If you took out a personal loan to accomplish goals like consolidating debt or making home improvements, you probably locked in an interest rate and term length. This doesn't mean your initial terms have to stay the same until you pay off the loan in full, though. You can refinance your personal loan and get better terms.
The benefits of refinancing a personal loan
Maybe you've improved your credit score since getting your original loan. Or you may have found a different lender that charges a lower rate or fewer fees.
Refinancing could also be a good idea if you want to extend your term length and make smaller monthly payments or shorten your term length and pay less in total interest.
Whatever your reasoning may be, there are important steps to refinancing a personal loan.
See our picks for the best debt consolidation loans »
What does refinancing mean?
Definition and goals of personal loan refinancing
When you refinance, you're replacing your original loan with a new one. Your new loan comes with a different interest rate and monthly payments. You'll probably refinance into a new term length, and you may even switch from an adjustable rate to a fixed rate.
Refinancing can help you reach a multitude of financial goals. You could lower your monthly payments to adjust your monthly budget, lower your interest rate to save money long-term or switch to a shorter-term length to pay your loan off faster.
How and when to refinance a personal loan
How to refinance a personal loan
The application process to refinance a loan will be fairly similar to your experience the first time around.
The lender will ask for basic information, and you'll have to undergo the same screening process you did when you got your original loan. Credit score minimums vary by lender, but most companies take your credit score into account when making an approval decision. Most lenders will perform a soft credit inquiry to give you personalized rates.
Documents needed for refinancing a personal loan
Some common information you may need to provide includes:
- Name
- Reason for applying for a personal loan
- Contact information, including your address, phone number, and email
- Date of birth
- Social Security number
- Reason for taking out the loan
- Employment status
- Whether you rent or own your home
- How much you pay for housing each month
- Income
Can I refinance a personal loan?
Before you refinance your personal loan, look over your existing term length, APR, and any associated fees. Write down your monthly payment amount and your total remaining balance. Regardless of whether you stay with your current lender or pursue a different option, having a complete understanding of your situation will help you determine what the best deal is for you.
Additionally, check the company's Better Business Bureau score to make sure it hasn't changed since you first took out the loan and reflect on your experience with the lender. The BBB assesses a company's trustworthiness by measuring a business's responses to customer complaints, honesty in advertising, and openness about business practices.
When to refinance a personal loan
If you can lower your interest rate without paying additional fees, it may be in your best interest to take that deal. However, some lenders charge an origination fee when you refinance and take it out of the proceeds of your loan. In this case, you'll have to do some additional calculations.
"You have to factor the cost of those fees into whether or not it makes sense to refinance," Todd Nelson, senior vice president of strategic partnerships at Lightstream, told Insider. "You have to think about how much money you're going to save over time with this lower interest rate, and if it compensates you for the fees that you have to pay upfront."
Once you have all the information you need about your current loan, shop around and see what rates and terms you may qualify for with other lenders.
If you want to find a comprehensive list that compares many lenders, check out our guides on the best online personal loans, the best small personal loans, and the best personal loans for bad credit.
Refinancing a personal loan
Once you've done your homework and compared rates, term lengths, and fees, it's time to make a decision. You can refinance with your current lender or bolt for one with better terms.
The lender you choose will probably ask you to provide documents such as pay stubs, bank statements, W-2s, and employer contact information to verify your identity and listed finances.
"One of the nice things about a personal loan is that it's one of the simplest financial products," Ibo Dusi, former chief operating officer of Payoff by Happy Money, told Business Insider. "There's an interest rate that determines the cost of the financing, and there is usually an origination fee — but some lenders don't have that. Other than that, no other fees are common, either for the first time or for refinancing."
Lenders that let you refinance a personal loan
Not all lenders are the same, and not all lenders let you refinance a personal loan. Here are a few that do:
Best Egg personal loans
Best Egg lets you refinance personal loans that are in good standing, have a positive payment history, and do not exceed $100,000. This lender offers terms ranging from three to five years and loan amounts from $2,000 to $50,000. Additionally, Best Egg personal loans are not currently available in Iowa, Vermont, West Virginia, or Washington, D.C.
Read our Best Egg Personal Loan review
SoFi personal loans
You can refinance personal loans with SoFi as long as your loans are in good standing. This means your original loans cannot be in deferment, forbearance, or more than 30 days past due. Personal loans from SoFi range from $5,000 to $100,000, with terms between two to seven years. Also, this lender doesn't require any fees.
Read our SoFi Personal Loan review
LendingClub personal loans
LendingClub is worth considering if you're looking to exchange high-interest debt accounts for a more competitive rate. Loan amounts from LendingClub start range from $1,000 to $40,000. Term lengths available from this lender are between two to six years. In addition, LendingClub is known for offering some of the best personal loans for bad credit, with a minimum credit score requirement of 600.
Read our LendingClub Personal Loan review
Today's rates
FAQs
Will refinancing affect my credit score?
Refinancing can temporarily affect your credit score due to the hard inquiry from applying for the loan.
Can I refinance a loan with the same lender?
Yes, you can often refinance a loan with the same lender, but you should compare other offers first.
What does refinancing a personal loan cost?
The cost of refinancing a personal loan includes origination fees, application fees, and potential prepayment penalties on your current loan. Always calculate these costs to make sure refinancing is actually beneficial.
How often can I refinance?
You can refinance as often as you'd like, but you should consider the impact it could have on your credit and whether or not the timing makes sense.
What does it mean to refinance a personal loan?
Refinancing can temporarily affect your credit score due to the hard inquiry from applying for the loan.
Fixed rates from 6.49% to 35.49% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 08/08/25 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. Loan amounts range from $5,000— $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.
The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: To be eligible to receive an additional (0.25%) interest rate reduction on your Personal Loan (your "Loan"), you must set up Direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A., or enroll in SoFi Plus by paying the SoFi Plus Subscription Fee, all within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled Direct Deposit to an eligible Direct Deposit Account in accordance with SoFi's reasonable procedures and requirements to be determined at SoFi's sole discretion, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount will be lost during periods in which SoFi determines you have turned off Direct Deposit to your Checking and Savings account or in which you have not paid for the SoFi Plus Subscription Fee. You are not required to enroll in Direct Deposit or to pay the SoFi Plus Subscription Fee to receive a Loan.
Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status, be residing in the U.S., and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates at the time of application and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, income, and other factors. If SoFi is unable to offer you a loan but matches you for a loan with a participating bank, then your rate may be outside the range of rates listed above. Rates and Terms are subject to change at any time without notice. SoFi Personal Loans can be used for any lawful personal, family, or household purposes and may not be used for post-secondary education expenses. Minimum loan amount is $5,000. The average of SoFi Personal Loans funded in 2024 was around $33K. Information current as of 9/14/26. SoFi Personal Loans originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details. See SoFi.com/eligibility for details and state restrictions.
