Refinancing a personal loan involves taking a new loan to pay off the current loan.
Refinancing your personal loan could be the right choice if the interest rates are lower than the current interest rate on your loan, your income has improved, your credit score has improved, you paid some or all off your other debts, and you are looking to pay off the loan sooner.
Normally it is not a good idea to go for personal loan refinancing if your credit score has not improved, you have more debt than before, and the refinance costs are unaffordable.
Some of the advantages of personal loan refinancing include lower interest rate, longer payment term, faster loan payoff, additional funds, and fixed interest rate.
Some of the disadvantages of personal loan refinancing include prolonged debt, paying more interest over time, incurring additional fees, and impact on credit score.