Is it bad to refinance a personal loan?

Yes, refinancing a personal loan is not only possible, it can also be a good idea. It makes sense if your credit score has improved to a level where you’ll be offered enough of a rate reduction to compensate for any loan origination fees and costs associated with the loan.Click to see full answer. Also asked, does Refinancing a personal loan hurt your credit?Refinancing a personal loan involves taking out a new loan to pay off your current loan (or loans), which might hurt your credit scores. Generally, if you make your loan payments on time, this isn’t a long-term concern and your scores will rise again.One may also ask, how long should you wait to refinance a personal loan? A lower interest rate could save you money on the overall cost of the loan. Decreasing the dollar amount of your monthly payments by stretching out the length of the loan. For example, if you’re struggling to make payments with a loan term of 36 months, refinancing into 48 months could reduce your monthly payment. Also to know is, is it smart to refinance a personal loan? Personal loan refinancing may help you save money if you can lower your interest rate or shorten the repayment period. A lower interest rate may be an option if rates have declined, your credit or income has improved since you took out your personal loan, or you didn’t get a good rate on your first loan.Is it bad to refinance a loan?Refinancing your mortgage can be a good or bad idea, depending on your motivation and goals. Homeowners who refinance can wind up paying more over time because of fees and closing costs, a longer loan term, or a higher interest rate that is tied to a “no-cost” mortgage.