Can I Refinance a Personal Loan?
If you don’t have the best personal loan, you can consider refinancing it with another personal loan with better terms and interest rates.
Some lenders will allow you to refinance a loan from another lender, but not their own loans. Others will let you use your personal loan for any purpose, including refinancing another of their loans.
It’s a good idea to consider refinancing a loan if you’ve improved your credit score and can secure a better APR because it lets you take advantage of a lower interest rate that can save you a lot of money in the future.
If you’re looking for a loan that’s best for debt consolidation, consider specialized offerings as well as personal loans. Some lenders have dedicated debt consolidation loans with better rates than even the best personal loans.
When looking for the best personal loans, a major factor is your interest rate. Lenders look at many factors when deciding on your APR, such as:
- Loan amount
- Your credit score, income, and DTI
- Current market trends
However, if you barely meet the min credit score, you may find that you receive a much higher rate than the minimum APR advertised.
- Getting a secured loan instead of an unsecured one
- Signing up for the auto-pay discount that many web-based lenders offer
- Avoiding integrating the origination fee into the APR and offering to pay it as a portion of the loan instead
- Shop around for lenders with a lower origination fee and different qualification requirements
- Choose a shorter loan term
- Get a co-signer, if allowed by the lender
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Payday loan lenders are required to abide by federal, state, and local laws. Make sure you fully understand the terms and interest rate of any loan offered by a payday loan provider.
However, it may be a good idea to take the information you get from and contact the lender directly for your unsecured loan. You may be able to get slightly better terms and interest rates.
LightStream personal loans are available throughout all 50 US states as well as in Washington, DC, and Puerto Rico. Loan amounts range from $5,000 to $100,000 depending on the loan’s purpose. The APR range is from 2.49% to %, and customers who opt for the auto-pay option receive a 0.50% rate deduction.
The main drawback of applying at Marcus by Goldman Sachs is that it doesn’t disclose its minimum credit score requirement or minimum income range. Neither does the lender accept co-signers, which can limit the options of individuals with a bad to fair credit score.
The service is especially useful for individuals with fair to good credit who may otherwise get unfavorable personal loan rates and loan terms from other providers.
Payment history: Do you always pay your monthly payments by the due date, or do you have a history of frequently missing payments?
Credit consolidation can reduce your monthly payment, help you pay off your debt faster, and free up your income for expenses so that you don’t have to take on more debt.
Unsecured loans aren’t tied to any of your assets, which can make them safer for borrowers. However, it does mean a higher interest rate to compensate.
A high interest rate will make the total cost of the loan higher because you’re paying back a higher amount each month. Lower interest rates are always better when it comes to looking for the best personal loan, assuming all other conditions are equal.
If you’re struggling to secure a loan with a minimum credit score, consider going with a co-signed or secured loan instead. Secured loans often have a lower minimum credit score requirement because the lender has a fallback if you fail to make your payments on time. Co-signers will add their credit score to yours, which is often enough to clear the minimum threshold.