How to Refinance Your Personal Loan: A Step-by-Step Guide

Loan document under magnifying glass representing refinance

If you’ve found a better rate or need to adjust your repayment term, refinancing your personal loan can save money and improve your cash flow. This guide walks you through each step—from evaluating your current loan to locking in a new offer.

Table of Contents

1. Evaluate Your Current Loan

Review your existing loan’s APR, remaining balance, term length, and any prepayment penalties. Calculate remaining interest cost so you can compare savings from refinancing.

2. Check Your Credit Score

A higher score unlocks better refinance rates. Pull your credit report, dispute errors, and pay down balances to boost your score before applying.

3. Compare Refinance Offers

Prequalify with multiple lenders—such as LendingClub and Upstart—to see APR, fees, and terms without hard pulls. Use our calculator to model potential savings.

4. Apply for the New Loan

Submit your full application with required documents: proof of income, ID, and bank statements. Review the loan estimate for closing costs or origination fees.

5. Pay Off Your Old Loan

Once approved, use the refinance proceeds to pay off your original loan in full. Confirm the old account is closed to avoid accidental autopay draws.

6. Set Up Your New Payments

Enroll in autopay for rate discounts and schedule payments to match your budget. Keep track of your new term and monitor your balance to ensure on-time repayment.

This post contains affiliate links. We may earn a commission at no extra cost to you.

Refinance with LendingClub → Refinance with Upstart →

Conclusion

Refinancing your personal loan can lower your APR, reduce fees, or adjust your repayment schedule. By following these steps—evaluating your existing loan, shopping offers, and setting up new payments—you can secure better terms and maximize savings.

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