Personal Loan Refinance 2026: Lower Your Rate & Monthly Payment
Rates from 6.99% APR · Save $1,000+ in interest · Soft credit check to compare
No credit score impact to compare · See savings in 2 minutes
Quick Answer
Yes, you can refinance a personal loan. By taking out a new loan at a lower APR and using it to pay off your existing loan, you can lower your monthly payment and save thousands in interest. Refinance when your credit score has improved 20+ points or market rates have dropped. Compare refinance offers at Money Pup Loans with a soft credit check — zero score impact.
How Much Can You Save by Refinancing?
Examples based on a $15,000 loan with 24 months remaining:
| Current APR | Current Payment | New APR | New Payment | Monthly Savings | Total Interest Saved |
|---|---|---|---|---|---|
| 24% | $789 | 12% | $708 | $81/mo | $1,944 |
| 20% | $763 | 10% | $691 | $72/mo | $1,728 |
| 18% | $750 | 9% | $685 | $65/mo | $1,560 |
| 15% | $727 | 8% | $679 | $48/mo | $1,152 |
| 12% | $708 | 7% | $672 | $36/mo | $864 |
When Should You Refinance Your Personal Loan?
✅ Refinance When:
- • Your credit score improved 20+ points since origination
- • Market rates have dropped 2%+ since you got your loan
- • You want to remove a co-signer from the loan
- • You want to switch from variable to fixed rate
- • You want to extend term to lower monthly payments
- • Your income increased significantly
- • You have 12+ months remaining on your loan
- • Savings exceed any origination fees
❌ Do NOT Refinance When:
- • Your credit score dropped since origination
- • You have less than 6 months remaining
- • Origination fees exceed interest savings
- • You plan to apply for a mortgage soon
- • Your current rate is already below 8%
- • You recently had a hard credit inquiry
- • Your debt-to-income ratio has increased
- • You missed recent payments on the loan
Paying too much on your personal loan?
Check refinance rates from multiple lenders. Soft credit check only. See how much you could save.
Best Personal Loan Refinance Lenders — August 2026
| Lender | APR Range | Max Loan | Min Credit | Origination Fee | Best For |
|---|---|---|---|---|---|
| 🏆 Money Pup Loans | Varies | $50K | 580+ | Varies | Multi-lender comparison |
| ⭐ LightStream | 6.99-25.49% | $100K | 680+ | 0% | Lowest rates, no fees |
| 💼 SoFi | 8.99-29.99% | $100K | 680+ | 0% | No fees, unemployment protection |
| ✅ Discover | 7.99-24.99% | $40K | 660+ | 0% | Direct payoff to old lender |
| 🏦 Marcus | 8.99-24.99% | $40K | 660+ | 0% | Zero fees, direct payment |
| 🤖 Upstart | 7.80-35.99% | $50K | 580+ | 0-8% | Credit score improved recently |
| 🎯 Payoff | 8.99-24.99% | $40K | 640+ | 0-5% | Credit card debt payoff |
See How Much You Can Save
Compare refinance rates from multiple lenders. Soft credit check only. No score impact. Find your savings in 2 minutes.
Check Refinance Rates →How to Refinance Your Personal Loan: 5 Steps
Check your current loan details
Note your current APR, remaining balance, remaining term, and monthly payment. Also check if your loan has any prepayment penalties (most personal loans do not).
Check your credit score
Has your score improved since you got the loan? Even 20 points can qualify you for a significantly lower rate. Check for free at Credit Karma or your bank.
Compare refinance offers (soft pull)
Use a lender marketplace to see refinance rates from multiple lenders with one soft credit pull. Compare APR, term, and total cost — not just monthly payment.
Apply for the best offer
Once you choose a lender, submit a formal application. The lender will do a hard credit pull and verify your income. Have your ID, pay stubs, and current loan info ready.
Pay off your old loan
After approval, the new lender either pays off your old loan directly or deposits funds into your account for you to pay it off. Confirm the old loan is paid in full and closed.
Refinance Break-Even: Is It Worth It?
To determine if refinancing is worth it, calculate your break-even point:
Break-Even = Origination Fee ÷ Monthly Savings
✅ Worth It Example
- Origination fee: $300
- Monthly savings: $80
- Break-even: 3.75 months
- Total savings after 24 months: $1,620
❌ Not Worth It Example
- Origination fee: $600
- Monthly savings: $20
- Break-even: 30 months
- Only 12 months remaining on loan
Tip: Look for 0% origination fee lenders (SoFi, Marcus, Discover, LightStream) to make refinancing almost always worth it if your rate drops by 2%+.
Related Guides
Frequently Asked Questions
Can I refinance a personal loan?
Yes. You can refinance a personal loan by taking out a new loan with a different lender at a lower APR and using it to pay off your existing loan. This can lower your monthly payment, reduce your total interest, or both. Most borrowers refinance after 6-12 months of on-time payments if their credit score has improved or market rates have dropped.
→ Check your refinance rate — soft credit check only, see how much you saveWhen should I refinance my personal loan?
You should refinance your personal loan when: (1) your credit score has improved by 20+ points since you took out the original loan, (2) market rates have dropped significantly, (3) you want to remove a co-signer from the loan, (4) you want to switch from a variable to a fixed rate, or (5) you want to extend your term to lower monthly payments. Only refinance if the savings exceed any origination fees.
→ Check your refinance rate — soft credit check only, see how much you saveHow much can I save by refinancing a personal loan?
On a $15,000 loan with 24 months remaining, dropping your APR from 20% to 12% saves $1,200+ in interest. Dropping from 24% to 10% saves $2,000+. The exact savings depend on your remaining balance, remaining term, and the rate difference. Use a refinance calculator or compare lenders to see your actual savings.
→ Check your refinance rate — soft credit check only, see how much you saveDoes refinancing a personal loan hurt your credit?
Refinancing causes a temporary 3-5 point credit score drop from the hard inquiry. However, refinancing can improve your credit long-term by lowering your monthly payment (easier to pay on time) and reducing your debt-to-income ratio. The new loan also adds to your credit mix, which can boost your score over time.
→ Check your refinance rate — soft credit check only, see how much you saveCan I refinance a personal loan with the same lender?
Some lenders allow you to refinance with them directly, but most require you to use a different lender for the refinance. This is because the new lender pays off your old loan. Using a lender marketplace lets you compare refinance offers from multiple lenders at once with one soft credit pull.
→ Check your refinance rate — soft credit check only, see how much you saveAre there fees to refinance a personal loan?
Some lenders charge origination fees (1-8%) to refinance. Others charge 0% origination fees (SoFi, Marcus, Discover, LightStream). Always compare APR (which includes fees) rather than just the interest rate. If the origination fee exceeds your interest savings, refinancing is not worth it. Use the break-even formula: Savings > Origination Fee.
Written by
Michael Thompson
Personal Finance & Loan Refinance Specialist · 18 years experience
Michael helps borrowers lower their loan payments through strategic refinancing when rates drop or credit improves.
Lower Your Personal Loan Rate Today
Compare refinance rates from multiple lenders. Soft credit check only. No score impact. Save $1,000+ in interest. Rates from 6.99% APR.
Check Refinance Rates → FreeNo credit score impact · Soft pull only · See savings in 2 minutes