{"id":236318,"date":"2025-09-30T16:11:13","date_gmt":"2025-09-30T16:11:13","guid":{"rendered":"https:\/\/evertise.net\/?p=126258"},"modified":"2025-09-30T16:11:13","modified_gmt":"2025-09-30T16:11:13","slug":"onemain-financial-how-does-refinancing-a-personal-loan-work","status":"publish","type":"post","link":"https:\/\/ipsnews.net\/business\/2025\/09\/30\/onemain-financial-how-does-refinancing-a-personal-loan-work\/","title":{"rendered":"OneMain Financial: How Does Refinancing a Personal Loan Work?"},"content":{"rendered":"

It might sound simple to <\/span>refinance a personal loan<\/strong><\/span><\/a>\u2014 swapping one loan for another, but it can offer an opportunity to reshape a borrower\u2019s finances. By taking out a new loan to replace an existing one, borrowers can potentially lower their interest rate, reduce monthly payments, or choose a lender that better fits their needs.\u00a0<\/span>\u00a0<\/span><\/p>\n

Whether a borrower is looking to save money, streamline payments, or gain a bit of financial breathing room, refinancing could be the key to reaching their goals faster. Here\u2019s how it works:<\/span>\u00a0<\/span><\/p>\n

Decide how much to borrow\u00a0<\/strong><\/p>\n

A borrower who wants to refinance their personal loan should make sure their new loan has a high enough borrowing limit to cover the balance on their current loan. They should also check whether their existing lender charges a prepayment penalty, which is a fee for paying off a loan early. If they do, they should do the math and make sure refinancing makes financial sense.<\/span>\u00a0<\/span><\/p>\n

Understand their credit\u00a0\u00a0<\/strong><\/p>\n

Before a borrower looks for refinancing offers, it\u2019s wise to determine their creditworthiness. They can get a free credit report from AnnualCreditReport.com or use a free credit score monitoring service to review their credit history.\u00a0<\/span>\u00a0<\/span><\/p>\n

If borrowers notice any errors on their credit report, they should dispute them with the appropriate credit reporting bureau to ensure their credit is in good standing before applying for a new loan.\u00a0<\/span>\u00a0<\/span><\/p>\n

Prequalify for loan offers\u00a0<\/strong><\/p>\n

Not all lenders are created equal. For this reason, it\u2019s well worth it for a borrower to shop around and compare refinancing options from different lenders. Many lenders offer prequalification tools on their websites so prospective borrowers can check potential rates and terms without impacting their credit score. It\u2019s also important to note that refinancing usually involves working with a lender that is different from the one that issued the original loan. Borrowers should compare factors like:<\/span>\u00a0<\/span><\/p>\n