Can I refinance a personal loan?

The mechanics are simple: you apply for a new personal loan with the new lender, use those funds to pay off the existing loan in full, and continue with the new loan's payment schedule.

When it makes sense: your credit has improved 50+ points since origination (often the case when the original loan was for debt consolidation that lowered your utilisation), market rates have fallen, or your income has risen enough to support a shorter term.

When it doesn't: the new APR is close to the old one, the new loan has high origination fees, or your original loan has a prepayment penalty (which would offset the savings). Always check for prepayment penalties on the original loan before refinancing.