A, AL / ACCESS Newswire / October 8, 2025 / NEW YORK CITY, NY / ACCESS Newswire / October 8, 2025 / Just like refinancing a mortgage or car loan, you can refinance a personal loan in order to improve the terms of your loan. Strictly speaking, you can't refinance a personal loan more than once, because your old loan is replaced by a new loan when you refinance. However, you can refinance your new loan in the future if you need to.

Before you pursue a refinance, it's important to understand when refinancing is a good idea and what to consider if you need to do it more than once.

What is personal loan refinancing?

Refinancing a personal loan means taking out a new loan to pay off an existing one, either with the same lender or a different one. Ideally, you should refinance your loan at a lower interest rate than the original loan. If you've already refinanced your personal loan once and are thinking about doing it again, you're not alone. But you need to make sure that the second (or third) refinancing will actually benefit you.

What are the pros of refinancing more than once?

Refinancing more than once could be beneficial, depending on your situation. Here are a few advantages:

• Lower interest rate: If interest rates have dropped since your last refinance, or your credit has improved, refinancing again at a lower interest rate could save you more money on interest, depending on the length of the loan term.

• Lower monthly payments: Refinancing could help you stretch out the loan term, reducing the amount you have to pay each month. While extending your loan term may not always help you save on overall interest costs, it may relieve some short-term financial pressure.

• Better loan terms: If you weren't happy with the terms of your last refinance, you might be able to find a new lender offering more flexible or favorable conditions.

What are the cons of refinancing multiple times?

While refinancing may be a smart financial move, there are potential downsides, especially if you do it multiple times:

• Fees and costs: Every time you refinance, there may be fees involved, like origination fees (a fee for processing the loan application) or penalties for paying off your original loan early. These costs can add up and may offset the benefits of refinancing again.

• Longer repayment period: When you refinance, you often extend the repayment term. A longer term means you could end up paying more interest overall, even if your monthly payments are lower.

• Impact on credit score: Generally, when you apply for a new loan, the lender will run a hard credit inquiry to review your credit report as part of the loan application process. This may temporarily lower your credit score.

Be strategic when refinancing more than once

Refinancing your personal loan debt more than once could be a good financial move if done strategically. The key is to make sure you're actually saving money or improving your loan terms with each refinance. The goal should be to pay off your debt without falling into a cycle of refinancing that ultimately may cost you more in the long run.

Always consider the costs and make sure it's the right time for you before applying. If done right, refinancing might help you better manage your debt.

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SOURCE: OneMain Financial