NOW Finance No Fee Unsecured Personal Loan
From
6.75 %
p.a.
fixed rate
From
6.75 %
p.a.
comparison rate
- A competitive fixed rate
- Apply for up to $50,000
- Receive your funds in 24 hours
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NOW Finance No Fee Unsecured Personal Loan
- Interest rate from: 6.75% p.a.
- Comparison rate: 6.75% p.a.
- Interest rate type: Fixed
- Application fee: $0
- Minimum loan amount: $5,000
- Maximum loan amount: $50,000
Compare personal loan refinance options
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Personal loan refinancing is when you take out a new personal loan and use it to pay off an existing loan. You might want to do this if you spot a better loan you are eligible for, for example if it has lower interest rates or fees. It's also commonly done by people who have improved their credit score and want to take advantage of lower rates and can be done through your existing lender or through an entirely different lender.
If you qualify for a loan with a lower interest rate than your current personal loan, refinancing can save you money over the lifetime of your loan - however keep an eye out for early repayment fees in your original loan as these could wipe out any potential savings.
Refinancing your personal loan may sound complicated, but the process tends to be fairly straight forward:
- Compare personal loans with your existing loan to see if there's a better deal. Keep in mind most lenders advertise their lowest rates, and depending on your credit score you may be charged a higher rate.
- (Optional) Call your current lender and try to negotiate a price match or lower rate. If your credit score has improved since you took out the loan, be sure to mention that.
- Apply for your new loan.
- If approved, your new lender will either pay the funds to you for you to pay off your old lender, or your new lender will pay your old lender directly.
You should look at refinancing your personal loan, in short, when you think you can save money or if you need to extend your loan term. There could be a few reasons for this:
- Your credit score has improved. If your credit score has improved, you may qualify for a loan with better terms and a lower rate than your current loan. This could be with your current lender or through a whole new lender.
- You've found a better deal. If you see a loan you're eligible for that looks like it has lower rates or fees, that's a good enough reason to refinance. Be sure to get a quote from this potential new lender, as advertised rates can vary from reality depending on your credit score.
- You're consolidating debt. If you have multiple types of debt, it could be worth refinancing into a personal loan that can pay them all off so that you are left with one single debt. This makes it easier to manage repayments and, depending on your other debts, could result in a lower interest rate.
- You need a longer loan term. If you've had your loan for a while and need more time to pay it off or want to lower your monthly repayments, refinancing can enter you into a new contract and a new loan term. Remember that the longer your term, the more you pay overall.
Other than ensuring your new interest rate is lower than your old, the big thing to watch out for are break fees or early repayment fees. If your old lender charges these, they could potentially wipe out the savings you would make through refinancing.
Refinancing can hurt your credit score in some circumstances and it can improve it in others. Take a look at some of the ways refinancing can potentially harm and benefit your credit score:
How it can benefit your credit score
- Fewer open accounts. If you're taking out a new loan to refinance multiple personal loans, your credit score could improve, because you'll have fewer open accounts with outstanding balances.
- Meet your repayments. If you make your repayments on time, your credit score will improve – this is the biggest contributing factor towards your credit score.
How it can harm your credit score
- Multiple applications. If you apply for multiple new personal loans, you may find that your credit score takes a hit.
- You don't meet your repayments. Defaulting on a new loan will have a negative effect on your credit score.
Banks and lenders don't want you jumping ship every time you see a cheaper rate from a competitor, which is why refinancing can come at a cost.
Fees to take into account when calculating the costs of refinancing include the following:
- Application fees could set you back as much as $300, so confirm if you will be charged a fee on the new loan.
- Early repayment fees, or break fees, are sometimes charged by lenders and can put a considerable dent in the savings you could make from switching. Some are a flat rate, and others can be a percentage of your outstanding balance. Either way it could be hundreds of dollars.
When determining the value of refinancing, remember to take all aspects of both loans into consideration.
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Hi, I’ve got a loan of $35k+ currently with a 16.4%pa variable interest rate received about 4 years ago when my income was $40k/year less than now. Can I negotiate my loan amount with my big 4 bank lender? Or would I be better off with another lender?
Hi Dan,
Thank you for contacting Finder.
While you can negotiate home loans, you can also try if that could also be available for personal loans if you are to refinance. To help you with negotiating, it may be a good idea to take a look around to see what interest rates are currently offering to new customers by the big four and other lenders too. This may help you work out if you’re getting a good deal and it will also strengthen your argument when it comes time to talk to the bank for possible negotiation.
Hope this helps.
Kind Regards,
Mai