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Does refinancing start you over?
Refinancing, in essence, is the process of replacing existing personal loans with new ones, often with different terms and conditions. The new loan pays off the old one, and you’re left with the new loan to repay. This process can extend the term of your loan and the unpaid balance to match the new loan’s terms.
At SocietyOne, we understand that some borrowers view the concept of refinancing as starting over. However, it’s more accurate to view it as an extension of your loan’s lifespan. It’s not necessarily bad; in fact, there are valid reasons why borrowers may need or want to refinance their personal loans.
As with any financial decision, it’s crucial to approach refinancing responsibly. Understanding the responsibilities involved in your refinance loan is crucial before fully committing to one. Since refinancing involves new loan terms or agreements with your credit provider, always clarify points that differ from your earlier loan.
This is particularly important when it comes to repayment schedules or added charges. Most refinance loans require establishment fees or include penalty fees for past missed payments.
Another critical factor to consider before deciding to refinance your loan is your credit score. Your credit score is a numerical representation of your creditworthiness, and it can significantly impact the terms of your new loan, including the interest rate. That’s why we encourage you to check your credit score before making any decisions about refinancing.
Now, you might be wondering, ‘Won’t checking my credit score affect it negatively?’
At SocietyOne, we allow you to check your credit score and eligibility without impacting your credit score. This means you can get a clear picture of your financial standing and make informed decisions about refinancing without worrying about damaging your credit score.
However, once you have submitted your loan application, we will conduct a ‘hard check, which will be reflected in your credit score, as part of our credit assessment process.
We’re also proud to offer a fast, easy, and 100% online application process. You can apply at a time that suits you, whether that’s in the evening or over the weekend. Our online application process can be completed in just a few minutes. You’ll be asked to provide some basic information about yourself and your financial situation.