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How to refinance?
Refinancing a loan is a process that involves several steps, each designed to ensure you get the best possible terms for your financial situation.
Typically, the first step in refinancing personal loans is to check your credit score and credit report. This is a crucial step because it helps you gauge whether you qualify for a lower interest rate than what you’re currently paying. Your credit score represents your creditworthiness, and lenders use it to determine the risk they take on when lending to you.
Next, you should contact your existing lender. This is an important step because your current lender may be able to offer you a better rate or more favourable terms to keep your business. Let them know that you’re considering refinancing and ask about the revised rate and terms they’re willing to offer.
The third step is to shop around. This involves comparing rates and terms from different lenders to find the best deal. You can pre-qualify with multiple lenders to see the rate and terms you can get on a new loan. Pre-qualifying typically doesn’t affect your credit score, and it allows you to compare new loan offers with the terms of your existing loan. However, every lender is different, so make sure to double check with them to make sure that their pre-qualification checks are indeed safe for your credit score.
Once you’ve found a lender with favourable terms, the next step is to apply for the loan. This involves completing a formal application with the new lender and providing any documents they may need to verify your details and income.
If you’re considering refinancing your loan, SocietyOne could be an excellent choice to consider. We offer both secured and unsecured personal loans, making it easier for you to find an option that fits your unique financial situation.
One of the key advantages of choosing SocietyOne for your refinancing needs is our competitive rates. We pride ourselves on offering comparison rates for personal loans that can be lower than traditional bank loans. This is part of our commitment to providing a faster and fairer deal for our customers. We believe that you deserve better, and we’re here to deliver.
Moreover, we use risk-based pricing. This means that the better your credit score, the lower your interest rate. We reward responsible financial behaviour, and we believe that those with good credit profiles should have access to attractive loan terms. This approach sets us apart from many traditional lenders and is part of our commitment to fairness and transparency.