Grace Enfield, Content Writer
Yes, you can refinance a Discover personal loan using either a new personal loan or a balance transfer credit card from a different lender. By paying off your remaining Discover balance with a new, lower-interest loan or credit card, you will shift what you owe to the new lender and save money on finance charges.
How to Refinance a Loan from Discover With a New Loan
- Check your credit score. Checking your credit helps you see if you’re able to get approved with the score you have or if you need to spend some time improving it. You can check your credit score for free on WalletHub.
- Get pre-qualified (if possible). Pre-qualifying shows you which lenders may approve you and what rates may be available to you. You can pre-qualify with multiple lenders for free on WalletHub.
- Apply for the new loan. You can apply for the loan online, in person or over the phone. You’ll need to give the lender some personal information when you apply, like your name, address and date of birth. The lender will also need some financial information, like your employment status and income.
- Wait for funds. You should get your loan within a few business days of being approved. The lender will either write you a paper check or do a bank transfer.
- Pay off the old loan. Once you receive the money, you’ll need to pay off the old loan.
- Repay the new loan. After the old loan is paid off, you’ll then need to repay the new loan. This could take a few months or years to do.
Refinancing a Loan from Discover With a Balance Transfer
The biggest difference between using a balance transfer credit card and a personal loan for refinancing is that many cards offer 0% introductory APRs. If you can pay off your loan before the introductory period ends, you won’t have to pay interest.
To learn more, check out WalletHub’s balance transfer guide.
You should refinance a personal loan from Discover if it saves you money. Ideally, your new loan or credit card should have a lower APR than your old loan. You can qualify for a lower APR if your credit score and overall financial situation are better than when you got the first loan.
Finally, it’s worth noting that Discover does not offer personal loan refinancing services for its own loans. In other words, you can’t use a Discover loan to pay off another Discover loan and get a lower interest rate in the process.
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