Adam McCann, Financial Writer
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The downside of refinancing is that you might not always be able to get a rate on your new loan or credit card that's better than your current rate, in which case that defeats the purpose. You could also potentially have fees on the new loan or credit card, which increases the total amount you need to borrow. And refinancing a debt also leads to a hard pull of your credit, which will temporarily cause a small drop in your credit score.
That said, refinancing is often a very good thing, and can save you a significant amount of money. Plus, the hard pull is easy to recover from after a few months of on-time payments.
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