What does early repayment cost?

Under GEO 50/2010, the max fee is 1% of the amount prepaid if more than 12 months remain, or 0.5% if under 12 months. With variable interest the fee is ZERO.

Can I refinance if my score has dropped?

Probably not on better terms. Refinancing means a new risk assessment. If your score or income has dropped, the rate offered will likely be higher than your current one.

Does refinancing show as a loss in my history?

No. It appears as a new loan, and the old one closes with „paid early” status. This is neutral or slightly positive for the score — clean payment history is what matters.

Refinancing: when is it really worth it?

Refinancing means replacing one or more loans with a new one, usually at a lower rate, longer term or both. It sounds attractive but isn't always a real saving — it depends on APR, the early-repayment fee of the old loan and the remaining term.

When it makes financial sense

Refinancing pays off if: (1) the new APR is at least 1-1.5% lower than the current one; (2) you have at least 24 months left to pay (below that, savings don't cover fees); (3) the early-repayment fee maxes out at 1% per GEO 50/2010.

On the variable IRCC index (introduced in 2019 as an alternative to ROBOR), refinancing carries no early-repayment fee — a clear advantage when switching lenders.

Consolidation — a special case

If you have 3-4 small loans (card, NBFI, car loan), consolidating into one cuts the total payment and simplifies management. Caveat: a longer term lowers the payment but can raise the total cost by thousands of lei.

How to calculate savings correctly

Compare APRs, not just interest rates. Then compute the total cost of the old loan (payment × remaining months + remaining balance) versus the new loan (payment × total months). The difference minus the early-repayment fee = real saving.

Use the refinancing calculator to see exactly how much you save. If the difference is under 1,500-2,000 lei over the full term, refinancing probably isn't worth the effort.

Common mistakes

Multiple simultaneous refinancing applications drop the credit score. Apply with 1-2 lenders, not 5. Likewise, refinancing over a much longer term visibly lowers the payment but accumulates extra interest — always check total cost, not just the monthly payment.