Illness always comes unexpectedly. And paying for medical care in the US can hardly be called cheap. Even if you have health insurance, medical bills can run into thousands of dollars, and not everyone has the means to pay them back. Taking care of your health is of prime importance, so medical loans may come in handy to cover all expenses. That is why we are going to tell you everything about this type of loan and provide some simple tips on how to get it.
A medical loan is a type of personal loan that is used for the sole purpose of paying for medical services. And you can get extra money for both emergency treatment and preventive care. In addition, medical loans are typically unsecured, meaning you do not have to pledge collateral and risk your car or home for the sake of your health. Another advantage is the fast accrual of money, as you receive a loan on the same day or within a couple of days after applying for it.
Medical loans are better suited for those who have a good credit history. However, you can still get healthcare financing even if your credit score is not so high. But in this case, you will have to pay greater fees and interest rates.
A medical loan is a separate type of personal loan that is used to pay for medical bills. Personal loans also include financing for other areas such as house maintenance and repairs, purchase of home appliances, wedding costs, travel expenses, car servicing, debt consolidation, and a few others.
Medical loans turned out to be the most popular type of personal loan. After all, the problem of medical debt in the United States is growing every year. So, a survey conducted in February 2022 showed that 56% of Americans have medical debt. Moreover, 23% owe $10 000 or more. At the same time, 1 out of 2 debtors has health insurance, which provides one more proof that you may need a medical loan even if you are insured.
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If you are in dire need of medical care but do not have money and adequate insurance, a medical loan is the best option to cover all the costs of treatment. Indeed, if you are in a life-threatening condition, it is better to borrow money than to reschedule a visit to the doctor while experiencing enormous suffering and pain. Let’s consider the most popular reasons why people apply for loans for medical bills.
Before applying for a medical loan, you should make sure that you get the best and most favorable offer. Here are the main things you should consider when comparing available loan packages.
Once you get sick but do not have enough funds to get proper medical care, it’s time to apply for some extra money for healthcare financing. How to do it? Follow these simple steps:
This is the first step to take before applying for loans for medical procedures. After all, you must be sure that you will manage to return the borrowed money, taking into consideration all the fees. So, perform the necessary calculations and determine the amount that matches your monthly household budget.
This will help you decide what kind of lenders to look for. For example, some of them give money only to clients with excellent credit history, while others work with those who have low credit scores. Moreover, check your credit profile and correct the mistakes, if any.
You can get a loan for medical procedures in the same way as other types of loans – via a credit union, a banking facility, or an online lender. Find 3-5 loan options and analyze their APR, terms, amounts, and requirements for receiving money. Take all these aspects into account and make your final decision.
To apply for a medical loan, you need to fill out a special application form and provide the lender with some documents that traditionally include:
Many people apply for a medical loan without fully understanding its nuances. If you are going to take a loan for medical expenses, you should learn about its advantages and disadvantages to identify whether this option is right for you.
Medical loans are available to everyone, even for those with a low credit score (below 670 according to the FICO system) or no credit history. The point is that lenders always take risks when they give bad credit medical loans to such clients. Therefore, they impose large interest rates and fees for those with a low FICO score. So if you have bad credit, it may be better to consider other options for financing medical treatment.
Medical loans are just one of the options for healthcare financing. If you have bad credit or cannot get a medical loan for some other reason, there are several other options for you to consider.
This is a good option to cover small expenses for medical procedures. Some lenders even offer special medical credit cards. But there is one downside, credit cards often come with higher interest rates (the APR varies from 4.99% to 35.99%). Although, some providers offer no-interest medical financing if you manage to pay off the loan within a certain period.
Most healthcare institutions offer various payment plans that cover treatment and allow you to pay off the medical debt within 12-18 months. At the same time, they set minimum fees or offer no-interest payment plans. Therefore, this is a great alternative to medical loans, which often come with high fees, especially if you have a low credit score.
There are many charitable organizations that help people in need pay their medical bills. The most renowned nationwide charities are the Patient Access Network and the HealthWell Foundation. Moreover, you can find organizations that help children and people with certain illnesses. Google more charities if this option interests you. Of course, you will not receive money as quickly as you want, but charity institutions never charge any fees or interest rates.
More than half of US residents have healthcare debts. And medical loans are designed to solve this problem. Do not delay a visit to your doctor! Even a seemingly non-serious illness can become life-threatening without proper medical care. If you have a good credit history and a high credit score, you can get a medical loan with no or minimal interest. Thus, you will solve all your health issues and manage to pay off the loan without any problems. We hope this article was helpful. Keep in mind that LoanSolution is always here to solve your financial troubles. Take care!
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