Personal loans can be used for a variety of medical treatments, including elective procedures, fertility treatments, prescriptions, surgeries, and more. A number of lenders, including certain banks, credit unions and online lenders, offer personal loans that can be used as medical treatment. A medical loan is an unsecured personal loan that covers health care costs. It can be used to consolidate existing medical debt, cover planned or emergency medical procedures, such as dental work or plastic surgery, or pay high deductibles and out-of-network charges.
Yes, you can apply for a personal loan to pay for just about anything. It's not insured, which means there's no guarantee. Personal loans for medical expenses are backed by a promise to repay the lender; as a result, interest rates may be higher than those of a secured loan, which uses an asset as collateral. A medical loan is essentially a personal loan that is requested for the specific purpose of funding medical treatment.
Medical loans can cover a variety of medical costs, such as elective surgeries, IVF treatments, and emergency procedures. In addition, those who need treatment right away and don't have adequate insurance or enough money to pay for medical expenses themselves may consider applying for a loan. Even if you have health insurance in the United States, you may end up with thousands of dollars in medical bills that you can't afford. It's important to note that medical credit cards offer deferred interest, not zero interest.
However, both preventive care and emergency treatment are important; for people who can't cover those expenses up front, medical loans can help cover costs. In the case of personal loans, the APR ranges from 8.30% to 36.00% and the origination fee ranges from 3.00% to 6.00% of the loan amount. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Also called personal loans or signature loans, these financial products allow you to borrow money without placing any collateral.
To officially apply for the loan, a credit check, salary check and other information will be required. While many Americans choose to postpone medical treatment because of the cost, medical loans exist for a reason and are here to help you pay for the care you need. Medical loans can be used to pay for almost any type of procedure or treatment, from emergency room visits to wisdom teeth removal. If you have an acceptable or poor credit rating (a credit score of 689 or lower), you may receive a high APR on your medical loan, meaning you'll pay more interest over the term of the loan.
In addition, unpaid medical debt can also have a negative effect on your credit score, which can affect your ability to qualify for a mortgage. If your credit score isn't good, especially if you've had difficulty paying your medical bills in the past, you can also apply for a secured medical loan. Medical loans can be used for expenses such as emergency room visits, plastic surgery, LASIK surgery, IVF, or gender-affirming surgery. As soon as you receive your bill, it's good practice to call the billing department to try to negotiate your medical bill.