In most cases, you need a credit score of at least 580 for a medical loan, since most medical loans are just general-purpose personal loans under a different name. This means you may qualify for a medical loan with bad credit, but you'll need a higher rating to get a loan with a low APR and no opening fee. Several online lenders advertise “surgical loans”. However, the best way to get medical loans for surgery is to apply for them with one of the best providers of personal loans, such as LightStream or American Express.
LightStream offers specific loans for medical expenses, including surgery. Amex and most other lenders offer loans that can be used for almost any type of surgery, covering income lost during recovery, and unrelated things, such as home renovation and debt consolidation. You must have at least a 600 credit score to apply for a personal loan from Upstart. However, the company also works with borrowers who don't have enough credit history to receive a rating.
Read our full review of Prosper Healthcare Lending to learn more. While improving your credit score takes time, it can increase your chances of qualifying for a loan more quickly if you apply with a creditworthy co-signer. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Whether you need treatment for a medical emergency or elective surgery, paying for an expensive procedure can be difficult.
It offers a standard APR of 26.99%, but borrowers may be eligible for certain CareCredit promotions. Because medical loans usually have a fixed interest rate, you'll know exactly how much you owe each month. That way, it offers an advantage compared to using variable-rate credit cards to pay medical bills. In addition to your credit score, Best Egg takes into account more than 1,500 unique credit attributes from sources including third-party data providers and your digital footprint, meaning you could qualify even with a shorter credit history.
By using any of these methods to consolidate medical bills, the issuer of the new loan or credit card pays off existing debts, which are then combined and owed to the new lender, ideally with a lower APR. Medical loans are personal loans used to pay for health care costs, such as surgery, hospital bills, and dental care. If you have poor or fair credit, Avant may be a good option for a secured or unsecured personal loan. If you need several treatments or want to have ongoing access to funding in case of emergencies, CareCredit is a revolving credit account with which you can borrow repeatedly when needed.
Some organizations offer financial aid or grants to pay medical bills, while others may connect you with providers of free or low-cost health care services. Getting someone with a good credit history to co-sign your loan can increase the likelihood that it will be approved or help you qualify for a lower interest rate. Before you pay your medical bill, take some time to review your bill and make sure everything is correct. That said, if you don't have a high enough credit score to qualify for an unsecured loan for medical expenses and you don't want to provide collateral for a secured personal loan, there are a few other avenues you can take.
The best options for medical debt consolidation include personal loans, home equity loans, home equity lines of credit and balance transfer credit cards. .