Medical loans are a popular solution to the health issues that affect many of us. Here we want to demystify this side of the loan market to explain some of the wide range of treatments these can be used for. We also
What is a Medical Loan?
Medical loans are loans specifically designed for help with paying for medical issues. Loans for medical procedures are different in that they tend to relate to more urgent issues, like those that affect us on a directly biological level. These can also be highly varied, with the best medical loans for surgery not necessarily being the best for anything else.
Those are my top 3 Best Medical Loans
- Admin. fee: 0.99% - 5.99%
- Annual income of $80,000
- Min credit score of 640
- Failed payment fee: $15
- Day of Grace: 3 days
- Grace period fee: $25
- Administrative fee: 0% - 8%
- Min credit score of 620
- Quick funding - 1 Day
- Grace period fee: 5% Max $15
- No prepayment penalty
- No fees
- Low interest rate
- Fixed Rates
- Min credit score of 680
- Unemployment protection
- SoFi member benefits
What Can I Use a Medical Loan For?
Medical loans cover an enormous range of uses, from urgent surgery loans to elective cosmetic surgery.
Plastic Surgery Loans
Cosmetic surgery is very popular these days, with lowering costs and improving industry expertise making plastic surgery all the more accessible. One of the most common procedures, at least in women, is breast augmentation surgery.
Loans for dental work can cover a wide range of possible issues and repairs. From simple fillings to complete tooth replacements and major surgery, dental financing in medical loans can be a major blessing. Being able to eat or drink without pain can do a lot to raise our quality of life, making these loans a very sensible option.
In simple terms, bariatric surgery refers to a range of procedures which deal with issues regarding weight-loss. This involves making internal changes to a person’s digestive system to limit the amount a person can eat, or how much nutrients they can absorb.
Fertility treatments can be towards the expensive end, but for many trying for a family, they can be the only viable path forward. Financing for fertility treatment covers doctors’ visits, hormonal treatments, and even in-vitro fertilization if the couple wishes or needs to go that route.
Vision Care Financing
For most of us, eye-sight is not something we could do without. Vision care financing covers a wide range of potential issues relating to eye health and degradation. This includes glaucoma treatments, cataract removal, and elective LASIK surgery so that people can live their lives without reliance on glasses or contact lenses.
Hearing Aid Financing
Like vision loss, hearing degradation is an often-inevitable part of life. Medical loans for hearing-aids can generate massive quality-of-life benefits, with this particular range of technology being more advanced than many know. For example, some new hearing-aids come with Bluetooth compatibility, meaning users can hook directly into a TV without bothering their friends or family.
Hair Restoration Loan
Hair restoration technology has come a long way in the last couple of decades, but hair restoration and hair transplant costs can still be prohibitive. Loans for these systems can help give people back their confidence, and even generate real benefits when it comes to personal and professional lives.
Maternity Leave Loan
Unlike many countries, the US can be lacking when it comes to maternity leave. By taking a loan, it becomes much more easily possible for a woman to spend time with her child, helping her adjust, and building the ever-important first bond. These forms of medical loans can also help with issues such as post-partum depression.
Should You Take Out a Medical Loan?
Much like with a personal loan, whether or not you should take loans for medical bills very much depends on your individual situation. Consider the following alternatives:
- You need a loan for an illness that will only get worse or more expensive to treat if not addressed immediately.
- You need a loan for a non-critical issue that could be saved for with only minor issues.
While this is an oversimplification, it does illustrate that not all loans are created equal. Consider how necessary the treatment is in a strict sense before going in, as well as the costs/benefits to instant or delayed action.
Medical Loans With Bad Credit
If you have a poor credit score, getting a medical loan is going to be more difficult. In this case, there are going to be a couple of main options to choose from.
The first option will require finding a co-signer for your loan. This is a person who will choose to take on the debt alongside you. Sometimes they can help pay off the debt openly if this is agreed on. Other times, this will be the person to whom the debt defaults if you’re unable to pay.
Option number two is a higher-interest loan. These will naturally be more expensive, but they can also be the only way that some lenders can ensure they’ll get their money's worth.
What to Consider When Taking Out a Medical Loan
When taking a medical loan, there are four main avenues which you’ll need to first address. Any of these can put a major hamper on the experience and make outcomes down the road significantly more troublesome. Take a look below and see how these affect you.
Origination fees refer to the one-time costs that lenders can charge when processing a medical loan. The total amount on this fee will tend to change based on the total loan amount, with a larger loan generating a larger origination fee. Sometimes this is taken out of the final loan amount, so be sure to check the loan details ahead of time.
Annual Percentage Rate (APR)
The annual percentage rate (APR) operates in the same way as interest does for any other type of loan. This will be a percentage of your loan which is added to the total amount owed at the end of a year. For example, a loan of $1,000 with 10% APR would end up costing $1,100 at year-end, provided no repayments were made. Be sure you can at least cover this interest rate, or costs can skyrocket.
This is the part of the loan agreement that determines whether or not you'll be able to receive any given medical loan. Application requirements often include a minimum credit score or at least some indication that you'll be able to pay back that which is lent within a reasonable timeframe.
Loan terms are the greater conditions that can apply to a medical loan agreement. These are often put in place to ensure a minimum payment amount is made by the recipient, and that the loan is only used for what is agreed upon. Be sure to read these thoroughly to avoid confusion and contention down the line.