Can’t Pay Your Medical Bills? Consider This Loan
Are you financially drowning due to medical bills? Or do you need to have a procedure that you cannot afford? See how a medical loan could help.
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Medical bills are often so costly that they can put anyone into deep debt. And if you recently had a procedure or are planning one that your insurance does not fully cover, you probably discovered this firsthand.
How can you cover medical costs that you cannot afford? By getting a medical loan. And while they are not for everyone, medical loans can certainly help if your health insurance has left you out to dry and you lack significant savings.
Medical Loan Basics
Unlike a mortgage secured by collateral that lets the lender repossess a home in case you fail to repay what you owe, a medical loan is unsecured. This can give you peace of mind knowing you won’t have property taken if you default on the loan, but it does lead to two disadvantages: 1. Medical loans can have higher interest rates. 2. Medical loans can carry smaller amounts than mortgages. Why? Because the lender is taking on more risk, so they charge you extra for it and give you less cash since no collateral is involved.
As for how much cash you can get from a medical loan, that number usually tops out at $100,000, which should be enough to cover a wide range of procedures. Medical loan terms, meanwhile, range from one to seven years, meaning you could have up to 84 months to pay that money back.
How can you get a medical loan? First, you need to figure out how much you need. Second, you need to shop around for a loan. If you are a credit union or bank member, try them first. If not, you may need to apply through an online lender like Universal Credit, Upstart, SoFi, Upgrade, Avant, Marcus LightStream, LendingPoint, or Discover.
Each lender will have its specific requirements, and you’ll find that some accept low credit scores while others won’t. To find the best medical loan, you must prequalify through the lenders. This process lets you see what type of interest rate, terms, and monthly payment you can get to pick the best option without a hard credit pull. Once you find the best option, formally apply for the medical loan.
If approved for the loan, you could get a lump sum deposited to your bank account in as little as one day, depending on the lender. Use the funds to pay your medical bills, then repay the loan with a fixed monthly payment.
If You Cannot Get A Medical Loan
As mentioned towards the top, medical loans are not for everyone. You may not qualify due to a low credit score or lack of history. Or you may find the interest rates to be too high. Regardless, there are other options to pay medical bills. The first is to sign up for a payment plan through the healthcare organization that is billing you. The second is to see if there is a financial assistance program for low-income applicants. The third option is to use a credit card if you have one. And finally, you could set up a GoFundMe campaign to gather donations for your medical care.