How to Get a Medical Loan With Bad Credit
Most people are terribly worried about unexpected healthcare costs, given how expensive hospital bills are, but it is possible to get approved for a medical loan even with bad credit. It can be tricky, but it is surely far better than using credit cards or payday lenders to settle your healthcare bills.
First steps in getting a medical loan
Do you really need to take out a medical loan or is it possible to make an arrangement with your healthcare provider? Start by asking for your itemized bill and review it for accuracy. The total bill may be immediately reduced if there are errors.
Next, discuss your options regarding a payment plan. It can be daunting to receive a large medical bill, but the truth is that many providers, especially hospitals, offer interest-free payment plans for 12 to 24 months. However, if this is not possible, you may really have to consider applying for a medical loan with bad credit to help manage your costs.
Common uses for medical loans
A medical loan is a type of personal loan that is specifically used to cover medical expenses. Some lenders have specific products that are actually designed for people with bad credit. Just note that interest rates are usually higher for these kinds of medical loans. It will depend on your credit score and other factors, but the range is usually 6% to 20%, sometimes even more, especially with a bad credit score.
Once you get approved, you can use the medical loans for various purposes, such as physical therapy, infertility treatments, weight loss procedures and cosmetic surgery, and dental and orthodontic work. This loan can also be used to pay for hospital and other provider bills resulting after you have met requirements for co-pays and deductibles and paying off current bills through consolidation.
Getting your money
The size of the medical loan you can take depends on the lender and term length, plus your income and requirements of the lender. Some loans have minimum requirements up to $2,500, with the upper limit often at $40,000. This is truly variable though and will be determined by the lender.
What matters is you get a medical loan that you can afford. Find one that suits your needs and offers manageable monthly payments. Shop around and have all your documents ready to get approved for a medical loan faster even with bad credit.