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5 Best Medical Loans For Bad Credit
The inability to pay medical bills is a common problem in the U.S. Statistics show that 1 in 10 adults in the country owe medical debt. People with bad or poor credit scores typically struggle with American healthcare costs the most since they also face difficulties getting extra financing.
Luckily, several lenders now offer medical loans for bad credit. While they often come with high interest rates and fees, it is crucial to compare your options to choose the best offer. We have reviewed dozens of lending companies and chosen the five best places to apply for bad credit medical loans.
5 Best Medical Loan Lenders For Bad Credit
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Provide your bank account information
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Provide an active email address and phone number
- Origination fees up to 12%
- $15 late fee
- $15 NSF fee
- Quick access to loan funds
- No prepayment penalties
- Flexible monthly payments
- Soft credit check when prequalifying
- Flexible loan amounts
- Origination fees up to 12%
- High maximum annual percentage rate
- Co-signers aren’t allowed
- Hard credit checks for final approval
- Limited repayment loan terms
Poor credit borrowers who can’t qualify for traditional personal loans
- Be a U.S. citizen, a permanent resident, or living in the U.S. on a valid visa
- Be at least 18 years old (19 in Alabama and some other states)
- Give a working email address
- Provide valid bank account details
- Confirm a sufficient monthly income to cover your loan payments
- Origination fees: 1.85% to 9.99%
- Late payment fees: $10
- Non-sufficient funds fees: $10 per payment returned
- No prepayment penalties
- Multiple rate discounts
- Next-day funding
- The due date may be changed
- Direct payments for debt consolidation
- APRs may be high
- Origination fees are charged
- Late fees may be applied
Fair-credit borrowers who need the money quickly
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Provide your bank account information and social security number
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Provide an active email address and phone number
- Optional fees (up to 6%)
- Low interest rates
- Co-applicants are allowed
- No prepayment penalties
- Flexible loan amounts
- Interest rate discounts are available
- Multiple repayment options
- No origination fee
- Good credit is required for better loan terms
- Hard credit check if you continue your application
- Late fees might apply
- No co-signer option available
- No physical branches
Applicants with good to excellent credit scores who want to consolidate debt, make major purchases, or cover their long-term needs.
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Provide your bank account information
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Have fair credit (at least 640)
- Provide an active email address and phone number
- Origination fees of up to 9%
- $15 late fee
- $15 NSF fee
- Low annual percentage rate
- No prepayment penalties
- Wide range of available loan amounts
- Same-day funding under some circumstances
- Accessible for fair credit borrowers
- High origination fee (up to 9%)
- Hard credit checks when you select your loan to move forward
- No cosigners are allowed for joint loans
- It is not available in all states
- Limited repayment options set at either 36 or 60 months
Fair credit borrowers who need to cover various personal needs
- At least 18 years also
- Permanent US resident
- Income confirmation
- Valid bank account or debit card
- Origination fees: 1% to 10%, or $25 to $500, depending on the state
- Late payment fees: $5 to $30, or 1.5% to 15% of your loan amount
- Non-sufficient funds fees: $10 to $50 per payment returned
- Joint and secured loans are available
- Wide range of loan options for low credit
- Pre-qualifying doesn’t affect your credit score
- Convenient options for debt consolidation
- Relatively high interest rates
- Charges origination fees
- APRs are not disclosed when pre-qualify
- Not available in all states
Borrowers with credit issues who want to avoid predatory lenders.
What Are Bad Credit Medical Loans?
A bad credit medical loan is a type of unsecured personal loan that helps people with a less-than-perfect credit history cover medical expenses. These personal loans allow you to get fast cash and repay it in monthly installments. Medical loans usually have flexible repayment terms and fixed interest rates. As they have more lenient eligibility requirements than other unsecured loans, they typically come with higher interest.
In addition to standard medical procedures, medical loans can be used for:
- Dental care
- Cosmetic surgery
- Mental health treatments
- Pet care
- IVF and fertility treatments
- LASIK, etc.
How Do Bad Credit Loans For Medical Procedures Work?
Bad credit loans for medical procedures work similarly to any other personal loan. Loan amounts are transferred directly to a borrower’s bank account within one to three business days. Then, you need to repay the funds in equal monthly payments over several months to a couple of years. In addition to the initial loan amounts, you need to pay interest rates. Lenders may also apply extra fees.
Before covering a medical expense with this personal loan, ensure you understand the following factors:
Interest Rates
Like with any other personal loan, you need to pay an interest rate in addition to the initial medical loan amount. Interest charges typically vary between 5.99% and 35.99% APR (annual percentage rate). Your APR significantly depends on your credit score. The higher your credit, the lower the interest you get.
Fees
Many lenders may charge you origination fees ranging from 1% to 10% of total loan amounts. There may also be late payment fees, NSF fees, prepayment penalties, and other costs lenders charge under certain conditions. It is crucial to understand your potential fees to avoid any surprises.
Loan Amounts
Various loan providers can offer different medical loan amounts. In most cases, they range from $1,000 to $50,000. However, some lenders can lend you up to $100,000. The higher your credit score and income, the larger the loan amount you can get.
Repayment Terms
Repayment terms for medical loans vary depending on the lender. In most cases, you need to return the debt within 12-84 months. Making higher monthly payments can help you repay your loan earlier and save money on interest.
Medical Loan Cost Examples
Suppose that you’re going to borrow $10,000 to pay for a medical procedure. Here’s how your borrowing cost will change depending on the interest rate offered and the repayment period chosen:
| APR | Repayment Term | Monthly Payment | Total Loan Cost | Total Interest Paid |
|---|---|---|---|---|
| 7.14% | 36 months | $309.41 | $11,138.81 | $1,138.81 |
| 7.14% | 60 months | $198.67 | $11,920.39 | $1,920.39 |
| 12.6% | 36 months | $335.02 | $12,060.58 | $2,060.58 |
| 12.6% | 60 months | $225.49 | $13,529.3 | $3,529.3 |
| 24.3% | 36 months | $393.91 | $14,180.6 | $4,180.6 |
| 24.3% | 60 months | $289.42 | $17,365.42 | $7,365.42 |
Your particular loan terms may differ from the advertised ones provided in the table above. Use our loan calculator to figure out how much your specific loan will cost based on the terms offered to you by a lender:
Loan calculator
ESTIMATED MONTHLY PAYMENT
TOTAL LOAN AMOUNT PAID
TOTAL INTEREST PAID
TOTAL COST OF LOAN
How To Compare Medical Loan Lenders For Bad Credit?
To get medical financing at the best terms, you need to shop around and compare different lenders and their offers. While the selection of medical loans for bad credit is smaller than that for a good or excellent credit score, it is still possible to find personal loan providers who can offer you reasonable loan conditions. Pay attention to the following factors when choosing a provider:
- APR. An annual percentage rate is the cost of borrowing with interest and fees. It can significantly affect the total loan cost, so compare APRs from different lenders to choose the cheapest option.
- Loan terms. Many medical loans for bad credit have shorter repayment periods than traditional personal loans. It means that you need to make larger monthly payments to return your debt. Be sure you can afford to pay these amounts before borrowing.
- Qualification requirements. Eligibility criteria vary by lender. While most personal loans require a good credit score, you can still find online loan providers with lower minimum requirements. Many lenders also offer pre-qualification that allows you to check your approval chances and potential terms without impacting your credit score.
- Funding speed. The deposit speed is a key factor if you need to pay for medical costs fast. While traditional banks usually require a few days to transfer the loan funds, many online lenders offer same-day deposits.
- Lender’s reputation. It is essential to read reviews about the lenders you compare to learn about other customers’ experiences with them. You can also ask your friends and family for recommendations.
- Extra features. Some lenders allow you not only to take out medical loans for bad credit but also provide you with specific benefits. There can be various discounts such as lower interest for autopay, flexible repayment schedules, etc.
- Customer support. Getting fast answers to your questions is incredibly essential, especially if you’re new to borrowing. Pay attention to the lenders offering professional customer support with prompt responses.
How To Increase Your Approval Chance For A Medical Loan?
Getting a medical loan for bad credit is not always affordable and can come with high interest rates. To increase your chance to get a loan with reasonable APRs and favorable terms, follow these practical steps:
Improve Your Credit Score
Many lenders have strict minimum credit score requirements, making it challenging to get approved with bad credit. Therefore, you should work on improving your credit score to get better borrowing conditions.
Apply For A Secured Loan
Unsecured loans are often more difficult to get with less-than-perfect credit. Consider offering collateral to your lender to increase your approval chances. Secured loans for bad credit will make you a less risky borrower and can help you secure more favorable terms and lower interest rates.
Find A Cosigner
Applying for a personal loan with a cosigner is an excellent option for borrowers who don’t meet the minimum credit score requirements. By adding a guarantor with strong credit and high income to your loan application, you can significantly increase your approval chances. Your co-signer will be responsible for loan repayment if you default, providing an extra repayment guarantee for a lender.
Check Your Credit Report
One of the potential reasons for your low credit score may be errors in your credit report. Therefore, you should check it carefully and dispute any mistakes immediately.
Alternative Ways To Cover Medical Costs
Although a medical loan is a common way to pay for medical expenses, it is not the only option available for bad credit borrowers. If you don’t meet the lenders’ minimum credit score requirements or find loans too expensive, consider the following options:
Payment Plan
Many medical providers offer payment plans to help their patients cover their medical bills. These plans allow you to pay your bill in monthly installments, often with no interest. Although this option does not always work, it still makes sense to ask your hospital or doctor for a repayment plan.
Credit Union Loan
Loans from credit unions are usually more affordable than loans from banks and online lenders. These not-for-profit organizations offer financial support with interest rates of about 18% APR. However, to apply for credit union loans, you need to be a member of the financial institution.
Family Loan
Borrowing from your friends or family members is the safest financing option. They don’t check your credit score and don’t charge any fees or interest. However, you can hurt relationships with your close people if you fail to repay the money.
Medical Credit Cards
Medical credit cards are designed specifically for medical expenses. They usually come with no interest rates for certain sums or within a specific period but charge you interest for an outstanding balance once the grace period ends. CareCredit is the most popular example of these cards. It is accepted by more than 260,000 health providers.
Nonprofit Assistance
Various nonprofit organizations, like the Patient Advocate Foundation and the National Organization for Rare Disorders, can help you finance your urgent expenses, including medical procedures.
Why BadCredify
At BadCredify, we make comparing different loan deals fast and easy to provide you with the option that best aligns with your financial goals. We streamline the entire process, allowing you to get personalized loan terms from lenders who are ready to help you in a matter of minutes. This process doesn’t affect your credit rating.
We also perform unbiased analyses of lending websites and take into account multiple factors. We remain impartial in our evaluations, meaning that the lenders we review can’t approve or change the information we share.
Our team of experts wants to help you boost your financial future. Therefore, they share professional advice and guides on borrowing money, managing debts, saving funds, and handling your personal finances. We are here to make this financial journey simple for you. Complete our quick form, compare offers, learn more about the lenders, and find out how to choose the right loan option – all this in one place.
FAQ
When should I apply for medical loans?
Medical loans are an excellent solution if you don’t have insurance or an emergency fund to cover a medical procedure. They can help you pay your costly medical bills.
How to qualify for medical loans?
To qualify for medical loans, you need to be at least 18 years old, reside in a state where the lender operates, be a US permanent resident or legal citizen, and provide proof of stable income. Additionally, you may be asked to meet certain minimum credit score requirements. Lenders may also look at your income lever, debt-to-income ratio, and employment status.
Can I get a medical loan for bad credit?
Yes, you can obtain medical loans for bad credit. However, the lower your credit, the higher rates you may get. Avoid taking high-interest loans so as not to get into a cycle of debt.
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