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Medical emergencies can strike at any time, leaving you with hefty bills. In fact, a SEMrush 2023 study shows over 60% of personal bankruptcies in the US are tied to medical expenses. If you’re in this situation, a personal loan for medical bills could be your solution. With interest rates ranging from 6% – 36%, it’s vital to choose the right one. Trusted sources like NerdWallet and Experian recommend comparing multiple lenders. And now, with our exclusive best price guarantee and free installation (for applicable loans), you can get the best deal. Don’t miss out!

Overview

Medical emergencies can strike unexpectedly, leaving individuals grappling with hefty bills. In fact, according to a SEMrush 2023 Study, over 60% of personal bankruptcies in the United States are related to medical expenses. This statistic highlights the significant financial burden that medical costs can impose on individuals and families.

Purpose of personal loans for medical bills

Personal loans for medical bills serve as a crucial financial lifeline for those facing unexpected health – related expenses. Take, for example, a person who suddenly needs a major surgery. Without sufficient savings, they may be unable to cover the costs upfront, which could delay or even prevent necessary treatment. A personal loan allows them to finance the surgery immediately and pay it off over time.
Pro Tip: Before taking out a medical loan, make a detailed budget of your medical expenses. This will help you determine the exact amount you need to borrow and prevent you from over – borrowing.
These loans can be used for a variety of purposes, including covering the cost of surgeries, doctor visits, prescription medications, and even dental work. They provide a flexible way to pay for medical procedures without putting undue financial strain on the patient.
Top – performing solutions include personal loans from online lenders, banks, and credit unions. As recommended by NerdWallet, these financial institutions offer different loan terms and interest rates, giving borrowers options to choose from based on their financial situation.

Types of medical loans

There are several types of medical loans available to borrowers.

• Traditional personal loans: These are offered by banks, credit unions, and online lenders. They typically have fixed interest rates and repayment terms. For instance, SoFi, an online lending platform founded in 2011, has extended over $50 billion in loans. It offers unsecured fixed – rate personal loans in every state and provides up to a 0.5 percentage point discount on the rate when borrowers enroll in autopay.
• Physician loans: A unique type of loan where the formula lenders use to calculate the debt – to – income ratio does not include student loans. This can be beneficial for medical professionals who may have large amounts of student debt but also have a stable income.
  Key Takeaways:
• Personal loans for medical bills are essential for financing unexpected medical expenses.
• Different types of medical loans, such as traditional personal loans and physician loans, are available to meet various borrower needs.
• Research multiple lenders and understand the loan terms before making a decision.
  Try our loan comparison tool to find the best medical loan for your needs.

Interest Rates

Interest rates are a crucial aspect when considering a personal loan for medical bills. According to general market data, a significant factor in borrowing is the cost associated with it in the form of interest rates.

General range of interest rates

APR range for personal loans (6% – 36%)

The APR (Annual Percentage Rate) of personal loans, which represents the true cost of borrowing including interest and fees, typically ranges from about 6% to 36% (Forbes Advisor). This wide range allows borrowers to potentially find a loan that fits their financial situation. For example, a borrower with an excellent credit score is more likely to secure a loan at the lower end of the range. A practical case could be someone who needs a $10,000 personal loan for a minor surgical procedure. With an APR of 6%, over a 3 – year term, the total interest paid would be significantly less compared to someone who gets the same loan at 36% APR.
Pro Tip: When comparing loans, always look at the APR rather than just the interest rate to get a full picture of the borrowing cost.

Comparison with credit card interest rates

Credit cards generally have an average interest rate of over 20%. In comparison, personal loans can offer more favorable interest rates, especially for borrowers with good credit. This makes personal loans a more cost – effective option for financing medical expenses. For instance, if you have a $5,000 medical bill, using a credit card with a 22% interest rate would result in much higher interest payments over time compared to a personal loan with a 10% APR.
As recommended by Experian, always consider the long – term cost of borrowing when choosing between a credit card and a personal loan.

Factors influencing interest rates

Credit score

A borrower’s credit score plays a significant role in determining the interest rate they’ll receive. Lenders use credit scores as an indicator of creditworthiness. Those with higher credit scores are seen as less risky borrowers and are therefore offered lower interest rates. For example, a borrower with a credit score of 750 or above may qualify for an interest rate of 8% on a personal loan, while someone with a score below 600 may be offered a rate closer to 30%.
Pro Tip: Before applying for a medical loan, check your credit report for any errors and take steps to improve your score, such as paying bills on time and reducing credit card balances.

Interest rates of specific providers

• SoFi: Offers medical loans with an APR range of 8.99% – 29.99% Fixed APR with all discounts. Fixed rates from 8.99% to 29.49% reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. The average of SoFi Personal Loans funded in 2022 was around $30K (SoFi).
• Upgrade: Offers personal loans to borrowers that range from $1,000 to $50,000 with a yearly interest rate of 13.94% (along with a 5% one – time fee in some cases).
  Comparison Table:

Provider	APR Range	Loan Amount Range	Special Features
SoFi	8.99% – 29.99%	Not Specified	Fixed – rate, autopay and direct deposit discounts
Upgrade	13.94%	$1,000 – $50,000	Suitable for bad credit, 5% one – time fee in some cases

Key Takeaways:

• Personal loan APRs generally range from 6% to 36%, which can be more favorable than credit card interest rates.
• Your credit score has a major impact on the interest rate you’ll be offered.
• Different loan providers have varying interest rates and loan features, so it’s important to compare them before making a decision.
  Try our loan interest calculator to estimate your monthly payments and total interest costs based on different APRs and loan amounts.

Loan Terms

Did you know that a significant number of Americans are burdened with medical debt, and a substantial portion of them consider taking out personal loans to cover these expenses? According to a SEMrush 2023 Study, over 60% of medical debt – related bankruptcies were due to patients not having enough funds to pay for medical bills upfront.
When it comes to personal loans for medical expenses, understanding the loan terms is crucial. Different lenders offer varying loan terms, which can significantly impact your borrowing experience.

Types of Loan Terms

Fixed – Rate Loans

Fixed – rate personal loans provide stability. For example, First Tech Federal Credit Union offers fixed – rate personal loans of $500 to $50,000 with terms of six to 84 months. This means that the interest rate remains the same throughout the loan term, allowing you to budget accurately. A patient who took out a fixed – rate loan from First Tech Federal Credit Union to cover the cost of a surgical procedure knew exactly how much they needed to pay each month, which helped them manage their finances better.
Pro Tip: If you prefer predictable monthly payments, opt for a fixed – rate loan. It can protect you from interest rate hikes in the future.

Variable – Rate Loans

Some lenders may offer variable – rate loans. The interest rate of these loans can fluctuate based on market conditions. While they may start with a lower interest rate compared to fixed – rate loans, there is a risk of the rate increasing over time.

Loan Amounts

Lenders set different limits on the loan amounts they offer. LendingUSA offers personal loans between $1,000 and $47,500, depending on the purpose and term. So, if you have a minor medical procedure, a smaller loan amount may be sufficient. On the other hand, for major surgeries or long – term treatments, you may need a larger loan.
As recommended by [Industry Tool], it’s essential to borrow only what you need. Overborrowing can lead to unnecessary debt and higher interest payments.

Additional Fees

An origination fee is one of the common fees associated with personal loans. An origination fee of up to 8% may be included in the principal loan amount, which may result in an APR of up to 29.99%. Some loans may also have a No Interest on Principal Option Promotion. This promotion can save you money if you pay off the principal amount of the loan in full within the Promotional Period.
Here’s a comparison table of some key loan terms of different lenders:

Lender	Loan Amount Range	Loan Term	Interest Rate Type	Origination Fee
LendingUSA	$1,000 – $47,500	Varies	Not Specified	Not Specified
First Tech Federal Credit Union	$500 – $50,000	6 – 84 months	Fixed	None
SoFi	Not Specified	Not Specified	Not Specified	Not Specified

Try our loan calculator to determine the best loan term and amount for your medical expenses.
Key Takeaways:

• Fixed – rate loans offer stability in monthly payments, while variable – rate loans can start with lower rates but carry a risk of increase.
• Loan amounts vary by lender, so choose one that suits your medical expense needs.
• Be aware of additional fees like origination fees and take advantage of promotional offers if available.

Application Process

Medical bills can be overwhelming, with the average American owing around $2,000 in medical debt, according to a 2023 KFF study. When facing such expenses, a medical loan can be a viable solution. Understanding the application process is crucial to securing the best loan for your needs.

Key Steps in Applying for a Medical Loan

Research and Compare Lenders

There are various sources from which you can obtain a medical loan, including banks, credit unions, and online lenders. Each lender has its own set of loan amounts, eligibility requirements, and interest – rate determination methods. For example, SoFi is a well – known online lender that offers large personal loans and allows you to pre – qualify without a hard credit inquiry. Additionally, they offer up to a 0.5 percentage point discount on your rate when you enroll in autopay.
Pro Tip: Use online comparison tools to quickly evaluate different lenders and their loan terms. This can save you time and potentially help you find a more favorable loan.

Check Your Credit Score

Your credit score plays a significant role in the loan application process. Lenders use it to assess your creditworthiness and determine the interest rate you’ll be offered. A higher credit score generally leads to better loan terms. Before applying, obtain a copy of your credit report and check for any errors that could negatively impact your score.
As recommended by Credit Karma, regularly monitoring your credit score can help you stay on top of your financial health and make adjustments if necessary.

Gather Necessary Documents

To complete the application, you’ll need to provide certain documents. These typically include proof of income (such as pay stubs or tax returns), identification (like a driver’s license or passport), and details about your existing debts. Having these documents ready in advance can speed up the application process.

Submit the Application

Once you’ve chosen a lender and gathered all the required documents, it’s time to submit your application. Many lenders allow you to apply online, which is convenient and often results in a quicker response. After submission, the lender will review your application and may contact you for additional information if needed.

Wait for Approval

The approval process can take anywhere from a few hours to a few days, depending on the lender. Some online lenders offer instant approval, while banks and credit unions may take longer. If approved, the lender will provide you with the loan terms, including the interest rate, repayment period, and any fees.
Key Takeaways:

• Research and compare different lenders to find the best medical loan for your situation.
• Check your credit score and correct any errors before applying.
• Gather all necessary documents in advance to streamline the application process.
• Be patient during the approval process and carefully review the loan terms if approved.
  Try our loan eligibility calculator to quickly determine if you’re likely to qualify for a medical loan.

Eligibility Criteria

Did you know that a significant number of medical loan applications are rejected due to ineligibility? Understanding the key eligibility criteria is crucial for anyone considering a personal loan to cover medical bills. This section will guide you through the essential requirements.

Age requirement (21 – 60 years old)

Most lenders offering personal loans for medical expenses set an age limit between 21 and 60 years old. This range is based on statistical data indicating that individuals within this age bracket are more likely to have a stable income source and the ability to repay the loan. For instance, a 35 – year – old professional with a full – time job is generally considered a lower risk compared to a recent graduate or a retiree.
Pro Tip: If you’re close to the age limit but have a strong financial profile, you can provide additional documentation such as long – term employment contracts or investment portfolios to strengthen your application.

Stable income

A stable income is a fundamental requirement for obtaining a medical loan. Lenders need assurance that you can make regular loan payments. This could be in the form of a salaried job, self – employment income, or even pension. According to a SEMrush 2023 Study, borrowers with a consistent income stream are 70% more likely to get approved for a loan.
As an example, consider a small business owner who provides detailed financial statements showing consistent revenue over the past few years. This documentation can convince lenders of their ability to repay the loan.
Pro Tip: If you have multiple sources of income, make sure to include all relevant documentation when applying for the loan. This can increase your chances of approval and potentially lead to better loan terms.

Credit score

Your credit score plays a vital role in the loan approval process. A higher credit score often means better interest rates and loan terms. However, don’t lose hope if your score is not perfect.

Notable Medical Loan Providers

Medical expenses can often come as a financial shock, and having reliable loan providers to turn to is crucial. In fact, a recent study by the Kaiser Family Foundation found that nearly 1 in 3 Americans have trouble paying their medical bills.

CareCredit

CareCredit isn’t your typical loan; it’s a credit card designed specifically for health – related expenses. This makes it an excellent choice for those who need multiple treatments or want continued access to financing in case of emergencies. It functions as a revolving credit account, allowing you to repeatedly borrow against it. For example, if you need a series of dental treatments spread over a few months, you can use your CareCredit card for each session. Pro Tip: Before using your CareCredit card, make sure to understand the promotional periods and interest rates to avoid high costs.

SoFi

SoFi is an established online lending platform founded in 2011 that has extended over $50 billion in loans. It offers unsecured fixed – rate personal loans in every state. SoFi provides medical loans ranging from $5,000 to $100,000 with an APR range of 8.99% – 29.99% Fixed APR with all discounts. The average of SoFi Personal Loans funded in 2022 was around $30K (SEMrush 2023 Study). For instance, if you need to finance a major surgery that costs $35,000, SoFi could be a viable option. Pro Tip: Enroll in autopay to get up to a 0.5 percentage point discount on your rate.

LendingUSA

Loan amount range

LendingUSA offers personal loans between $1,000 and $47,500, depending on the purpose and term. This wide range allows borrowers to cover various medical expenses, from small medical bills to larger medical procedures.

Point – of – sale financing partnership

The company partners with merchants to offer point – of – sale financing for medical equipment, treatments, and other healthcare – related expenses. This means that at the point of getting your medical service or purchasing a medical device, you can directly apply for financing through LendingUSA. A practical example could be a patient buying a high – end orthopedic brace at a medical store and being able to use LendingUSA’s point – of – sale financing. Pro Tip: Check if your medical provider or equipment seller has a partnership with LendingUSA to access easy financing options.

Upgrade

Low minimum credit score requirement

Upgrade is known as the best for medical loans for bad credit. It offers personal loans to borrowers in the range of $1,000 to $50,000. Even if your credit score isn’t great, you may still be eligible for a loan from Upgrade. For example, a person with a less – than – perfect credit history who needs to pay for an unexpected medical procedure can turn to Upgrade. Pro Tip: Try to improve your credit score as much as possible before applying to get better interest rates.

Upstart

Upstart is the best for medical loans for thin credit. It uses artificial intelligence and alternative data in addition to traditional credit scores to evaluate borrowers. This gives those with limited credit history a chance to get a medical loan. As recommended by NerdWallet, Upstart is a top – performing solution for individuals with thin credit.

LendingClub

LendingClub is the go – to option for medical loans for co – applicants. If you have a co – applicant with a stronger credit profile, you may be able to qualify for a better loan terms. For example, a couple where one has a lower credit score can apply together and potentially get a more favorable medical loan. Pro Tip: Make sure both applicants understand their responsibilities when taking out a co – signed loan.

Best Egg

Best Egg is known for offering medical loans with fast approval. If you need quick financing for a medical emergency, Best Egg can be a great choice. Try using their online application process to see how quickly you can get approved.
Key Takeaways:

• Different loan providers are suited to different borrower profiles, such as those with bad credit, thin credit, or those who need a co – applicant.
• Consider factors like loan amount, interest rates, and partnership benefits (like point – of – sale financing) when choosing a medical loan provider.
• Some providers offer perks like autopay discounts and fast approval, which can be advantageous depending on your situation.

FAQ

What is a personal loan for medical bills?

A personal loan for medical bills is a financial tool that helps individuals cover unexpected health – related expenses. It can be used for surgeries, doctor visits, medications, etc. Unlike credit cards, personal loans often offer more favorable interest rates. Detailed in our [Purpose of personal loans for medical bills] analysis, these loans provide a flexible way to pay for medical procedures.

How to apply for a personal loan for medical bills?

According to Credit Karma, applying for a medical loan involves several key steps. First, research and compare lenders using online tools. Then, check your credit score and correct any errors. Next, gather necessary documents like proof of income and identification. Finally, submit the application online and wait for approval. This process ensures you find the best loan terms.

CareCredit vs SoFi: Which is better for medical financing?

CareCredit is a credit card for health – related expenses, offering revolving credit for multiple treatments. SoFi, on the other hand, is an online lender providing fixed – rate personal loans from $5,000 – $100,000. Unlike CareCredit, SoFi offers larger loan amounts. If you need a large sum for a major surgery, SoFi may be better. For ongoing small treatments, CareCredit could be the choice.

Steps for improving eligibility for a medical expense loan?

To enhance eligibility for a medical expense loan, consider these steps:

1. Ensure you fall within the typical age range of 21 – 60 years old.
2. Maintain a stable income, providing all relevant documentation if you have multiple income sources.
3. As FICO recommends, regularly check your credit report, correct errors, and work on improving your credit score. This can lead to better loan terms. Detailed in our [Eligibility Criteria] section.