What is a medical loan and how does it work?
If you need money to pay for a medical procedure, a medical loan can help cover the cost. Learn more about medical loans and how they work. (iStock) Your health is priceless. But health care can be expensive, and if you get sick, medical bills can really add up. While health insurance will typically cover a portion of your care, you may have to come up with any remaining balance. A medical loan can help you pay for a variety of medical expenses. Keep reading to learn more about medical loans and how to apply for one. With Credible, you can compare personal loan rates from various lenders in minutes. A medical loan is a type of personal loan that you use specifically to finance medical costs, such as surgeries, routine medical procedures and ER visits. You can also use a medical loan to consolidate medical debt or pay high health insurance deductibles. Most medical loans are unsecured, meaning you don’t need collateral to get the loan. But because they’re unsecured, you may need good credit to qualify. If your credit is fair or poor, a lender may require you to put up collateral to secure the medical loan. You can find a medical loan at banks, credit unions and online lenders. Loan amounts vary from one lender to the next, but you can typically borrow anywhere from $2,000 to as much as $100,000 in some cases. With Credible, you can compare personal loan rates from various lenders in minutes. You can use a medical loan to cover copays, high deductibles and other procedures, including: Keep in mind that medical loans don’t cover every type of procedure, so check with the lender before you apply to see if its personal loans cover the procedure you need. As with most financial products, a medical loan has both advantages and disadvantages to consider. You can use Credible to compare personal loan rates, and it won’t affect your credit score. If you decide that a medical loan is right for you, follow these steps to apply: After you apply and are approved for a loan, you’ll typically receive the funds within one to seven business days. When you’re ready to apply for a medical loan, Credible lets you easily compare personal loan rates. When you apply for a medical loan, lenders do a hard pull of your credit profile to see how you’ve handled credit in the past. A hard credit inquiry can temporarily lower your credit score by a few points. Too many hard credit pulls, recent applications, or new credit in a short period of time can negatively affect your credit, because lenders view you as a riskier borrower. But if you apply for prequalification for a loan, lenders do a soft credit pull, which doesn’t affect your credit score. If your credit is less than stellar or you’re worried about a long-term loan commitment, consider these medical loan alternatives: Every medical procedure has a specific billing code. Providers use these codes when submitting claims to insurance companies. Because there are thousands of codes, mistakes happen. Review your bill and call your provider’s billing department if you suspect a mistake — you may be able to lower or even remove a charge. Credit card companies often offer 0% APR credit cards as an incentive to apply for a card. The 0% interest offer is usually only good for a limited time, followed by double-digit interest rates after the promotional period ends. But if you use a 0% interest card for medical purchases and can pay the balance off in full before the promotion ends, you won’t pay any interest. You can use a medical credit card to pay for eligible medical and dental expenses, and sometimes even pet visits to your veterinarian. But not all medical expenses are eligible, and these cards may only be accepted by participating health care providers. Before you apply for a medical credit card, make sure your provider accepts the card and that your procedure is covered. Most health care providers offer some type of payment plan, and some will even allow you to pay your medical bills interest-free. Contact your provider’s billing department to see if they offer a payment plan that will work for you. Source: Read Full ArticleWhat are medical loans and how do they work?
What can I use a medical loan for?
Pros and cons of medical loans
Pros of medical loans
Cons of medical loans
How to apply for a medical loan
Will getting a medical loan hurt my credit?
Alternatives to medical loans
Check your bill for any errors
0% interest credit card
Medical credit card
Payment plan with your health care provider