It’s possible to accumulate thousands of dollars worth of unaffordable medical expenses in the United States, even if you have health insurance. One in four Americans struggle to afford their medical expenses, and half of the population has postponed or refused medical care because of cost. However, it is crucial to have both preventive care and emergency care; for individuals who are unable to pay for these expenditures upfront, medical loans can help with costs.
What is a medical loan?
In essence, a medical loan is a personal loan that is obtained specifically to pay for medical care. Medical expenses such as emergency treatments, IVF treatments, and elective surgery can all be covered by medical loans.
Since many medical loans are unsecured, you won’t have to put your house or anything else at risk in order to pay for your healthcare. However, those who have good credit and can obtain good interest rates are often best suited for unsecured personal loans for medical expenses.
You can also qualify for a secured medical loan if your credit isn’t excellent, particularly if you’ve previously had trouble paying your medical payments. The trade-off is that you’ll have to put up some kind of security, which you’ll forfeit if you can’t afford to pay back the loan. However, you’ll receive a significantly lower interest rate and have fewer obligations down the road.
How does a medical loan work?
You can apply for a medical loan online or in person at an in-store financial institution. Many lenders may allow you to prequalify, which is a process that determines your potential rates and conditions based on your fundamental financial data. A credit check, proof of income, and other details are needed in order to formally apply for the loan.
Depending on the lender, it may take up to a week to get the funds following approval. However, this timeframe can vary. Once you get the money, you must repay the loan in full by making fixed monthly payments, with interest applied to each installment.
What can you use your medical loan for?
In general, a medical loan can be spent in any way you want, pay medical bills or buy necessary medicines. Here are the most common categories for which a medical loan is used:
- Audiology services
- Bariatric surgery
- Cosmetic surgery
- ENT surgery
- Hair restoration surgery
- Laser hair treatment
- Laser eye surgery
- Sleep apnoea treatment
- Veterinary care for pets