There’s no doubt that medical costs are skyrocketing. According to the Bureau of Labor’s Consumer Price Survey, healthcare costs have jumped almost 5% a year since 1985.
A medical loan is just any personal loan you use to pay off medical expenses. Since personal loans are unsecured, you don’t need collateral and don’t have to worry about losing your home if you can’t pay.
If you have bad credit, usually defined as a credit score under 680 FICO, then you’ll need to look around for companies designed for bad credit loans.
What Types of Medical Expenses Can You Pay with a Loan?
Since it’s a personal loan, you can use the money for any purpose. There are no restrictions on using the money and you can even use it for something else if you end up not going through with the procedure.
Bad credit borrowers will have the best luck on PersonalLoans.com and Upstart while good credit borrowers may find better rates on SoFi or Lending Club.
Interest rates on medical loans can be expensive, especially for bad credit borrowers, so I always recommend you look for other ways to pay for medical bills.
There are some alternatives to medical loans you should consider: 1. Mortgages or HELOC 2. Car Refinancing 3. Get a Side Hustle