Last Updated on November 8, 2023 by Lori Pace
A loan for medical expenses is available to consolidate medical debt, pay an emergency, or for the cost of medical procedures. No matter how well or sick, all people have to pay for medical expenses. It can quickly rise to a high level when it’s an emergency. Unfortunately, medical insurance is not always enough to cover all costs.
About 45 million Americans are behind on their medical debt. This has slowed down individual spending over the past several decades. These medical expenses do not have to break the bank. You can either get a loan or apply for grants to pay for medical expenses.
Pre-Qualification Process for Medical Expenses Loans
Unsecured personal loans used for medical expenses are called medical loans. The most expensive way of covering medical costs is through medical loans. To qualify for the lowest interest rates, you will need good credit. Medical loans should only be considered after all other options have been exhausted.
Pre-qualifying is an important step in the loan approval process because it gives lenders a preview about your creditworthiness, and lets you see the amount you may receive. However, this does not guarantee you a loan. Final approval will require additional information. These are the steps that you will need to follow during pre-qualification.
- A pre-qualification form must be completed. It will include details about your occupation, income, and current debt.
- The lender will then evaluate your credit score, history, and other financial information.
- The pre-qualification can then be denied or granted. If you are granted, you will be informed about the amount and rate of the loan you might receive.
- Accept or decline the pre-qualified offer. Accepting the offer is binding. You can appeal for a personal loan that needs additional information and attestation.
Where to Get Loan for Medical Expenses?
Personal loans are often used to finance medical expenses. A personal loan can be applied for at any bank, credit union or online lender. So, you should do your research about all the available loan options.
Before applying for a personal loan to pay medical bills, make sure you understand the restrictions of your lender. Below are the top options for loans to pay medical bills. Let’s compare the various lenders to find the best medical loan for you.
Citizens Bank
It is one of the oldest banks that provides credit and banking services. However, they prefer borrowers with a strong credit history.
Highlights
- Lending term: 3-7 years
- Loan amount: $ 5,000 – $ 50,000
- Minimum income requirement – $ 24,000
- There are no origination fees or administrative charges
- Prepayment and late payments are not subject to penalties
- Fixed interest rates are available
- They allow cosigners
FreedomPlus
FreedomPlus requires a minimum credit score higher than other lenders; they also don’t limit the use of their loans. This means that there are no lengthy explanations.
Highlights
- Lender term: 2-5 years
- Maximum loan amount: $ 10,000 – $ 35,000
- Credit score minimum requirement: 700
- Origination fees can reach up to 5%
- Fixed interest rates are available
- Within 48 hours, you will receive your money
- Advance payments are exempt from the penalty
- They allow cosigners
LendingPoint
LendingPoint is one lender that offers loans to visa holders and immigrants but requires proof of social security. They offer bi-monthly payments to help you manage your finances. This means that the borrower pays the bi-monthly fees, not the monthly.
Highlights:
- Lender term: 3-4 years
- Maximum loan amount: $ 2,000 to $ 25,000.
- Credit score minimum requirement: 600
- Minimum Income Requirement: $ 20,000
- Origination fees can reach up to 6%
- In less than a day, you can get your money
- There are no penalties for prepayments or administrative fees
- Does not allow cosigners
Stilt
Stilt is a single lender that provides loans to non-residents, visa holders and immigrants. To be eligible for a loan to pay for medical expenses, you don’t need a credit score or a green card. You must be employed and have a bank account in America.
Highlights
- Lending term: 6 months to 2 years
- Maximum loan amount: $ 1,000 – $ 25,000
- There are no credit requirements
- There are no origination fees, prepayment penalties or administrative fees
- You don’t need a green card nor a social security number to apply.
- It is not permissible to have cosigners
Conclusion about Loan for Medical Expenses
You may be eligible for a loan to cover medical expenses, so do your research thoroughly. You will be able to take care of your medical expenses once you have found the right provider for a medical loan.
