Loan for medical expenses can be used to consolidate existing medical debt, pay for an emergency, or cover medical procedures. Medical expenses affect everyone, sick or well. They can get very high very quickly when it is an emergency. And unfortunately, even though much is paid for medical insurance in the U.S., insurance often doesn’t cover all the expenses.
Around 45 million Americans are overdue on their medical debt. It has depressed individual spending power for the past few decades. However, these medical expenses don’t have to break the bank. A loan for medical expenses can help.
Loan for Medical Expenses – Pre-Qualification Process
Medical loans are unsecured personal loans applied for medical expenses. Medical loans are the most expensive way to cover medical costs, you must have the outstanding credit to qualify for the lowest rates. Therefore, medical loans should be considered after other options are exhausted.
In the loan approval process, pre-qualifying is a preliminary step. It gives lenders a preview of your creditworthiness and allows you to preview the loan amount that you might receive. However, getting pre-qualified does not guarantee you a loan; final approval needs further information and verification. The pre-qualification process usually involves the following steps:
- You are required to fill a pre-qualification form, sharing details such as your occupation, income, and existing debt.
- The lender then assesses your credit score and history.
- Your pre-qualification is then either denied or granted. If granted, you’ll receive information about the loan amount you may receive, including the rate.
- You can accept or reject the pre-qualified offer. If you accept, you can formally appeal for a personal loan that requires further information and attestation.
Where to Get Loan for Medical Expenses?
A loan for medical expenses often come in the form of personal loans. One can apply for a personal loan at a traditional bank, a credit union, or at an online lender. It is worth doing proper research on the different loan options out there.
While researching and before applying for a personal loan for medical expenses, be sure to check and understand your lender’s specific restrictions.
To help with the decision-making process, below are some of the best options to get loans for medical expenses. Get the best medical loan as per your situation by making a proper comparison between the different lenders.
It is one of the most traditional banks providing banking and credit services. Their focus is on borrowers with solid credit history and prefers U.S. citizen or permanent resident borrowers.
Some of the highlights of Citizens Bank:
- Loan duration: 3 to 7 years
- Loan amounts: $ 5,000 to $ 50,000
- Minimum income requirement – $ 24,000
- No origination or administrative fees
- There are no penalties for prepayment or late payment
- Fixed interest rates apply
- Cosigners are allowed
For more information, visit https://www.citizensbank.com/HomePage.aspx.
FreedomPlus requires a higher minimum credit score as compared to other lenders. The great thing about FreedomPlus is that they do not have a limit on the purpose their loans can be used for. It means no lengthy explanations are required.
Some of the FreedomPlus highlights:
- Loan duration: 2 to 5 years
- Loan amounts: $ 10,000 to $ 35,000
- Minimum credit score requirement – 700
- Expect origination fees of up to 5%
- Fixed interest rates apply
- Receive your money within 48 hours
- No penalty for advance payment
- Cosigners are allowed
LendingPoint is one of the few lenders offering loans to immigrants and visa holders. However, they do require a valid social security number. LendingPoint has bi-monthly payments that help you manage your budget. It means that the borrowers are responsible for the twice-monthly fees, unlike the monthly payments.
Some of the highlights of LendingPoint:
- Loan duration: 3 to 4 years
- Loan amounts: $ 2,000 to $ 25,000
- Minimum credit score requirement – 600
- Minimum Income Requirement: $ 20,000
- Expect origination fees of up to 6%
- Get your money within a day
- No penalties for prepayment or administrative costs
- Cosigners not allowed
For more information, visit https://www.lendingpoint.com/apply/#/Start.
Stilt is a single lender that focuses on providing loans to immigrants, visa holders, and other non-residents. It does not require a credit score, green card, or social security number to be eligible for a loan for medical expenses. They require you to be employed, have a bank account in the United States, and hold one of the required visas.
Some of the highlights of Stilt:
- Loan duration: from 6 months to 2 years
- Loan amounts: $ 1,000 to $ 25,000
- No credit score requirements
- No origination fees, prepayment penalties, or administrative fees
- It does not require a green card or social security number
- Cosigners are not allowed
For more information, visit https://www.stilt.com/.
A loan for medical expenses can definitely help you cover the cost. Make sure you do your research properly. Once you find the right medical loan provider, you will be well on your way to taking care of your medical expenses.