In most cases, you need a credit score of at least 580 for a medical loan, since most medical loans are just general-purpose personal loans with a different name. This means that you may qualify for a medical loan with bad credit, but you'll need a higher rating to get a loan with a low APR and no opening fee. Borrowers can only choose between two repayment term options. You must have at least a 600 credit score to apply for a personal loan from Upstart.
However, the company also works with borrowers who don't have enough credit history to receive a rating. With a medical loan, you can access the funds you need for elective and emergency procedures. You may be able to save money by using a medical credit card or by negotiating with your healthcare provider. Some lenders that offer medical loans accept borrowers with poor credit, but you may receive a higher interest rate or a lower loan amount.
Medical loans are personal loans used to pay for health care costs, such as surgery, hospital bills, and dental care. However, if you're having trouble qualifying for a personal loan, OneMain Financial also offers secured loans, another possible option for borrowers with bad credit. To qualify for a medical loan, compare several lenders to understand their eligibility requirements for credit scores, income and debts. Some organizations offer financial aid or grants to pay medical bills, while others may connect you with providers of free or low-cost health care services.
When looking for medical loans, it's a good idea to get quotes from several lenders to make sure you find the personal loan that best suits your needs. Review your credit report to see your credit score and check for incorrect late payments or possible errors. Universal Credit accepts low credit scores and offers multiple opportunities for discounts on personal loan rates. Because medical loans usually have a fixed interest rate, you'll know exactly how much you owe each month.
That way, it offers an advantage over using variable-rate credit cards to pay medical bills. If you end up with several loans, you may want to consider medical debt consolidation to save interest and simplify repayment. Researchers at the University of Chicago estimate that only 8 million Americans have created crowdfunding campaigns for themselves or someone in their household to help cover medical expenses. Millions of Americans live with bad credit and millions of Americans have medical emergencies.
While improving your credit score takes time, it can increase your chances of qualifying for a loan more quickly if you apply with a creditworthy co-signer.
