Types of Medical Loans – Why & How to Get One
You can find different types of medical loans from lenders across the United States. Technically, medical loans are personal loans specifically for medical expenses. Borrowers can secure interest rates as low as 2.49%. However, your APR and loan amount is determined by your credit score. Compare several types of medical loans to get the best interest rate.
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Steve Crowell
Mortgage Loan Originator
Steve Crowell is a New Hampshire based mortgage loan originator with Luminate Home Loans, Inc. After graduating from the University of New Hampshire in 2003 with a BS in Business and Economics and a BA in History, he went on to get his broker license in 2005. In 2021, he was recognized as a Luminate Home Loans “Circle of Excellence” top agent. Steve works as a trusted resource for clients w...
Mortgage Loan Originator
UPDATED: Jun 29, 2022
Advertiser Disclosure: We strive to help you make confident loan decisions. Comparison shopping should be easy. We are not affiliated with any one loan provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about loans. Our goal is to be an objective, third-party resource for everything loan related. We update our site regularly, and all content is reviewed by experts.
UPDATED: Jun 29, 2022
Advertiser Disclosure: We strive to help you make confident loan decisions. Comparison shopping should be easy. We are not affiliated with any one loan provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Medical loans are personal loans that are strictly for medical expenses
- You can secure low APRs if you have good credit history
- Lightstream has an interest rate as low as 2.49%
Different types of medical loans are still considered personal loans. You can find various types of medical loans from multiple companies, but each company carries a unique loan amount and annual percentage rate (APR).
Our guide explains everything you need to know about getting different types of medical loans from lenders online.
Once you learn about types of medical loans, enter your ZIP code in the free online quote tool above to compare multiple lenders in your area.
Where can I find different types of medical loans?
If you’re searching for medical loans, you’re unlikely to find them. Medical loans are personal loans. Different medical loans are available from multiple lenders.
The term “medical” is attached to the personal loan to make it clear that the loan is specifically for medical procedures and products. It doesn’t matter whether the loan is for something essential to your health or cosmetic.
Therefore, medical loans for bad credit are no-credit-check emergency loans. Any medical loans for cosmetic surgery are considered personal loans.
Some surgeries may be related to work. You may have access to business loans if the surgery is work-related. Always ask questions to secure the best medical loans for surgery.
Continue reading to learn which lenders provide the best personal loans in the United States.
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Who are the best lenders for medical loans?
The top personal loan companies provide affordable types of medical loans. But, what does that mean? By affordable, we mean personal loans with low interest rates.
Higher APRs mean you pay more back on a medical loan. If you can secure a lower APR, you save money in the long run.
Let’s look at a few companies with the best service in the U.S.
Top 7 Personal Loan Lenders| Lenders | Fixed APR Ranges | Minimum Credit Scores |
|---|---|---|
| Avant | 9.95% - 35.99% APR | 550 |
| Best Egg | 5.99% - 29.99% APR | 600 |
| LendingPoint | 15.49% - 35.99% APR | 580 |
| Lightstream | 2.49% - 19.99% APR | 660 |
| Prosper | 6.95% - 35.99% APR | 640 |
| SoFi | 5.99% - 18.83% APR | N/A |
| Upstart | 8.27% - 35.99% APR | 580 |
Lightstream has the lowest available APR out of the seven companies. Meanwhile, LendingPoint has the highest minimum APR.
Avant provides medical loans to people who have at least a 550 credit score. But what about companies that aren’t on the list? Here are a few more and what they’re known for.
- Prosper Healthcare Lending – Best for fast application processing
- United Medical Credit – Best for cosigners
- CareCredit – Best for multiple treatments
Keep shopping around until you find a medical loan company that offers a low interest rate.
How do I apply for a medical loan?
You can be approved for a medical loan within minutes. Go to the website of any loan company and request a loan.
You’ll have to put in some personal information, and the lender does a soft check on your credit.
If you meet the lender’s requirements, you get approved. Your loan amount is based on your credit score.
According to the Federal Trade Commission (FTC), companies issue higher credit limits and lower interest rates to people with good credit because they present a lower risk.
Who benefits the most from medical loans?
Anyone can benefit from a medical loan. However, medical loans are perfect for borrowers who need to build credit while getting the medical treatment they need.
Seniors can hold on to their hard-earned money, and young adults can build credit as they get routine medical treatment.
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What is the alternative to medical loans?
If your credit score is too low to receive a medical loan, you’ll need to find an alternative. Here are a few options you can use.
- See if the hospital has financial assistance programs
- Get a discount
- Compromise for a lower monthly payment
- Don’t pay for services that you didn’t receive
- Shop around for a no-credit-check emergency loan
No-credit-check loans have high APRs. We recommended looking for more options before you commit to a high-interest loan.
What are the advantages and disadvantages to medical loans?
Before we wrap up this guide, let’s look at a few highlights and drawbacks of medical loans. We summarized them in the table below.
Medical Loans: Pros and Cons| Medical Loan Pros | Medical Loan Cons |
|---|---|
| Lower Interest Rates than Some Credit Cards | High-interest Rates for Borrowers with Bad Credit |
| Quick Funding | Low Funding |
| Several Loan Terms | |
| Versatile with Any Medical Treatment |
Medical loans have more pros than cons. They’re helpful for those with good credit but limited for people with poor credit. If you can pay off a few no-credit-check loans, you can raise your credit score.
Types of medical loans: What’s the bottom line?
Medical loans are personal loans that restrict the use of the loan to medical-related expenses. You can’t use your medical loan for business or car purchases.
If your credit score is good, you can secure low interest rates and a higher credit limit.
Now that you’ve learned about types of medical loans, use our free comparison tool to compare multiple lenders near you.
Apply for a Loan
Enter your ZIP code below to view lenders with cheap loan rates.
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Steve Crowell
Mortgage Loan Originator
Steve Crowell is a New Hampshire based mortgage loan originator with Luminate Home Loans, Inc. After graduating from the University of New Hampshire in 2003 with a BS in Business and Economics and a BA in History, he went on to get his broker license in 2005. In 2021, he was recognized as a Luminate Home Loans “Circle of Excellence” top agent. Steve works as a trusted resource for clients w...
Mortgage Loan Originator
Editorial Guidelines: We are a free online resource for anyone interested in learning more about loans. Our goal is to be an objective, third-party resource for everything loan related. We update our site regularly, and all content is reviewed by experts.