You can get a medical loan with bad credit, but it’s probably going to be pretty expensive. It probably won’t be called a “medical” loan by name, either. Few lenders offer loans specifically for medical expenses, but patients can just take out a personal loan to pay for their health care instead. Personal loans can be used for anything, including medical bills.
The problem is, many personal loan providers won’t accept people with bad credit. And the lenders that will consider it typically have high interest rates and charge expensive origination fees. Some lenders that wouldn’t otherwise accept applicants with bad credit scores might let you get a secured loan for medical expenses, which could be a good deal, but you’ll have to put up something valuable as collateral.
Places to get medical loans for bad credit:
|Lender ||Minimum Credit Score ||APR Range ||Origination Fee |
|Avant ||600 ||9.95% - 35.99% ||Up to 4.75% |
|FreedomPlus ||620* ||5.99% - 29.99% ||0% - 5% |
|LendingClub ||600-640* ||6.95% - 35.89% ||1% - 6% |
|LendingPoint ||585 ||9.99% - 35.99% ||0% - 6% |
*According to multiple third-party sources
There are other lenders that offer loans to people with bad credit, but they don’t make their terms easily accessible. You should stay away from lenders that aren’t clear about their APR ranges or fees.
With that being said, if you don’t have a high enough credit score to qualify for an unsecured loan for medical expenses, and you don’t want to put down collateral for a secured personal loan, there are a few other avenues you could take.
You could tap in to your home’s equity to borrow at lower interest rates than a personal loan is likely to provide. But then the lender has the power to foreclose if you default. If you already own a credit card, you might consider putting the medical expenses on the card. However, having bad credit will make it hard to qualify for a card with a high enough credit limit and reasonable finance charges.
Finally, as an alternative to a traditional loan, you might try to borrow from friends or relatives. Or, you could even give crowdfunding your medical expenses a go.
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