Medical Loans: The Good, Bad, and the Alternatives

The good, bad, and the alternatives

A medical loan is a specific type of personal loan that can only be used to cover healthcare expenses. For people facing significant out-of-pocket medical expenses, this type of loan can seem ideal. However, there are a few things you should know.

The Good

No collateral is required to secure the loan.
Can be easy to qualify for if you have good credit.
Enables you to undergo elective procedures quickly.

The Bad

Hard to get if you have poor credit.
High interest rates can mean a very high monthly payment.
May involve expensive initiation fees upfront.

The Alternatives

Talk to your doctor’s office or hospital about a payment plan.
Find help through a medical charity or hospital program.
Talk to your doctor about cost-effective treatment options.