Kiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their finances. She has also been featured by Investopedia, Los Angeles Times, Money.com and other financial publications.
Kiah Treece Kiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their finances. She has also been featured by Investopedia, Los Angeles Times, Money.com and other financial publications.
Loans Writer
Jordan Tarver has spent seven years covering mortgage, personal loan and business loan content for leading financial publications such as Forbes Advisor. He blends knowledge from his bachelor's degree in business finance, his experience as a top performer in the mortgage industry and his entrepreneurial success to simplify complex financial topics. Jordan aims to make mortgages and loans understandable.
Jordan TarverJordan Tarver has spent seven years covering mortgage, personal loan and business loan content for leading financial publications such as Forbes Advisor. He blends knowledge from his bachelor's degree in business finance, his experience as a top performer in the mortgage industry and his entrepreneurial success to simplify complex financial topics. Jordan aims to make mortgages and loans understandable.
Lead Editor, Mortgages & Loans Updated: Apr 1, 2024, 2:04pm
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Medical expenses can be overwhelming, especially if you have bad credit. Fortunately, options are available for people who need fast cash and don’t want to wait until their credit improves. Bad credit medical loans are a type of personal loan that can provide a way for those with poor or no credit to finance the cost of medical care without resorting to higher-cost financing like payday loans.
Best Bad Credit Medical Loans
Summary: Best Bad Credit Medical Loans
Tips for Comparing Bad Credit Medical Loans
When comparing the best personal loans for medical bills, shop around and compare lenders to get the best deal available to low-credit borrowers. Look for offers with low or no fees, competitive interest rates, flexible repayment terms and minimal additional costs.
Follow these tips when comparing bad credit medical loans:
- Determine each lender’s interest rates and fees. Loan costs are usually higher for borrowers with poor credit than for more qualified applicants. However, some lenders specialize in low-credit borrowers and may offer more competitive rates than more traditional financial institutions. That said, some bad credit medical loans may include fees or penalties for late payments, early repayment or other missteps. Make sure you understand the costs of borrowing before signing a loan agreement.
- Consider qualification requirements. It’s best to have a credit score of at least 670 to qualify for a personal loan, but some lenders impose less rigorous requirements or consider additional factors like education or income. Online lenders often have more accessible qualification requirements than banks and credit unions. Many lenders offer a prequalification process that lets prospective borrowers see what rate they’re likely to qualify for without impacting their credit score.
- Find a funding speed that works for you. If you need the funds quickly, compare lenders that offer fast funding speeds. Some bad credit medical loans are funded as soon as the next day while others may take several days or weeks.
- Choose a repayment term that fits your budget. Many bad credit medical loans have shorter term lengths than traditional loans. This means they can be paid off more quickly and at less cost overall, but they may also come with higher monthly payments.
- Compare customer support offerings. Choose a lender that offers live customer support if you have questions during the application process or after your loan is finalized. Compare customer service offerings between different lenders to get the best support possible.
- Evaluate additional features. Some bad credit medical loan lenders offer additional features such as payment flexibility, lower rates for autopay and other discounts. Likewise, evaluate each lender’s online resources, including calculators and educational materials.
- Read customer reviews. Consider each lender’s reputation when comparing personal loans for medical costs. Ask friends and family for recommendations and read customer reviews and ratings to evaluate customer satisfaction.
What Is a Bad Credit Medical Loan?
A bad credit medical loan is a type of personal loan specifically designed for people with limited credit who need to cover the cost of medical care. These loans may offer fast access to cash and flexible repayment terms—but interest rates may be high for borrowers with less-than-stellar credit. That said, some personal loans are tailored to borrowers with bad credit and have less stringent qualification requirements than traditional personal loans.
How Do Bad Credit Medical Loans Work?
Bad credit medical loans work like other personal loans in that borrowers receive a lump sum of cash repaid over a set term. Payments are typically due monthly, and interest accrues on the entire loan balance. Some loans come with origination fees and other borrowing costs, though some online lenders forgo these costs in favor of a fee-free structure.
- Interest rates: Interest rates for personal loans typically range from 6% to 36%. That said, rates vary by lender and ultimately depend on factors like the borrower’s creditworthiness. Consumers with bad credit do not usually qualify for the most competitive rates.
- Fees: Some bad credit medical loans may include origination fees, late payment fees and prepayment penalties. Origination fees typically range from 1% to 10% and are built into the loan’s annual percentage rate (APR). Make sure you understand what these are before signing a loan agreement.
- Loan amounts: Personal loans often range from $1,000 to $50,000, but some lenders offer up to $100,000. Ultimately, the loan amount a borrower qualifies for depends on their credit score, meaning less qualified consumers may be limited to lower borrowing limits.
- Loan terms: Most personal loans come with repayment terms between one and seven years—or 12 and 84 months. Shorter loan terms translate into higher monthly payments but lower interest accrual over time.
- Collateral requirements: Most personal loans are unsecured and do not require collateral. However, some lenders require less qualified borrowers to pledge assets as collateral or offer more competitive rates to those who do.
When to Consider a Medical Loan
The best medical loans can help consumers who can’t pay for medical expenses out of pocket and do not qualify for traditional financing due to poor or no credit history. Still, bad credit medical loans typically have higher interest rates than other types of financing, so it is important to compare several lenders to get the best possible rate.
How to Get a Bad Credit Medical Loan
The process for getting a bad credit medical loan varies by lender. However, there are a few general steps you can follow when applying:
- Check your credit score. Before applying for a bad credit medical loan, check your credit score to understand what lenders will see when they review your application. This can help you determine which lenders are more likely to approve your loan request.
- Decide how much you need to borrow. Calculate how much you need to borrow to cover your medical bills early in the application process. Doing so can help you choose a lender that won’t require you to borrow more than necessary—or one that offers borrowing limits high enough to meet your needs.
- Research different lenders. After checking your credit score, research potential lenders and their associated interest rates, fees and repayment terms. Some lenders may allow you to prequalify without a hard credit inquiry. This can help you understand the rates you’re likely to qualify for without negatively impacting your credit score.
- Gather relevant documents. Most lenders require applicants to provide documentation such as proof of income and bank statements before approving their loan request. Have these on hand when applying to speed up the process.
- Identify a co-borrower or collateral. Some lenders may require a co-borrower or collateral to approve your loan request. This can improve your approval odds or help you qualify for a lower interest rate. Make sure you understand these requirements before submitting your application.
- Submit a formal application. Once you have researched and chosen a lender, complete the loan application. Be honest and thorough in order to increase your chances of being approved for the best possible terms.
Methodology
We reviewed 18 popular lenders based on 14 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose lenders that have a minimum credit score requirement of 600 or lower and ranked them based on the weighting assigned to each category:
- Eligibility and accessibility: 30%
- Loan cost: 25%
- Loan details: 20%
- Customer experience: 15%
- Application process: 10%
Within each category, we also considered several characteristics, including loan amounts, repayment terms, APR ranges and applicable fees. We also looked at whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.
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