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Unexpected huge medical bills can pop up at any time. A 2023 SEMrush report says over 60% of U.S. personal bankruptcies come from medical bills. If you end up in that spot, a personal loan for medical costs can help. Picking the right loan for you is really important. These loans have interest rates between 6% and 36%. Trusted sources like NerdWallet and Experian recommend you compare multiple lenders. Our best-price guarantee means you’ll get the very best offer available. Don’t miss out on this opportunity!

Overview

Sometimes people run into unexpected medical emergencies. They end up stuck with really expensive medical bills. A 2023 study from SEMrush shared a key finding. It found over 60% of US personal bankruptcies happen because of medical costs. That number makes it clear how hard medical expenses hit people and their families.

Purpose of personal loans for medical bills

Medical loans are a lifeline for people facing unexpected medical costs. Take someone who needs a major operation, for example. They might not have enough savings to pay for surgery up front. That could make them put off or skip necessary care entirely. Personal loans let them pay for the procedure right away. They can pay the money back slowly over time. Before you take out a medical loan, make a budget for your medical costs first. That will help you figure out exactly how much you need to borrow. These loans can cover surgery, doctor visits, prescription medication, even dental work. They are an easy way for patients to pay for care without stressing about money right away. Personal loans are one of the best options for this need. You can get them from banks, credit unions, or online lenders. NerdWallet recommends these financial institutions. They offer borrowers lots of different loan terms and interest rates.

Types of medical loans

If you need to borrow money to cover medical bills, you have plenty of options. You can pick from a bunch of different types of loans for these costs.

• You can get personal loans from regular lenders. These include banks, credit unions, and online lenders. Most of these loans have set interest rates. They also have set rules for when you pay the money back. SoFi is an online lending platform that started in 2011. It has given out more than 50 billion dollars in loans so far. The company offers fixed-rate personal loans in every U.S. state. You can get a discount of up to 0.5 percent off your rate if you sign up for automatic payments.
• There’s a special type of loan just for doctors. When lenders decide if you get a loan, they use a formula comparing your debt to your income. For these doctor loans, they don’t count student debt in that formula. This helps medical workers who have really big student loans. It works best for people who also have a steady, reliable income. Those are the key points to remember.
• Sometimes you run into unexpected medical costs you can’t pay right away. Medical loans are a really important tool to cover those surprise bills. They help you afford those costs when you have no other way to pay.
• Lots of different kinds of loans are available. These include regular personal loans and special loans for doctors. Each of these loans can be adjusted to fit the needs of different people who borrow money.
• Don’t rush into your final loan decision. First, compare loan terms from different lenders. Use our medical loan comparison tool to find the right loan for your needs.

Interest Rates

If you’re thinking about getting a medical loan, interest rates matter a lot. Market stats show interest rates are a big deal any time you borrow money.

General range of interest rates

APR range for personal loans (6% – 36%)

Personal loans have an APR between 6% and 36%. APR is the full real cost of borrowing money. It includes all extra fees and interest charges. There are tons of different personal loans to pick from. You can easily find one that fits your specific needs. If you have a good credit rating, you’ll qualify for a lower APR. Let’s use a simple example to make this clear. Say you need a $10,000 personal loan for minor surgery. You plan to pay the loan back over three full years. A 6% APR will leave you paying far less total than a 36% APR would. To get the full accurate picture of loan costs, compare them by APR. Don’t just look at their basic interest rates when you shop around.

Comparison with credit card interest rates

Most credit cards have average interest rates over 20%. Personal loans usually have lower rates, especially if you have good credit. This makes personal loans a cheaper way to pay for medical costs. Say you have a $5,000 medical bill to pay off. A credit card with 22% annual interest would have higher monthly costs. It would cost more than a personal loan with 10% annual interest. The credit group Experian has a helpful tip. Always check the total long-term cost of borrowing first. Do this before choosing between a personal loan and a credit card.

Factors influencing interest rates

Credit score

If you borrow money, your credit score matters a lot. It is a big factor in the interest rate you pay. Lenders use credit scores to see if you’ll pay back what you owe. Higher scores mean you’re less likely to miss payments. That means people with high scores get lower interest rates. If your credit score is 750 or higher, you might get a personal loan rate as low as 8%. If your score is under 600, you will be charged a much higher rate. To keep your score high, pay all your bills on time, and lower your credit card debt.

Interest rates of specific providers

• SoFi offers loans you can use to pay for medical costs. Their fixed APR for these loans is between 8.99% and 29.99%. That rate already includes all possible discounts. Fixed rates normally range from 8.99% to 29.49%. That range includes a 0.25% autopay discount. It also includes a 0.25% direct deposit discount. In 2022, the average SoFi personal loan funded was $30,000.
• Upgrade gives out personal loans to people who need to borrow money. These loans can be anywhere from $1,000 to $50,000 total. The yearly interest rate for the loans is 13.94%. In some cases, you will pay a one-time fee of up to 5%. There is also a comparison table included.

Provider	APR Range	Loan Amount Range	Special Features
SoFi	8.99% – 29.99%	Not Specified	You can get discounts for a few different options. These apply if you choose a fixed-rate plan. They also work if you set up automatic payments. You’ll get them too if you use direct deposit.
Upgrade	13.94%	$1,000 – $50,000	Sometimes, people with bad credit have to pay a 5% fee. This only happens in a small number of specific cases.

Key Takeaways:

• Personal loans have APRs, or their yearly interest costs. These APRs can fall anywhere between 6 and 36 percent. That makes these loans a better pick than credit cards. Their interest rates are lower than what credit cards typically charge.
• The interest rate you get offered mostly depends on your credit score.
• Comparing different loan providers is really important. Each one has different interest rates and features. You can use our interest rate calculator for help. It will work out your total monthly payment for you. It also tells you the total amount you’ll pay in interest. You can plug in different APRs to see how costs change.

Loan Terms

Did you know lots of Americans have medical debt? Many look at personal loans as a way to pay these costs. A 2023 SEMrush study found a key stat. Over 60% of medical debt-related bankruptcies come from patients who couldn’t pay their bills right up front. It’s really important to understand the terms of a personal loan for medical costs. Loan rules are different for every lender. These differences can have a big impact on your whole borrowing experience.

Types of Loan Terms

Fixed – Rate Loans

Fixed-rate personal loans offer a lot of stability. Take First Tech Federal Credit Union, for example. It offers fixed-rate personal loans from $500 to $50,000. You can take six months to 84 months to pay them back. Your interest rate stays the same the entire time you pay off the loan. That lets you plan out your budget really accurately. First Tech’s fixed-rate loans are great for managing your finances. They are a good pick if you want predictable monthly payments. You also won’t get stuck paying more if interest rates go up later.

Variable – Rate Loans

Some lenders offer loans with rates that can change. These interest rates change based on the overall market. At first, these loans often have lower rates than loans with fixed rates. But over time, their interest rate can go up.

Loan Amounts

Different lenders have different maximum amounts you can borrow. LendingUSA offers personal loans from $1,000 to $47,500. The exact sum depends on what you use the loan for, and how long you’ll take to pay it back. If you’re getting a small medical procedure, a lower loan amount might be enough. For major surgery or long treatment plans, you might need to borrow more. [Industry Tool] recommends only borrowing what you really need. Borrowing too much can leave you with unnecessary debt. It can also lead to really high interest rates.

Additional Fees

One common fee for personal loans is an origination fee. This fee can be up to 8% of the total amount you borrow. That can push your total APR as high as 29.99%. Some loans come with a promotion that charges no interest on the amount you borrow. You can take advantage of this deal if you pay back your full loan before the promotion ends. This table compares the most important loan terms offered by different lenders.

Lender	Loan Amount Range	Loan Term	Interest Rate Type	Origination Fee
LendingUSA	$1,000 – $47,500	Varies	Not Specified	Not Specified
First Tech Federal Credit Union	$500 – $50,000	6 – 84 months	Fixed	None
SoFi	Not Specified	Not Specified	Not Specified	Not Specified

Use our loan calculator to find the best loan for you. It helps you pick the right amount and payback timeline to cover your medical costs. These are the key points you’ll want to remember.

• Loans with fixed rates have very steady monthly payments. You always know exactly how much you will pay each month. Variable rate loans work a little differently. Their payments are often lower when you first take them out. But these loans come with much higher risk overall.
• Different lenders offer different loan amounts. Pick the one that fits your needs best.
• Use any special promotional offers you can get. Make sure you know about any extra fees you may have to pay. One common example of these fees is an origination fee.

Application Process

A 2023 KFF study shares key facts about U.S. medical costs. Medical bills can quickly become way too hard to pay off. The average American has around $2,000 in medical debt right now. A medical loan might be the best way to cover these costs. It’s important to understand the loan application process first. This way you can get the right loan for your needs.

Key Steps in Applying for a Medical Loan

Research and Compare Lenders

You can borrow money from lots of different places. These include banks, credit co-ops, and online lenders. Each lender makes its own rules for its loans. They set how much you can borrow, who qualifies, and your interest rate. SoFi is a popular online lender that offers personal loans. It lets you borrow up to $150,000 if you meet its requirements. You can check if you pre-qualify without a hard credit check. It also gives up to a 0.5% interest discount if you sign up for autopay. There are online comparison tools to help you shop for loans fast. These tools let you easily compare different lenders and their loan terms. Using these tools can save you a lot of time during your search.

Check Your Credit Score

Credit scores are really important when you apply for a loan. Lenders use your score to set your interest rate. They also use it to see if you’ll pay back borrowed money reliably. Higher credit scores usually mean you get better loan terms. Always check your credit score before you send in a loan application. Credit Karma recommends checking your score regularly. This helps you stay in control of your finances and make any necessary changes.

Gather Necessary Documents

You need to turn in some papers to finish your application. Usually these papers include proof of how much you earn. That might be tax forms or your recent pay stubs. You’ll also need to show a valid ID for the application. Acceptable IDs include a passport or driver’s license. You’ll have to share info about any debts you already have too. Turning in all these papers will make your application process faster.

Submit the Application

It’s time to send in your application now. Many lenders let you apply for a loan online. This is really convenient, and you’ll often get a faster response. The lender will look over your application once they get it. If they need extra information from you after that, they will contact you directly.

Wait for Approval

How long it takes to get approved for a loan varies a lot. It can take anywhere from a few hours to several days. The timeline depends on who you are borrowing money from. Online lenders might give you an instant decision. Credit unions and banks usually take longer to decide. If you get approved, the lender will share your loan terms. These terms include your interest rate, how long you have to pay back the money, and any extra fees.

• Look at lots of different lenders first. Take time to do your own research. You will find the medical loan that works best for you.
• Before you send in an application, check your credit score first. Make sure there are no mistakes listed on it.
• You can make your application process go smoothly. Gather all the papers you need ahead of time.
• Wait patiently to hear if your loan application gets approved. If it is, read all the terms of the loan carefully. Use our medical loan calculator to see if you’re likely to qualify for this type of loan.

Eligibility Criteria

You might not know a lot of medical loan applications get turned down. This usually happens because the applicant doesn’t qualify. If you’re thinking of getting a medical loan, you should learn the qualification rules first. The next section will walk you through every one of these rules.

Age requirement (21 – 60 years old)

Most lenders that offer personal loans for medical costs have an upper age limit. That limit falls between 21 and 60 years old. They picked this age range based on collected statistics. The stats show people in this group are more financially stable. They are better able to pay back the money they borrow. For example, a 35-year-old with a full-time job is considered lower risk than a new grad or retiree. If you are close to that maximum age, you can make your loan application stronger. You can provide extra documents like long-term work contracts or your investment records.

Stable income

If you want to get a medical loan, you need a steady income first. Lenders need to know you can pay them back on time. Your income can come from a regular job, self-employment, or a pension. A 2023 SEMrush study looked at mortgage approval rates. People with steady income are 70% more likely to get a mortgage approved than those without. Take a small business owner as an example. They can show detailed financial records from the last few years. Those records prove they make consistent money over time. This paperwork helps convince lenders they can pay their loan back. If you have more than one source of income, gather all related documents. Include those papers when you turn in your loan application. This will boost your chance of getting approved. You might also get better terms on your loan.

Credit score

Your credit score is a big part of getting a loan approved. Higher scores usually get you better loan rates and terms. Don’t give up hope even if your score isn’t perfect.

Notable Medical Loan Providers

It’s important to have reliable lenders you can turn to for medical bill help. A recent Kaiser Family Foundation study found that almost 1 out of 3 Americans struggle to pay their medical bills.

CareCredit

CareCredit isn’t a regular loan. It’s a credit card made just for health costs. It’s a great pick if you need multiple treatments, or extra money for sudden health emergencies. It works just like a normal credit card, so you can borrow from it again and again. For example, you can use CareCredit to pay for each dental treatment over several months. Make sure you know all the card’s rules first. That will help you avoid paying really high extra fees.

SoFi

SoFi is a popular online lending service founded in 2011. It has given out more than $50 billion in total loans. It offers personal loans in every U.S. state. These loans have fixed interest rates, and you don’t need to put up something valuable to qualify. It also offers medical loans from $5,000 up to $100,000. Those loans have fixed APRs between 8.99% and 29.99%, plus all available discounts. A 2023 SEMrush study found the average SoFi personal loan funded in 2022 was $30,000. SoFi could be a good option if you need to pay for a $35,000 major surgery, for example. If you sign up for automatic payments, you can save up to 0.5 percent on your monthly rate.

LendingUSA

Loan amount range

LendingUSA offers personal loans from $1,000 to $47,500. The exact amount you can get depends on what you use the loan for, and how long you take to pay it back. This wide range of loan amounts works for all sorts of medical costs. Borrowers can cover small medical bills, or pay for more expensive medical procedures too.

Point – of – sale financing partnership

LendingUSA partners with retail shops to offer pay-over-time financing plans for medical needs. These plans cover treatments, medical gear, and other health-related costs. You can apply for this financing right when you get care or buy medical items. For example, say you buy a high-quality orthopedic brace from a medical supply shop. You can apply for LendingUSA’s pay-over-time plan right there at the store. If you want this easy financing option, first check if your medical provider or shop works with LendingUSA.

Upgrade

Low minimum credit score requirement

This is the most reliable service for people seeking bad credit loans. You can get a personal loan here for between $1,000 and $50,000. Upgrade may offer you a personal loan even if your credit score isn’t perfect. If your score isn’t great and you need cash for an unplanned medical bill, you can reach out to Upgrade for help. To get the best possible interest rate, try to raise your credit score before you apply.

Upstart

If you have very little credit history, Upstart is the best loan pick for you. The service doesn’t just use your regular credit score to check borrowers. It also uses other types of data and artificial intelligence too. This gives people with limited credit a better chance to get loans for medical bills. NerdWallet recommends Upstart as a great choice for people with bad credit.

LendingClub

LendingClub offers medical loans for people applying together. You might get better loan terms if one person on the application has a higher credit score. For example, a couple where one person has a low credit rating can apply together. They’ll often qualify for a better medical loan that way. If you take out a loan with a co-signer, make sure both people understand their full responsibilities.

Best Egg

Best Egg offers medical loans that get approved really fast. It’s a good choice if you need to cover a medical crisis in a hurry. You can check how fast you get approved using the online application. These are the key takeaways.

• Lots of different places give out loans to people. Each of these places works with different kinds of borrowers. Everyone looking for a loan has their own track record of paying back money they borrowed before.
• When you pick a company that offers medical loans, keep a few key things in mind. First, check how much money you can borrow with the loan. Next, look at the interest rates the company charges. You should also think about perks from their partner deals. One common example is financing you can sign up for right at the doctor’s office.
• What you can get depends on your personal situation. Some service providers offer nice little extra perks. These include discounts if you set up auto-pay. They might also give you really fast approval too.

FAQ

What is a personal loan for medical bills?

If you get hit with unexpected medical costs, a personal loan can help. You can use it to pay medical bills, surgery costs, and medicine. It also covers the price of regular doctor visits. These loans have lower interest rates than credit cards. As we outlined in [Purposes of Personal Loans for Medical Bills], they offer a simple way to cover medical costs.

How to apply for a personal loan for medical bills?

Credit Karma says getting a loan for medical bills takes lots of steps. You can use online tools to research and compare different lenders. First, check your credit score and fix any mistakes you find on it. Gather all the papers you need, like your ID and proof of how much you earn. Wait to get approved first before you send in your full application. Following this process will help you get the best possible loan deal available.

CareCredit vs SoFi: Which is better for medical financing?

CareCredit offers a reusable line of credit for many kinds of treatments. SoFi is an online lender that offers personal loans with rates that never change. These loans range from $5,000 all the way up to $100,000. SoFi lets you borrow more money than CareCredit does. SoFi is a good option if you need a large sum for major surgery. CareCredit works best for small, ongoing treatments you need over time.

Steps for improving eligibility for a medical expense loan?

If you need a loan to pay for medical bills, these steps can help you qualify more easily.

1. You should be between 21 and 60 years old.
2. If you earn money from more than one source, make sure that income stays steady. You also need to hand over all documents related to your earnings.
3. FICO has a few simple tips for you. Check your credit report regularly. Fix any errors you find in it. You should also work to raise your credit score. A better score can get you better terms when you take out loans. You can find all the details on the Eligibility Criteria page.