How to get approved for a medical loan if you have bad credit

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Many people looking for a medical loan are in a situation where they don’t have insurance, or their insurance does not cover the medical procedure. This can include procedures in orthodontics, dermatology, laser vision correction, cosmetic treatment, and also larger surgeries.

Even if the insurance does cover the procedure, often times it is only partially covered, and you are still left with a large medical bill to pay. Often times the deductible, co-pay, out-of-pocket expenses could add even more pressure on your finances. This can force you to hold off or not have the procedure you want, or need.

A bank loan or credit card would help fill that gap. But if you have bad credit, chances are a traditional route might not be able to help.

But there are specialized lenders who approve medical loans to those with bad credit if you understand how to go about it.

Before speaking to these lenders, consider the outcome of the procedure. Is it a large procedure that would result in lost income or the ability to pay back the loan any time soon? Or is it a small treatment which you believe you will start to pay back immediately.

The reason is because lenders will evaluate the risk of you not paying the loan based on the procedure. If you have bad credit, these other bits of information used by lenders to evaluate your qualifications. For example, cosmetic medical loans have higher  approval than orthopedic or life threatening procedures due to lower recovery time.

If you will not be able to work after the procedure, discuss with the lender the ability to have the payments begin after a certain period of recovery, or the interest to hold off after a certain amount of time. This might result in a higher cost for the loan, but at least you are able to recover without worrying about the debt.

Decide on the necessary amount needed and consider a collateral. Some lenders will look at assets which you might own, such as a car or house, and use that as a security on their money. A collateral would help you get approval if you have bad credit. Another collateral is if you happen to be expecting a settlement from an insurance or third party that resulted in you having a medical procedure.

Speak to several medical loan companies. Explaining why you are a good candidate for a medical loan despite your bad credit will allow them to evaluate your application based on your medical circumstances.

Discuss with lenders if they are able to contract to pay the medical doctor or facility directly. Often times if they do, there is flexibility with the terms because they know the cash is going to be used specifically for medical.

Bad credit might hinder you from getting a traditional loan for your medical needs, but medical lenders will look at other aspects than just your payment history to approve you for a medical loan.