Financing medical costs is already a tough job in this economy. It gets even tougher with unexpected medical emergencies, which happen to everyone. Medical insurance or other healthcare plans often fail to provide any backups for this situation due to their low approval rates. In this situation, opting for a good medical loan with a quick approval process is necessary.Â
Keeping these urgencies in mind, banks often provide fast medical expense financing services that can offer quick loans for medical emergencies. Paying for emergency medical bills upfront can be a near-impossible task if you don’t have access to any immediate healthcare funds, which can be made easier through express medical loans.
What is an Express Medical Loan and How Does It Work?
If you have no prior experience with medical loans, you should know some of the basics before proceeding.
In a nutshell, a medical loan is a kind of personal loan that is obtained specifically to cover medical expenses. Medical loans can be used to pay for a variety of medical costs, including emergency procedures, IVF treatments, and elective surgeries.
Express medical loans have higher approval rates compared to other healthcare financing services. It is also a quicker and easier solution to find in case of emergencies. Which is a very good option for immediately financing any emergency medical situation.
Why Use Express Medical Loan?
Now that you understand what a medical loan is and how it works, here are some reasons why you should get an express medical loan.
Fast Medical Expense Financing: Compared to other healthcare services, express medical loans are approved quite swiftly; they often get approved within one to two business days depending on the urgency of the situation. If an abrupt procedure is needed, one should know that medical loans can provide a prompt solution while health insurance claims can take months to be approved.
Flexible terms of loans: The majority of medical loans allow you to choose a repayment term that best fits your circumstances, with durations ranging from 36 to 60 months. Additionally, since interest rates are set, your monthly payment will always be the same, making it easier for you to fix the terms that suit your finances.
Higher approval rates: Health insurance claims and healthcare plans often get denied despite them taking months to be approved. However, express healthcare plans have higher approval rates. This means even if the procedure is elective, the loan request will be approved faster than any other healthcare plan.
No collaterals required: Typically medical loans are unsecured loans which means it is possible to obtain a loan without keeping your home or valuable assets as collateral. For this reason, they may have higher interest rates and credit score restrictions. But it is a necessary solution in case of emergencies.
Cheaper Than Credit Card Fees: In the case of medical bills, credit card interest rates often hover around 20 percent, thus paying for medical treatment can get costly by using it. It is wiser to use medical loans with interest rates of less than 11 percent if your credit is good.
Top Loan-Giving Companies for Medical Loans
The annual percentage rate for express medical loans ranges from 6-36% among various lenders, lasting for 2-5 years depending on the amount borrowed each year. For comparison, some of these loan policies and terms can be mentioned.
Upstart
Upstart is a suitable option with an appealing interest rate of 6.40%-35.99%. Borrowers don’t need to have a credit score for their policy. They can select a loan term that best fits their budgetary needs thanks to the variable terms available, which range from three to five years. For a $1000 to $50,000 loan sum given in a year, the payback duration is 3 to 5 years.
Upgrade
Upgrade is a good option for borrowers with good credit scores because it has an attractive interest rate of 8.49%-35.99%. The loan terms are flexible so borrowers can choose how best to fit the repayment schedule within their financial objectives. For $1000- $50,000 provided in a year, Upgrade offers 2-5 years for repayment. Borrowers need a minimum credit score of 560 to achieve a medical loan.
Prosper
Prosper is a good option for people who have a credit score of at least 560. It provides loans ranging from $2,000-$50,000. The interest rates can vary from 6.99-35.99%. It depends on your credit score. The repayment period is 2-5 years.
Best Egg
Best Egg is also a suitable option, although they require you to have a credit score of at least 600. They provide loans from anywhere between $2,000 to $50,000 where interest rates can range from 8.99-35.99%. The repayment period can last from 2-5 years on this one.
Achieve
Achieve provides loans ranging from $2000 to $50,000 with an interest rate of 6.40%-35.99% depending on the credit score. It is a good option for borrowers since it doesn’t have any requirement for a minimum credit score.
Discover
Discover can also be a good option for low-income borrowers since it does not have a specified credit score requirement. The loan amount can range from $2,500 to $40,000. The interest rates can vary from 7.99%–24.99%. The repayment period can last from 36 months 84 months.
LendingPoint
LendingPoint is the best option for credit borrowers with a minimum credit score of 660. The loan amount can be around $2,000 to $36,500. It also has an interest rate of 7.99%–35.99%. The repayment period can be anywhere from 24 to 72 months.
Lending Club
Lending Club is a viable option for borrowers with a minimum credit score of 600. A loan can range from a plan for $1000 to $40,000 with an interest rate of 9.57%-35.99% for a term of 2 to 5 years which allows for flexibility in terms of choosing the length of the repayment.
Lightstream
Lightstream offers medical loan policies ranging from $5,000 to $100,000s for a period of 36 to 60 months for repayment. The interest rates can be 8.49-25.49%, depending on the credit score of the borrower. However, borrowers need a credit score of at least 660 to avail of this policy.
SoFi
SoFi is also a good option for medical loans for borrowers with no credit score, as it doesn’t need any. The loan amount can range from $5,000-$100,000 with an interest rate that can range from 8.99-25.81%. The repayment period can last from 36-60 months, depending on the policies.
Finally, your option should be determined by your financial circumstances, credit score, preferences, and ability to repay within the periods specified. Before deciding on a loan, thoroughly analyze the interest rates, loan terms, credit score, and repayment schedules.
Things to do Before Applying For A Medical Loan
Now, Let us talk about what to do before you apply for a medical loan. Like a normal loan, you have to keep in mind a few things.
Determine Loan Amount: The first step in beginning the loan application process is deciding how much financial assistance you require and how much you can repay. It is necessary to thoroughly evaluate your household budget, compute the numbers, and choose a loan amount that will easily fit into your monthly budget.
Assess your credit score: Examining your credit profile and correcting any irregularities you can find is advisable because loan terms and interest rates are closely linked to your credit history and score. This important information forms the basis for understanding the kinds of lenders that are appropriate for your particular circumstances; certain lenders specialize in working with borrowers who have less-than-ideal credit scores.
Explore Loan Options: Find the best terms and conditions and competitive interest rates for your loan by doing a thorough inquiry into several lenders and requesting quotes. Employ the online pre-qualification resources provided by certain lenders to evaluate your suitability and receive loan estimates without negatively impacting your credit score.
Choose a lender and complete the application process: Choose a lender that best suits your needs according to your gathered information. After that, complete the necessary application, including personal information and evidence of job and income. You can be eligible to receive funds in a very short amount of time—often in just one business day—if you follow these instructions and finish the application procedure.
Also Read: 5 Rapid Approval Student Loans You Need to Consider in 2024
Final Thoughts
Millions of people refrain from urgent medical procedures due to a lack of finances and good healthcare plans. But with the help of express medical loans, it is possible to provide those finances. It is really necessary to maintain a good credit score to get quick loans for medical emergencies. Many companies in the US provide fast medical expense financing. As medical loans get approved quickly and easily, instead of waiting for insurance claims to be approved, getting a medical loan is the most viable option in case of emergencies. With your research and good planning for your finances, you can also obtain any necessary loans to pay for your emergency medical bills.
