5 Best Medical Loans for Bad Credit
With BadCredify, you can find the best medical loans with bad credit and get financing to cover your medical expenses.
Written By:
Edited By: Janice Myers
Posting Date:
The inability to pay medical bills is a common problem in the U.S. Statistics show that 1 in 10 adults in the country owe medical debt. People with bad or poor credit scores struggle with American healthcare costs and borrow medical loans the most.
Due to the difficulties with covering medical expenses, many medical loans for bad credit occur. As they are often expensive and come with interest rates and fees, it is crucial to compare several lenders to choose the best offer.
We have compared dozens of lending companies and chosen the five best places to apply for bad credit medical loans.
5 Best Medical Loan Lenders for Bad Credit
★★★★★
Est.APR
6.40% – 35.99%
Loan amount
$1,000 – $50,000
Min Score
300
More About
PROS
- Quick access to loan funds;
- No prepayment penalties;
- Flexible monthly payments;
- Beyond credit score verification (soft credit check);
- Flexible loan amounts.
CONS
- Origination fees up to 10%;
- High annual percentage rate;
- Co-signers aren’t allowed;
- Limited repayment loan terms.
REQUIREMENTS
- Be at least 18 years old;
- Prove your US citizenship or permanent residence;
- Provide your bank account information
- Show your monthly income (at least $2,000 monthly income) by providing pay stubs, tax forms, or bank statements;
- Have fair credit (at least 300);
- Provide an active email address and phone number.
WHO IT’S FOR
Poor credit borrowers who can’t qualify for traditional personal loans.
FEES
- Origination fees up to 10%;
- $15 late fee
- $15 NSF fee
Editor’s Thoughts:
With Upstart, you can borrow $1,000 to $50,000 to finance medical expenses. The platform is an excellent place for people with less-than-perfect credit scores, as it allows you to apply for bad credit medical loans. The repayment period at Upstart ranges from 36 to 60 months.
★★★★☆
Est.APR
8.49% – 35.99%
Loan amount
$1,000 – $50,000
Min Score
Doesn’t specified
More About
PROS
- No prepayment penalties;
- Multiple rate discounts;
- Next-day funding;
- The due date may be changed;
- Direct payments for debt consolidation.
CONS
- APRs may be high;
- Origination fees are charged;
- Late fees may be applied.
ELIGIBILITY REQUIREMENTS
- Be a U.S. citizen, a permanent resident, or living in the U.S. on a valid visa;
- Be at least 18 years old (19 in Alabama and some other states);
- Give a working email address;
- Provide valid bank account details;
- Confirm a sufficient monthly income to cover your loan payments.
WHOM IT SUITS
Fair-credit borrowers who need the money quickly.
FEES
- Origination fees: 1.85% to 9.99%;
- Late payment fees: $10;
- Non-sufficient funds fees: $10 per payment returned.
Editor’s Thoughts:
Upgrade offers various same-day medical loans for people with bad credit. You can apply for joint loans and secured loans, as providing a second person or collateral can significantly increase your approval chance with a low credit score.
★★★★☆
Est.APR
8.99% – 25.81%
Loan amount
$5,000 – $100,000
Min Score
None
More About
PROS
- Low interest rates
- Co-borrowers are allowed
- No prepayment penalties
- Flexible loan amounts
- Wide repayment terms
- No origination fee
CONS
- Good credit is required
- Late fees might apply
- No co-signer option available
- No physical branches
REQUIREMENTS
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Provide your bank account information and social security number
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Provide an active email address and phone number
WHO IT’S FOR
Applicants with good to excellent credit scores who want to consolidate debt, make major purchases, and cover significant medical bills.
FEES
- Optional fees (up to 6%)
Editor’s Thoughts:
SoFi is an amazing place to get a medical loan with bad credit. The company does not charge origination fees, late payment fees, prepayment fees, etc. You can borrow from $5,000 to $100,000 with lower risks and without significantly hurting your budget.
★★★★☆
Est.APR
9.116% – 29.99%
Loan amount
$2,000 – $45,000
Min Score
640
More About
PROS
- Low annual percentage rate;
- Wide range of available loan amounts;
- Same-day funding in some circumstances;
- Accessible for fair credit borrowers.
CONS
- High origination fee (up to 9%);
- No cosigners are allowed for joint loans;
- It is not available in all states.
- Limited term lengths range from 36 to 60 months.
REQUIREMENTS
- Be at least 18 years old;
- Prove your US citizenship or permanent residence;
- Provide your bank account information
- Show your monthly income (at least $2,000 monthly income) by providing pay stubs, tax forms, or bank statements;
- Have fair credit (at least 640);
- Provide an active email address and phone number.
WHO IT’S FOR
Poor credit borrowers who need to make a significant debt consolidation.
FEES
- Origination fees of up to 9%
- $15 late fee
- $15 NSF fee
Editor’s Thoughts:
At Rocket Loans, you can borrow a medical loan with an origination fee that does not exceed 6%. After getting the money in one lump sum, you need to repay it in equal monthly installments. The application process is transparent and free of hidden fees.
★★★★☆
Est.APR
18% – 35.99%
Loan amount
$1,500 – $20,000
Min Score
None
More About
PROS
- Joint and secured loans are available;
- Wide range of loan options for low credit;
- Pre-qualifying doesn’t affect your credit score;
- Convenient options for debt consolidation.
CONS
- Relatively high interest rates;
- Charges origination fees;
- APRs are not disclosed when pre-qualify.
ELIGIBILITY REQUIREMENTS
- At least 18 years also;
- Permanent US resident;
- Income confirmation;
- Valid bank account or debit card.
WHOM IT SUITS
Borrowers with credit issues who want to avoid predatory lenders.
FEES
- Origination fees: 1% to 10%, or $25 to $500, depending on the state;
- Late payment fees: $5 to $30, or 1.5% to 15% of your loan amount;
- Non-sufficient funds fees: $10 to $50 per payment returned.
Editor’s Thoughts:
The company provides secured and unsecured personal loans for bad credit, allowing you to get $1,500-$20,000 to pay for medical expenses. The repayment period of the medical loan can reach 60 months, and you are free of prepayment fees.
BadCredify evaluates lenders based on more than 70 rating criteria, including interest rates, repayment terms, eligibility requirements, fees, consumer experience, affordability, and more. Find out more about our full methodology.
What Are Bad Credit Medical Loans?
A bad credit medical loan is a type of unsecured personal loan that helps people with a less-than-stellar credit history cover medical expenses. These personal loans allow you to get fast cash and repay it in monthly installments. Medical loans usually have flexible repayment terms and fixed interest rates. As they have lower eligibility requirements than other unsecured loans, they typically come with higher interest.
In addition to standard medical procedures, medical loans can be used for:
- Dental care;
- Cosmetic surgery;
- Mental health treatments;
- Pet care;
- IVF and fertility treatments;
- LASIK;
- Etc.
How Do Bad Credit Loans for Medical Procedures Work?
Bad credit loans for medical procedures work similarly to any other personal loan. Loan amounts are transferred directly to a borrower’s bank account within one to three business days and then are repaid in equal monthly payments. In addition to the initial loan amounts, you may need to pay interest rates and origination, late, pre-penalty, or other fees.
Before covering a medical expense with this personal loan, ensure you understand the following factors:
Interest rates
Like with any other personal loan, you need to pay an interest rate in addition to the initial medical loan amount. Interest charges typically vary between 6% and 36% APR (annual percentage rate). Your APR significantly depends on your credit score. The higher your credit, the lower the interest you get.
Fees
Many lenders may charge you origination fees ranging from 1% to 10% of total loan amounts, late payment fees reaching 15% of the monthly payment, or others. It is crucial to understand your potential fees to avoid any surprises.
Loan amounts
Various loan providers can offer different medical loan amounts. In most cases, they range from $1,000 to $50,000. However, some lenders can lend you up to $100,000. The higher your credit score, the larger the loan amount you can get.
Repayment terms
Repayment terms for medical loans vary depending on the lender. In most cases, you need to return the debt within 12-84 months. Making higher monthly payments can help you repay your loan earlier and save on paying interest.
How to Compare Medical Loan Lenders for Bad Credit?
To get medical financing at the best terms, you need to shop around and compare different lenders and their offers. While the selection of medical loans for bad credit is smaller than those with a good or excellent credit score, it is still possible to find personal loan providers who can accept you. Pay attention to the following factors when choosing a provider:
- APR. An annual percentage rate is the cost of borrowing with interest and fees. It can significantly affect the total loan cost, so compare APRs from different lenders to choose the cheapest option.
- Loan terms. Many medical loans for bad credit have shorter repayment periods than traditional personal loans. It means that you need to make larger monthly payments to return your debt. Be sure you can afford to pay these amounts before borrowing.
- Qualification requirements. Eligibility criteria are the most essential factor when choosing medical loan lenders for bad credit. While most personal loans require a good credit score, you can still find online providers with lower requirements. Many lenders also offer pre-qualification that allows you to see your approval chances without impacting your credit score.
- Funding speed. The deposit speed is a key factor if you need to pay for medical costs fast. While in the case of traditional banks, you will likely wait for days for the loan funds, many online lenders offer same-day deposits.
- Lender’s reputation. It is essential to read reviews about the lenders you compare to learn about other customers’ experiences with them. You can also ask your friends and family for recommendations to avoid borrowing personal loans from unknown lenders.
- Extra features. Some lenders allow you not only to take out medical loans for bad credit but also provide you with specific benefits. There can be various discounts such as lower interest for autopay, flexible payments, etc.
- Customer support. Getting fast answers to your questions and other support are incredibly essential if you have never borrowed any personal loans. Pay attention to the lenders offering live customer support.
Get a Medical Loan for Your Needs
- Check customized interest rates from trusted lenders in a few minutes
- Applying does not affect your credit score
- Your personal information is secure
- Any credit score is accepted
How to Increase Your Approval Chance for a Medical Loan?
Getting a medical loan for bad credit is not always affordable and can come with high-interest charges. To increase your chance to get a loan with reasonable interest and favorable terms, you can take the following steps:
Improve Your Credit Score
Many lenders have strict minimum credit score requirements, and it may be challenging to get approved with bad credit. Therefore, you should work on improving your credit score to get money to pay your medical bill.
Apply for a Secured Loan
You usually need to meet strict qualification requirements to get approved for an unsecured loan. If your credit is less than perfect, you can consider offering collateral to your provider. Secured loans for bad credit will make you a less risky borrower for a lender and can help you get approved with more favorable terms and lower interest.
Find a Cosigner
Applying for a personal loan with a cosigner is an excellent option for borrowers who don’t meet the minimum credit score requirements to increase their approval chances. As two individuals take responsibility for loan repayment, lenders are more sure they will get back their money.
Check Your Credit Report
One of the potential reasons for your low credit score may be errors in your credit report. Therefore, you should check it carefully and dispute any mistakes immediately.
Alternative Ways to Cover Medical Costs
Although a medical loan is a common way to pay for medical costs, it is not the only option available for bad credit borrowers. If you don’t meet the minimum credit score requirement of many traditional lenders, consider the following options:
Payment plan
Many medical providers offer payment plans to help their patients cover their medical bills. These plans allow you to pay your bill in monthly installments with no interest rates. Although this option does not always work, it still makes sense to ask your hospital or doctor for a repayment plan.
Credit union loan
Loans from credit unions are usually more affordable than loans from banks and cheaper than loans from online lenders. These not-for-profit organizations offer financing support with interest rates that don’t exceed 18% APR. However, to apply for credit union loans, you need to be a member of the financial institution.
Family loan
Borrowing from your friends or family members is the safest financing option. They don’t check your credit score and don’t charge any fees or interest. However, you can break relations with your close people if you fail to repay the money.
Medical credit cards
Medical credit cards are designed specifically for medical expenses. They usually come with low or no interest rates and are available from healthcare providers. CareCredit is the most popular example of these cards and can be used by more than 260,000 health providers.
Nonprofit assistance
Various nonprofit organizations, like the Patient Advocate Foundation and the National Organization for Rare Disorders, can help you finance your urgent expenses, including medical procedures.
Methodology
Our financial experts have compared a few dozen lending companies offering bad credit medical loans. We have chosen the five best medical loan providers for bad credit among all the platforms. Specialists from BadCredify studied numerous reviews about these companies on trustful sources and submitted applications on their websites.
When making our rating, we paid attention to factors such as loan terms and amounts, eligibility criteria, customer experience, deposit speed, interest rates, and fees. We have arranged these factors in the following order of importance for our assessment:
- Eligibility criteria (30%);
- Interest rates and fees (25%);
- Loan terms and amounts(25%);
- Customer experience (10%);
- Deposit speed (10%).
FAQ
Medical loans are an excellent solution if you don’t have insurance to cover a medical procedure. They can have you pay your costly medical bills.
To qualify for medical loans, you need to compare multiple lenders, their minimum credit score requirements, loan offers, etc. Most providers enable prequalification that helps you see the interest, loan terms, and loan amounts.
Yes, you can obtain medical loans for bad credit. However, the lower your credit, the higher rates you may get. Avoid taking high-interest loans to avoid getting into a cycle of debt.