Undergoing cosmetic surgery whether it is dental, bariatric or corrective can be a difficult process. This is why it is so important to get your finances in order beforehand so that you are free to concentrate on your recovery rather than how the treatment will be paid for. Taking out the right medical loan can allow you to undergo the procedure now and pay for it at a later date in smaller, more manageable installments, rather than having to find a large upfront sum.
What is a medical loan?
The purpose of a medical loan is to fund dentistry work, weight-loss surgery or cosmetic surgery. A medical loan can either be unsecured, based on your credit rating, or secured to an asset which can be repossessed by the lender should the repayments not be made. Medical loans are usually taken out for between £250 and £10,000.
Can I take out an interest free medical loan?
Interest free medical loans are available, although they are usually reserved for borrowers with an outstanding credit history, as they present the least risk to the lender.
I have a bad credit score; will this affect my chances of obtaining a medical loan?
Those with poor credit rating can apply for a medical loan, but it may be wise to offer a second applicant as guarantor to improve your chances of acceptance.
Is my monthly income taken into account in a medical loan application?
Potential borrowers must prove that they can afford to repay their medical loan. A minimum level of income usually shows this, although adding an additional applicant to the loan can raise this level.
What type of lending can fund medical treatment?
A personal, or unsecured, medical loan is one that is granted based on the borrower’s credit history. If a potential borrower has a proven record of paying debts on time, then they will be given the most preferential interest rates, which, because it is a personal loan, will be usually fixed for the duration of the term.
Second charge mortgage
A medical bill can also be financed by a second charge mortgage. This type of lending is usually taken over a long period of time and, as a result, the monthly repayments are less, although the total interest paid is higher. The major risk to a secured medical loan is that the loan is secured against your home, which can be repossessed in the event that the repayments are not made.
Credit cards can also be used to cover the cost of a medical bill as it means that the payment can be spread over a longer term to make the repayments more manageable. However, the interest rates on a credit card can be much higher than a loan, so it may be worth shopping around to find an interest free credit card and if possible, repay the debt before the interest free period expires.
When searching for a medical loan, make sure that you shop around for the best deal for your particular circumstances. The footprint free tool available from Freedom Finance allows potential borrowers to seek the most appropriate deal from a range of lenders without leaving harmful marks on a their credit rating. The quotes presented by Freedom Finance are not simply the lender’s best deals, but are individually tailored results for each and every applicant.