Medical Loans: The Good, Bad, And The Alternatives

A medical loan is a specific type of personal loan that can only be used to cover healthcare expenses. For people facing significant out-of-pocket medical expenses, this type of loan can seem ideal. However, there are a few things you should know.

The Good

*  No collateral is required to secure the loan.

*  Can be easy to qualify for if you have good credit.

*  Enables you to undergo elective procedures quickly.

The Bad

*  Hard to get if you have poor credit.

*  High interest rates can mean a very high monthly payment.

*  May involve expensive initiation fees upfront.

The Alternatives

*  Talk to your doctor’s office or hospital about a payment plan.

*  Find help through a medical charity or hospital program.

*  Talk to your doctor about cost-effective treatment options.