4 Popular Alternatives to Medical Loans

4 Popular Alternatives to Medical Loans

Even with health insurance, you are likely to get stuck with a medical bill of thousands of dollars at some point. Health is something you can’t compromise on, preventive and emergency treatments are necessary. If you are unable to shoulder the cost, a medical loan might help you. However, if you don’t want to take out a medical loan then there are other alternatives that you should look into.

Loans for medical procedures usually have a quick release time because they can be urgent but that also means they have a high interest rate. Hence, it would be smart to look at all your options before taking a medical loan, especially if you don’t have a high-paying job. Let’s first understand what a medical loan is.

What is a medical loan?

Medical loans are personal loans that are taken out for the specific purpose of financing medical bills. Medical loans can be used for a variety of medical costs, like emergency treatments, IVF, surgeries, etc. These are unsecured, so you won’t need collateral. However, medical loans can have high-interest rates since they usually have a quick release time since people might need the money for urgent care. If you have a good credit score, you might be charged a slightly lower interest rate, but it will still significantly impact the overall loan amount.

4 popular alternates to a medical loan

If you have a bad credit score or can’t afford the high-interest rates of a medical loan, here are 4 alternatives that you can check out-

  1. Payment plans

Many hospitals offer payment plans, occasionally even without interest. Before taking out any medical loan, tell your doctor about your concerns about not being able to pay for the procedures. Working out a payment plan directly with your healthcare provider might just ease your worries. Some hospitals even offer discounts depending on the situation.

  1. Credit cards

Credit cards are a good option for less-expensive procedures and treatments. Some credit card lenders even offer a zero-interest credit card if you are a new customer with a decent credit score. Several lenders even offer credit cards specifically for healthcare, which could immediately help you take care of your medical bills. However, interest rates on medical credit cards are usually higher than other credit cards, some lenders even take advantage of patients and don’t tell them upfront about extra charges and overall loan costs. So be sure to look at reviews before choosing a lender.

  1. Crowdfunding

Crowdfunding platforms like GoFundMe, Plumfund, and CoFund solicit donations from others to finance your medical bills. Most of these sites will charge a small processing fee, and you can choose to stop accepting donations at any point during the process.

  1. Prequalified loans

There are a lot of lenders who let you prequalify for a loan and transfer the funds within 24 hours. These lenders won’t judge you based on your credit score so if a lender lets you prequalify for a loan, your credit score won’t matter. These are worth looking into, but always be sure to check out the reviews to avoid getting scammed.


Medical bills are one of the highest expenses all Americans pay in their lives. While the cost of preventive procedures might seem unreasonable, remember that taking good care of your health now can prevent serious illnesses later that can result in medical bills of tens or hundreds of thousands of dollars. Keep in mind that getting a personal loan may not be the right move for everyone. Consider all your options before applying for one. In case you decide that a medical loan is a good fit for you, make sure to shop around and compare terms and conditions from different lenders to ensure you get the most reasonable terms.

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