Loans for medical treatment are a convenient alternative for individuals unable to finance their surgery. Due to the skyrocketing healthcare costs, it becomes extremely difficult for some to pay for their treatment.
Did you know?
7% of adult Americans declared bankruptcy owing to their medical bills between 2015-17.1
The loans for medical treatments such as dental work and bariatric surgery may either be secured or unsecured.
Secured loans involve security (usually the borrower’s assets) till the time the amount is fully repaid.
According to Wikinvest, unsecured loans for weight loss surgery and other treatments do not require any security but have a higher rate of interest.2
Why are Loans for Medical Treatment Required?
Besides being expensive, certain medical treatments, such as weight loss surgery and plastic surgery, are not covered by insurance policies. Even if they are, the insurance coverage is limited. This creates the need for an avenue that can provide funds for your surgery.
Did you know?
Health insurance in the United States has become less affordable since 2015. In 2017, 37% of the adults were unable to pay their premiums as compared to 27% in 2015.1
If your insurance policy does not cover surgery, you can explore the following options:
- Opt for a medical/personal loan
- Check if you qualify for Medicaid
- Consult a medical tourism company that assists in arranging loans as well as cheaper surgery abroad
In certain states in the USA, giving coverage to weight loss surgery is mandatory.3
What are Medical Loans?
Medical loans have become an attractive option for individuals seeking treatment but lacking the finances to self-pay for surgery. In fact, there are specialized medical tourism companies that can help you get a medical loan apart from arranging for your treatment and the surgery trip.
According to National Bankruptcy Forum, an unexpected medical bill of $500 is too much to pay for about 45% of Americans.1
The medical loans are likely to cover the cost of:
- Medical bills
- Hospital charges
- Other treatment-related miscellaneous expenses
There may be times when a bank may not offer medical loans. In such a scenario, one can go for personal loan. The formalities for availing a personal loan would be somewhat different from that of a medical loan.
Usually in the former, the exact reason for availing it is not asked.
More people are also lured towards personal loans since there is no collateral involved. Despite the interest rates being higher, personal loans attract people because of loose restrictions.3
Interesting Fact – The interest on personal loans decreases as an individual gets older!3
Healthcare Financing for Medical Treatment
Apart from the banks, many other financial organizations have come up with the option of providing finances specifically for medical treatment.
For instance, United Medical Credit and E-Financing Solutions are two non-banking entities that provide finances specifically for medical treatments, such as bariatric surgery and dental surgery.
Some of the benefits of availing loans from these organizations are:
- Multiple plans to choose from as per your requirement
- Simpler process
- Easy and quick access to your medical treatment
- No need to wait and accumulate savings for getting the treatment
Bad Credit Score Hindering Your Bariatric Surgery Or Other Treatment?
Credit score is a numerical expression that represents the creditworthiness of an individual. It reflects on how efficiently an individual has been honouring the credit payments in the past. The credit score of a person decides for an individual’s qualification and limits for loan.
Sometimes, the bad credit score of an individual becomes a hindrance for availing a loan.
To help the individuals with this issue, medical tourism companies help arrange finances for the patients.
Considering surgery through us? Contact us now to know your options!
Factors Affecting Credit Score
The credit score of an individual depends on certain factors, some of which are discussed below:
- Payment History: This includes timely payment of bills, if your accounts have gone back for collection, if there are any charge offs, or foreclosures, etc.
- Amounts Owed: This includes the extent to which you have used your available credit, and the amount you owe to specific accounts and in total.
- Length of Credit History: This factor considers the length of time you have been using the credit. A long history proves to be helpful. However, a short history may be good as well if the payments are being made on time.
- New Credit: This considers the number of new accounts you have recently opened. A higher number of new accounts has a negative impact on your credit score as it is indicative of your cash problems.
- Types of Credit in Use: This considers the mix of different types of credit in use, such as credit cards, store accounts, instalments, loans, etc.4
Loans are indeed a silver lining for individuals with unavailability or shortage of funds to self-pay a medical treatment abroad. They are convenient too as the amount borrowed can be paid in easy instalments over a period of time.
For more information on loans for surgery abroad and FREE pricing, contact us now!
- 10 Statistics about US Medical Debt that will shock you (2017), National Bankruptcy Forum, Available at: http://www.natlbankruptcy.com/us-medical-debt-statistics/ [Accessed on 3 November 2017]
- Unsecured Loans, Wikinvest, Available at: http://www.wikinvest.com/wiki/Unsecured_Loans [Accessed on 6 November 2017]
- Ponder Crissinda (2016). Survey: Millions consider borrowing with a personal loans, Available at: http://www.bankrate.com/loans/personal-loans/survey-millions-consider-borrowing-with-a-personal-loan/ [Accessed on 25 October 2017]
- Fontinelle Amy (2016). The Biggest five factors that affect your credit, Investopedia, Available at : http://www.investopedia.com/articles/pf/10/credit-score-factors.asp [Accessed on 30 October 2017]