Best Medical Loans in 2024

Medical loans come as a lump sum of cash and can help relieve the stress that comes with out-of-pocket medical costs

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Written by
Carol Pope
Updated October 01, 2024
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Medical loans at a glance

BHG Financial: Best for big medical loans

11.96% - 25.31%

36 to 120 months

$20,000 - $200,000

660

3.00% - 4.00%

Pros
  • Can borrow up to $200,000
  • Allows up to 120 months to repay
  • Accepts less-than-perfect credit
Cons
  • Will only work for big medical bills since the least you can borrow is $20,000
  • Will keep 3.00% - 4.00% of your loan for itself as an origination fee
  • Can take up to five days to get your money

What to know

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If you’re looking for medical loans for surgery (or another big medical expense), consider BHG Financial. This lender offers large loans and long repayment terms to match. Plus, it accepts fair credit (although a lower score will limit how much you can borrow).

If you plan on getting a large loan, BHG Financial’s origination fee can be steep. For instance, a $200,000 loan with an 4.00% origination fee means BHG will keep $8,000.

Read our full BHG Financial personal loan review.

How to qualify

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To get a loan from BHG Financial, you’ll need to meet the following requirements:

  • Credit score: 660
  • Administrative: Have a Social Security number and email address
  • Residency: Can’t live in Illinois

BHG Financial accepts credit scores as low as 660. Its average borrower has a score of 744, no past bankruptcies or collections and an annual income of $241,000. You can also check rates and eligibility with no impact to your credit.

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LightStream: Best for no fees

9.49% - 25.49% (with autopay)

24 to 84 months

Loan Term Disclosure

Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $25,000 loan at 7.49% APR with a term of 3 years would result in 36 monthly payments of $777.54. © 2024 Truist Financial Corporation. Truist, LightStream and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.

$5,000 - $100,000

Not specified

None

Pros
  • No fees whatsoever
  • Has a rate matching program
  • If you’re unsatisfied, you could qualify for $100 through LightStream’s Loan Experience Guarantee
Cons
  • Must have good to excellent credit
  • Loans start at $5,000, which may be more than you need
  • Can’t check rates without hurting your credit

What to know

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LightStream offers online loans with no fees. It also has a rate matching program called Rate Beat. If you get a better rate while you’re shopping around, LightStream might beat it by 0.10 percentage points (stipulations apply).

LightStream only lends to borrowers with good credit or better. And since it doesn’t offer prequalification, you have to take a hard credit hit to check your eligibility.

Read our full LightStream personal loan review.

How to qualify

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You must have good to excellent credit to qualify for LightStream. Most of the applicants that LightStream approves have the following in common:

  • At least five years of credit history showing on-time payments under a variety of accounts (credit cards, auto loans, etc.)
  • Stable income and the ability to handle paying their current debt obligations
  • Savings, whether in a bank account, investment account or retirement account
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PenFed Credit Union: Best for small medical loans

8.99% - 17.99%

12 to 60 months

$600 - $50,000

Not specified

None

Pros
  • Can borrow as little as $600
  • Credit union membership is open to everyone
  • Thanks to a low maximum APR, you can enjoy competitive rates even if you just barely qualify
Cons
  • Must join the credit union to borrow
  • Lackluster mobile app reviews from Android users
  • Might not qualify if you have fair or bad credit

What to know

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PenFed Credit Union could be a solid choice if you have to pay a smaller medical bill, like a deductible. With PenFed, you can borrow as little as $600. Since it’s a credit union, you have to be a member to borrow, but anyone is welcome to join.

PenFed doesn’t specify its minimum credit score requirement. You can check rates with a soft credit pull, even if you aren’t a current member.

Read our full PenFed personal loan review.

How to qualify

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To qualify for a PenFed loan, you must meet the following requirements:

  • Membership requirements: PenFed membership (anyone can join)
  • Administrative: Open a PenFed savings account with $5 deposit; may need to submit documents to verify your identity and income
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SoFi: Best for fast medical loans

8.99% - 29.99% (with discounts)

Pricing Disclosure

Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive. Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi. Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.

24 to 84 months

$5,000 - $100,000

680

0.00% - 7.00% (optional)

Pros
  • Most get their loan the same day they’re approved
  • Offers free consultation with a financial planner
  • Customer support available via live chat
Cons
  • Must pay optional origination fee for the lowest rates
  • Doesn’t make sense for smaller medical bills
  • Won’t qualify with bad credit

What to know

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Emergency loans can be a lifesaver if you’ve been hurt in an accident or diagnosed with an illness. That’s where SoFi might help. It states that from 2022 to 2023, 82% of SoFi borrowers got same-day funds (excluding debt consolidation and refinance loans). However, you have to apply before 7 p.m. EST on a weekday.

SoFi loans start at $5,000, so it won’t work for everyone. To qualify for its lowest rates, SoFi will also ask to keep a portion of your loan as an origination fee.

Read our full SoFi personal loan review.

How to qualify

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You must meet the requirements below in order to get a loan from SoFi:

  • Age: Be the age of majority in your state (typically 18)
  • Citizenship: Be a U.S. citizen, an eligible permanent resident or a non-permanent resident (a DACA recipient or asylum-seeker, for instance)
  • Employment: Have a job or job offer with a start date within 90 days, or have regular income from another source
  • Credit score: 680
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Upgrade: Best for combining banking with borrowing

9.99% - 35.99% (with discounts)

24 to 84 months

$1,000 - $50,000

580

1.85% - 9.99%

Pros
  • Offers a $200 welcome bonus if you also open a Rewards Checking account when you take out your loan
  • Rewards Checking account holders can get 10.00%-20.00% off of future Upgrade loans and cards
  • Can get up to 2.00% cash back on debit card purchases
Cons
  • Must set up your Rewards Checking account to get direct deposit to get full benefits
  • High rates unless you have solid credit
  • All loans get an origination fee

What to know

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Upgrade is a financial technology company that partners with banks that provide personal loans. It also offers banking products, and its Rewards Checking account has some nice perks. If you open a Rewards Checking account (through Cross River Bank), you could get a welcome bonus, rate discounts and cash back when you use your debit card.

However, you must get at least $1,000 of direct deposits each month to get all of Upgrade’s banking and borrowing benefits.

Read our full Upgrade personal loan review.

How to qualify

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To qualify for an Upgrade loan, you must meet the requirements below:

  • Age: Be at least 18 years old (19 in some states)
  • Citizenship: Be a U.S. citizen, permanent resident or live in the U.S. with a valid visa
  • Administrative: Have a valid bank account and email address
  • Credit score: 580
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Upstart: Best for bad or no credit

7.40% - 35.99%

36 or 60 months

$1,000 - $50,000

300

0.00% - 12.00%

Pros
  • Has one of the lowest credit score requirements on the market
  • Eligible college students and grads don’t need credit to qualify
  • Also has low rates for excellent credit
Cons
  • Can’t apply with a second person
  • If you qualify with bad credit, your could get a rate as high as 35.99%
  • Only two choices of repayment terms (36 or 60 months)

What to know

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Upstart, a lending platform that connects borrowers with partner banks and credit unions, may approve you even if you have bad (or no) credit. It only requires a minimum credit score of 300. And if you have at least an associate degree from an accredited school, Upstart might waive its credit requirements. The same applies to current students working toward an associate degree or higher.

Getting a medical loan with bad credit has its downsides, though. Your loan could come with a hefty origination fee and a relatively high APR.

Read our full Upstart personal loan review.

How to qualify

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Upstart has transparent eligibility requirements, including:

  • Age: Be 18 or older
  • Administrative: Have a U.S. address, personal banking account, email address and Social Security number
  • Employment: Have a job or job offer that starts within six months, or have regular income
  • Credit-related factors: Debt-to-income (DTI) ratio no higher than 50% (45% in Connecticut, Maryland, New York and Vermont), no bankruptcies within the last year, fewer than six inquiries on your credit report in the last six months and no current delinquencies
  • Credit score: 300
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Trustpilot

What is a medical loan?

A medical loan is a personal loan that you use for medical-related expenses. A personal loan gives you a lump sum of money that you’ll pay back in monthly installments.

Most loans for medical bills have fixed interest rates, which means your payment will be the same each month. This could help make budgeting easier (and can help you pay less overall interest when inflation is high).

People often turn to medical loans to pay for:

  • Hospital and rehab bills
  • Illnesses and injuries
  • IVF
  • Elective surgeries
  • Lasik
  • Dental work
  • Deductibles, copays and prescriptions
  • Living expenses after a medical procedure
On this page

Wondering if medical bills can affect your credit?

They used to, but not anymore. Thanks to changes in credit reporting, you have a one-year grace period before medical debt will show on your report. Once you’ve paid your medical debt, the delinquency will be removed from your credit report like it never happened.

Equifax, Experian and Transunion have also removed unpaid medical debt under $500 from credit reports.

That said, it’s always a good idea to check your credit report for errors. Disputing credit reporting errors can take some time, but the work may be worthwhile.

You can get one free report a week by visiting AnnualCreditReport.com.

Pros and cons of medical loans

ProsCons

 Lower rates. Medical loans usually carry cheaper rates than credit cards for people with 720+ credit scores.

 Fixed rates. Personal loans have fixed interest (credit cards have variable). Fixed rates stay the same and don’t fluctuate while you pay what you borrow.

 Predictable billing. Unlike with credit cards, your medical loan payments will be the same each month.

 Interest. Loans don’t have a 0% APR intro period like some medical financing options.

 Not everyone qualifies. It can be hard to get a medical loan if you have bad or no credit.

 Can be expensive. If you do qualify with bad or no credit, expect rates as high as 35.99% (sometimes higher).

How to find a medical loan with LendingTree

  1. Check your credit score. Knowing your credit score before you shop will help you understand if your offers are competitive. Get your free credit score with LendingTree Spring. You can also sign up for credit score alerts so you can keep tabs on your financial health.
  2. Tell us how much you need. Think of LendingTree as your personal loan shopper. You can see offers from up to five lenders with one quick form and no impact to your credit. We have the nation’s largest network of lenders — more lenders means more opportunities for savings.
    3. See Personalized Results
  3. Compare your offers. Choose which offer best aligns with your financial situation and goals. You can adjust your loan amount, repayment term and desired monthly payment so you can stay on top of your budget. When you’re ready, we’ll help you with applying for a personal loan.

How to compare medical loans

  • APR: Your annual percentage rate measures the total cost of your loan, including interest and fees. The higher the APR, the more expensive the loan. Lenders reserve their lowest rates for people with the highest credit scores.
  • Loan terms: A loan term represents how long you have to pay back what you borrowed. Typically, the longer your term, the lower your monthly payments. At the same time, a longer loan term usually means more overall interest. Choose the shortest loan term you can reasonably manage.
  • Loan amounts: Request a loan big enough to cover your expenses. You can’t borrow from the same loan more than once. If you need more money, you’ll have to get another loan.
  • Funding timeline: If you need money fast, target lenders that offer same- or next-day funds. Otherwise, you may need to wait several business days before your loan is available.
  • Fees: The most common fee on a medical loan is an origination fee. If a lender charges an origination fee, it will keep a portion of your loan before sending it to you. Some lenders only charge these if you have bad credit. Others charge origination fees on every loan.
  • Lender reputation: Most lenders are legitimate, but it’s wise to research. Check the Consumer Protection Finance Bureau (CFPB) complaint database to get a feel for a lender’s customer service.
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Medical loans for bad credit

Many lenders require good credit or better to get a medical loan (so a FICO score of at least 670). If you fall short, you may want to take time to improve your credit score before applying.

If you don’t have the luxury of time, the strategies below could help.

  • Apply for a bad-credit medical loan: Some lenders specialize in bad-credit medical loans. These come with higher interest rates and fees. If you’re in dire need of a loan, the extra expense might be worth it.
  • Add a co-borrower: You could add a second person to your application and take out a joint loan. Keep in mind, though, that both your and your co-borrower’s credit will take a hit if you fall behind on your payments.
  • Choose a secured loan: A secured loan requires collateral, usually a valuable piece of property (like your car). Because the lender can repossess your collateral if you stop paying, it might be more willing to offer you a loan.

Alternatives to medical loans

 Consider CareCredit®

CareCredit® could make sense if you’ll need money on a continual basis. CareCredit® is a credit card specifically for medical, dental and vet expenses. It comes with an interest-free financing option between six and 24 months.

However, CareCredit® also has deferred interest. If you don’t pay your balance in full by the end of the promotional period, your interest will be backdated to the time you made the charge.

 Review your medical bill for errors

Medical coding is complicated, and billing departments make mistakes. According to the most recent data from the Centers for Medicaid Services (CMS), 7.38% of Medicare payments are coded incorrectly, leading to more than $31 billion in improper payments.

 Ask about charity care

The Affordable Care Act requires all nonprofit hospitals to provide financial assistance to those who qualify. This is called charity care. Each hospital sets its own eligibility requirements, but typically, you must be low income to qualify.

Your hospital’s billing department or a social worker can help you navigate charity care.

 Set up a payment plan

Your hospital’s billing department may be willing to negotiate a no-interest payment plan for your medical debt. These are sometimes available without any eligibility requirements. Even if you don’t qualify for charity care, a payment plan could still be an option.

How we chose the best medical loans

We reviewed more than 30 lenders to determine the overall best six personal loans. To make our list, lenders must offer medical loans with competitive APRs. From there, we prioritize lenders based on the following factors:

  • Accessibility: Lenders are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
  • Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.

According to our standardized rating system, the best medical loans come from BHG Financial, LightStream, PenFed Credit Union, SoFi, Upgrade and Upstart.

Frequently asked questions

It can be, but it depends on the lender. Some lenders have a high minimum credit score requirement. Others, like Upstart, are willing to work with people who have bad or no credit.
 
Medical loans become more affordable once you hit a 670 credit score. When you have very good credit (740+), you have a good chance of getting a lender’s lowest rates.

Many banks offer personal loans, and a medical loan is just a form of personal loan. But in recent years, some big banks (like Bank of America and Capital One) have pulled out of the personal loan market.
 
Aside from banks, you can find medical loans with credit unions and online lenders. Credit union loans are typically cheaper than online loans, but you have to become a member. Online loans, on the other hand, can be more expensive but are easier to qualify for.

Medical loans can help or hurt your credit. Applying for a loan almost always requires a hard credit pull. This may drop your score by a few points. If you make late payments (or miss them altogether), your credit score will also suffer.
 
But making on-time payments can have a positive impact (your payment history makes up 35% of your FICO score). Taking out a loan when you don’t already have one can also improve your credit mix, which can also have a positive effect.

One of the most important factors mortgage companies review when you apply is your DTI ratio. This measures the amount of money you bring in compared to how much you owe. Your DTI ratio does not include medical debt.
 
Additionally, your medical debt will not impact your eligibility for an FHA loan, a USDA loan and in some cases, a VA loan.