Medical Loans for Poor Credit: Call A Doctor

Medical Loans for Poor Credit

For the longest time, I figured my health was fine. I thought I would never need those Medical Loans for Poor Credit I felt good, didn’t have aches or pain, and no signs of debilitating diseases. What I didn’t foresee was my falling off a ladder and shattering my ankle. It was really bad. So bad that the doctor thought that I might be looking at an amputation if the healing didn’t go the way it should have. It was not a good feeling at the time, let me tell you. Fortunately, things turned around and I finally got back on track to healing right. I kept my foot and ankle joint and I’m back to normal. You wouldn’t know I had a catastrophic injury that almost cost me my foot and ankle joint. But now I have a bigger problem: medical debt.

Medical Loan for Poor Credit? Find the Cure

See, I have health insurance. However, like many, it’s got a high deductible and the insurer decided to dump a lot of the bills onto me instead of paying for them like they were supposed to. Another problem is that I had multiple surgeries on the ankle. Which meant that there were a lot of different professionals billing me for their work. All because the insurance company denied a lot of the claims. I was frustrated, in tears a lot, and not sure what to do. Then I decided to hit up the search engines and found out about getting a loan for medical bills. The problem is, I have bad credit. How could I get a loan?

Can I get Medical Loans for Poor Credit?

I’ll admit it: my credit is bad. I got into trouble because I got laid off from a job. It took me a while to get employed again. That left me picking Medical Loanand choosing which bills to pay every month. Something I’m not proud of. Now I’m back on my feet, so to speak, and working steadily again. However but it’s taking me a long time to get back on track. That’s why I wondered if I was going to be eligible for medical loans for poor credit. Much to my surprise, I found out that Yes. I am eligible!

What’s the Best Way to Find a Loan for Medical Bills?

Do what I did and find a lender with experience in funding bad credit medical loans.  I found that a lender that focuses on this type of loan product is much easier to work with. The lender already “knows” my story and has dealt with people in my situation before. But instead of not lending to people with bad credit, they take the risk and charge higher interest rates to cover that risk. Check reviews to find out what kind of experience people have had with lenders and look for the fine print.

If you know people who’ve gone through a similar experience, you can always ask them for a referral to their lender. However, word of mouth is only so reliable because everyone has a different perception of their experience. Take the time to investigate the lender to determine if they match up with what your friend is telling you about them. Remember: you are borrowing money from someone to settle a debt. You want to make sure that you’re working with a lender that intends to treat you fairly.

Why Should I Use a Medical Finance Lender?

An experienced lender won’t give me a hard time over the request for funding, nor will they make me jump through hoops to prove my income, then deny me. They are in the business of providing loans to people who have gone through hard times and are actively seeking to fix things. The lender is giving me the opportunity to prove that I’m worthy of the loan and I’m going to take care of my end by repaying the loan in a timely manner. I found that going this route was the easiest way to get the money I needed to take care of my medical debt.

Filing Bankruptcy for Medical Debt Wasn’t an Option

I could have just gone ahead and filed for bankruptcy to clear my outstanding debts and start fresh. The idea was appealing, I will admit. But even though I’m more than eligible, I didn’t want to go that route. For one, the total amount of my outstanding debt wasn’t that big. Filing bankruptcy wouldn’t have done me any favors. Except to screw up my credit even more for a while. Plus I’m employed in an industry that frowns on bankruptcy. So, I’d rather not do it at all.

Credit Cards Charge Too Much Interest

Even though I have bad credit, I still have credit cards with available credit limits. But I didn’t want to use them either for a number of reasons. The main reason is that the interest rates on the cards are very high. It makes it even harder for me to repay the balances. If I used the cards, I would get close to their limits and I wouldn’t have access to the credit line for an emergency. It didn’t make sense to use them and dig myself into a deeper hole.

I could have done the whole balance transfer game. However, that means I have to pay attention to the expiration on the balance transfer. And then I have to hope that I’ll get another offer for a balance transfer at a low-interest rate going forward. I do get the offers, even with bad credit. But again, they require too much work to be worth my time.

Traditional Lenders Don’t Want to Talk to Me

I’m aware that I’m going to pay higher interest rates on my loans because a lender views me as a risky borrower. That’s what bad credit is all about. My job loss that caused me to juggle my debt is going to haunt me for a long time because lenders don’t really care about what happened to me. All they care about is the fact I look bad on paper. They see that I was frequently late on payments and it wasn’t that long ago. A traditional lender doesn’t like seeing that. They don’t have to take me on as a borrower. Why should they when they have plenty of well-qualified customers with excellent credit seeking to borrow from them? I’ve fixed my issues, brought myself current with my bills. However, this stuff is going to haunt me for a while.

I know that I’m going to get turned down by a traditional lender. Even if I have a credit card or checking account with them. Even though the lender can see my repayment history and bank deposits, they don’t have to judge me based on that information. All they need to do is look at my bad credit report and turn me down. It’s not worth bothering with. So I found another source of lending in the form of medical loans for poor credit.

Medical Loans for Poor Credit Was the Answer

Financing debt with a medical finance loan, and let’s face it, this is what I’m doing, made the most sense. Yes, the interest rate is high, way higher than the prime rate, but it’s not nearly as high as a credit card. And, unlike a credit card, it won’t fluctuate if the prime rate goes up or down. It stays the same throughout the life of the loan. That means my monthly payments are predictable and go towards reducing the balance of my debt instead of chipping away at it. At least I get a light at the end of the tunnel instead of getting stuck in an endless cycle of debt.

Medical Financing Options for Any Reason

What is Medical Financing?

I was a bit surprised to find out that there’s such a thing as medical loans for poor credit. But it made a lot of sense when I thought about it. There’s no way I’m getting out from underneath the bills. I might be able to get them reduced because insurance isn’t covering them, but that’s something I can’t rely upon. Nor can I rely upon medical billing departments to play fair with me. Before I took out a loan, I did the research and this is what I learned:

Medical loans are sometimes called personal loans. They are unsecured which means they don’t require an asset to secure the loan’s repayment like a house or a car. They typically have a requirement that the funds can only be used for the repayment of medical debt. Interest rates on a loan for medical bills can vary widely, but they’re usually in line with the credit score. As in the lower the score, the higher the interest rate. Medical finance loans can be as small as a thousand dollars and go as high as six digits.

Benefits of Medical Loans for Poor Credit

I have zero intention of ever getting behind on my bills ever again if I can humanly help it, but it takes time to recover from missed payments. The good thing about medical loans for bad credit is, while they add to my outstanding debt balances, they work in my favor as I repay them.

Remember what I said about the balance getting reduced at a steady pace? That’s something that works in my favor because the lender tells the credit reporting agencies about my timely repayments. It’s true that my other outstanding debts are doing the same, but the impact to my credit score isn’t as great. The interest on my credit cards keeps the balances high and makes it harder for me to get them lower. What the credit reporting agencies see is someone who’s carrying a debt load that’s not going down. But the medical loans for poor credit do go down and it looks good for me in the long run with my credit score.

The medical debt exists no matter what I might have to say about it. I’m going to have to pay that off if I’m to keep improving my credit score. The problem is, a lot of medical providers don’t want to work with me, or anyone else for that matter, on a repayment plan with an equitable outcome. Hospitals are quick to send debts to collections even when they’re current and have an agreed-upon repayment plan. I really don’t want to spend a lot of time chasing down a hospital billing department to make them hold up their end of the deal.

Medical Loan Can Be Your Solution

Getting a loan for medical bills means I don’t have to deal with billing departments that don’t play fair and don’t care about my attempts to repay them. It’s a load off my shoulders and I get the debt resolved so it doesn’t have to haunt me for years to come.

The loan repayments last anywhere from one year to three years depending on terms and how much is borrowed. Some loans last longer, but my advice is to get a loan that you can easily repay in the shortest amount of time possible. You retire the debt sooner and can focus on reducing your other debts that much sooner.

How Can I Get a Medical Loans For Poor Credit?

You’re asking this question because you’re probably still thinking that you can’t get a medical financing with bad credit. I’m telling you that you absolutely can get a loan for medical bills even if your credit is lousy. What you don’t want to do is take the first medical finance loan that you find without doing the research first. You want to know things like:

  • What’s the length of the loan?
  • What’s the interest rate and is it fixed?
  • How much can I borrow with my current credit score?
  • Are there penalties for early repayment?
  • What’s an average monthly repayment?

You need to ask these questions because they’re important. They’re the same ones I asked when I started researching loans for medical bills. I had to determine how much money I could afford to repay every month, how I could get the lowest possible payment, and if the interest rate is fixed. Not all medical loans are created equal: some will charge exorbitant interest rates that make the problem worse, not better. My goal was one of get in quick, get out fast, and not stretch my budget. When I used the above criteria, I was able to find a loan that fits all of my needs.

Should I use Peer-to-Peer Lending?

I asked myself this question when I was searching for medical loans online. It’s something that came up a lot in my search hits and I figured it was a worthwhile topic to investigate. Ultimately I decided against going with peer-to-peer lending and here’s why:

Peer-to-peer lending is a type of lending where strangers put up money for your loan request. It operates outside of traditional banking and supposedly has lower lending requirements than traditional loans do. The problem I ran into with peer-to-peer is while, yes, they do have lower lending standards in that they will accept people with bad credit ratings, they still underwrite the loans the same as a bank. Underwriting is basically an investigation into your income to prove you’re capable of repaying the loan.

While there’s nothing wrong with taking out a loan that’s being underwritten, you have to provide proof of employment and income. If you’re an independent contractor, which many people are nowadays, it’s harder to show that your income is steady and reliable. Combine that with having less-than-stellar credit and peer-to-peer becomes a much less attractive option.

Conclusion

I never intended to shatter my ankle, but yet, it happened and here I am to talk about it. The medical industry is going to get paid regardless. Since it can’t go after an insurer for outstanding balances, it came after me even though I couldn’t really afford to repay the debt on my own. And the billing departments didn’t want to play fair, didn’t care about my credit rating, and didn’t want to work with me on repaying what I owed.

Instead of making things worse for me in terms of my credit rating, I decided to get a medical loan to take care of the debt and keep improving my credit score. It was the best solution to the problem, and I was able to get the billing departments to leave me alone. It’s something I’m glad that I did because it brought me peace of mind and relief that I could get my life back on track without debt collectors hounding me for payment.

 

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