4 Best Medical Loans for Bad Credit in 2025

What is a medical loan for bad credit?

A medical loan is an unsecured personal loan used for planned or emergency health care expenses. Unsecured personal loans don’t require collateral, and they have fixed interest rates. Personal loans are paid back in monthly installments over the loan term, generally from two to seven years.

Medical loans can be used for out-of-network charges, emergency procedures or high deductibles. Individuals and families without insurance coverage may consider a loan for health care needs.

Specific uses for medical loans include:

• Dental work.

• Cosmetic surgery.

• LASIK.

• Mental health treatments.

• IVF and fertility treatments.

• Gender-affirming surgery. 

• Pet care.

If you have multiple medical bills, a loan can also be used to consolidate those expenses into a single monthly payment.

How to compare medical loans for bad credit

Getting a medical loan with bad credit may require some shopping around. As you look at different lenders, consider these factors.

APRs: Annual percentage rates for personal loans typically range from 6% to 36%. While your credit score can significantly influence the APR you receive, some lenders consider additional criteria like education or job history. Still, borrowers with bad credit can expect an APR at the higher end of a lender's range.

Fees: Some lenders charge an origination fee to cover the loan processing cost. This fee can range from 1% to 10% of the total loan amount and is typically deducted before disbursement. Other fees may include late payment fees.

Loan amounts and terms: Depending on the lender, loan amounts can range from $1,000 to $50,000. Know how much you need for your medical expenses, as borrowers with low credit scores may not qualify for the highest loan amounts. Loan terms affect your monthly payment amount and total interest costs. A shorter term may mean higher monthly payments, while a longer term can cost more in interest.

For example, here’s how the loan term affects a $5,000 loan with a 21% APR:

Credit reporting: Making consistent on-time payments toward your loan can help improve your credit. Choose a lender that reports your payments to at least one major credit bureau — and preferably all three (Experian, Equifax and TransUnion).

Funding time: Consider the amount of time it will take to receive the money. Is the medical expense an emergency now or a procedure planned for the future? Some online lenders approve and disburse loan funds the same day after approval, while others take up to a week.

Customer support: Some lenders provide support through multiple customer contact channels, including an app, while others may offer assistance by phone or email only. Consider how you would like to manage your account and the level of customer support you might need.

How to get a medical loan with bad credit

1. Review your credit score

Your credit score can determine your eligibility for a loan and how much you can get. Check your credit report for free and look for any errors, like incorrect delinquencies or accounts that aren’t yours. Try to resolve past-due balances on your accounts since missed payments can significantly impact your credit scores.

» MORE: Tips to improve your credit score fast

2. Figure out what to budget for

Your medical expenses will often determine how much you need to borrow, but you can also use a personal loan calculator to determine what you can afford. You’ll want a medical loan with monthly payments that fit comfortably in your budget.

3. Get pre-qualified

Pre-qualifying allows you to see the potential APR and loan amount you may qualify for with each lender, so you can compare offers and choose the best one for your budget. Most online lenders allow you to pre-qualify for a loan using a soft credit check, which doesn’t affect your credit score. Some banks and credit unions also offer pre-qualification.

» MORE: Pre-qualify with multiple lenders for free on NerdWallet

4. Add a co-borrower or collateral

Co-signed, joint or secured loans are less risky for lenders and can increase your likelihood of approval. You may even get a lower rate.

Both joint loans and co-signed loans allow you to add someone — ideally a person with a higher credit score or larger income than you — to your loan application. In both cases, the additional applicant is responsible for repaying the loan should you fail to do so, though only in a joint loan do they have equal access to the loan funds.

A secured loan requires you to pledge collateral (like your car or a savings account) to help guarantee the loan. However, if you fail to repay, you can lose the collateral.

5. Apply

Once you choose a lender that best fits your needs, you can formally apply for the loan.

Most lenders let you complete the application through their website and may ask for supporting documents, like proof of identification, address and income, as well as your Social Security number. Once approved, the funds will be deposited into your bank account, sometimes as early as the same day you’re approved.

» MORE: Tips to boost your chances of approval

Other ways to pay medical bills

It's best to consider a medical loan only after you’ve tried low- or no-cost options. Here are other funding options to help you cover medical costs.

Payment plan: Medical providers may offer payment plans that allow you to pay a medical bill in monthly installments, typically with no interest. The amounts and terms depend on the agreement you negotiate with the provider.

Family loan: A family loan can be a low-interest option to fund medical expenses. A successful arrangement includes a formal written agreement outlining interest and terms between family members. Also, consider IRS guidelines and a family loan's impact on the relationship.

Credit union loan: Credit unions are not-for-profit organizations that may offer loans with lower interest rates and more flexible terms than online lenders. During the application process, they’re also more likely to consider your overall financial picture. Credit unions require becoming a member first before you apply, and some may not offer the option to pre-qualify.

CareCredit: CareCredit is a specialty credit card for financing health care expenses. The card can be used at more than 270,000 health and wellness providers, and applicants are subject to credit approval. CareCredit has a standard APR of 32.99%, but there are promotional financing options like zero-interest terms, which require you to pay the balance in full by a set time to avoid retroactive interest charges.

Nonprofit or charity: The Patient Advocate Foundation and the National Organization for Rare Disorders are nonprofit organizations offering payment assistance for medical expenses like copays, medications and treatment. PAF works with patients with chronic illnesses, while NORD supports patients with rare diseases.