5 Best Medical Loans in 2024
8.99-29.99%
$5K-$100K
None
SoFi is a strong option for good-credit consumers, offering high borrowing amounts, low rates, no fees, and flexible payments.
- Must be at least 18 years old in most states.
- Must be a U.S. citizen, permanent or non-permanent resident, including DACA recipients and asylum seekers.
- Must be employed, have sufficient income from another source, or have an offer of employment to start within the next 90 days.
- Acceptable income sources: Employment, spouse’s income, retirement, alimony, child support, Social Security payments and disability benefits.
- Origination fee: 0% to 7%.
- Late fee: None.
6.99-25.29%
$5K-$100K
660
LightStream targets strong-credit borrowers with no fees and low rates that vary based on loan purpose. It offers high borrowing amounts for financing costly medical procedures or consolidating medical debts.
- Minimum credit score: 660, but can vary depending on the loan purpose and amount.
- Maximum debt-to-income ratio: 50%.
- Minimum credit history: 3 years.
- Income sources accepted: Employment, retirement, rental income, alimony, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident who is at least 18 years old and has a U.S. bank account.
- Origination fee: None.
- Late fee: None.
9.99-35.99%
$1K-$50K
580
Upgrade has a low minimum credit score requirement, and it offers multiple rate discounts on personal loans.
- Minimum credit score: 580.
- Minimum number of accounts on credit history: One account.
- Maximum debt-to-income ratio: 75%, including mortgage payments.
- Minimum length of credit history: Two years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
7.80-35.99%
$1K-$50K
None
Upstart may be a good fit for borrowers who are new to credit, since the lender considers other factors, including education and employment, in the application process.
- Must be a U.S. citizen or permanent resident living in the U.S.
- Must be at least 18 years old in most states.
- Must have a valid email address and Social Security number.
- Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
- Must have a personal bank account at a U.S. financial institution with a routing number.
- No bankruptcies in the last 12 months.
- No current delinquent accounts on your credit reports.
- Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
- Minimum credit score: None.
- Minimum annual income: $12,000.
- Origination: 0% to 12%.
- Late fee: 5% of the unpaid amount or $15, whichever is greater.
- Insufficient funds fee: $15.
9.06-35.99%
$1K-$40K
600
LendingClub is an option for good-credit borrowers. It also accepts co-applicants, which can increase the odds of qualifying.
- Minimum credit score: 600; average borrower score is above 700.
- Minimum income: None; lender requires proof of income. Borrower average is $100,000 per year.
- Maximum DTI: 40%.
- Minimum credit history: 36 months and two accounts.
- Origination fee: 3% to 8%.
- Late fee: 5% of payment or $15 after 15-day grace period.
- Insufficient funds: $15.
7.99-35.99%
$2K-$50K
600
For qualified borrowers, Best Egg can fund loans within a day after approval. Customers can access Best Egg's free financial health tool.
- Minimum credit score: 600.
- Maximum debt-to-income ratio: 70% including a mortgage.
- Minimum credit history: 3 years and 1 account.
- Acceptable income sources: Employment, household income, alimony, retirement, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident and at least 18 years of age.
- Origination fee: 0.99% - 9.99%.
Prosper accepts borrowers across the credit spectrum and offers competitive rates and fees, plus instant approval.
- Minimum credit score: 560; borrower average is 705.
- Minimum income: No minimum requirement; borrower average is $131,000.
- Maximum debt-to-income ratio: 50% (excluding mortgage); borrower average is 41.6% (including mortgage).
- Must be at least 18 years old.
- Must provide Social Security number and a U.S. bank account.
- Origination fee: 1% to 9.99%.
- Late fee: The greater of $15 or 5% of the unpaid amount.
- Insufficient funds fee: $15.
- Mailed-in payment fee: $5.
SoFi is a strong option for good-credit consumers, offering high borrowing amounts, low rates, no fees, and flexible payments.
- Must be at least 18 years old in most states.
- Must be a U.S. citizen, permanent or non-permanent resident, including DACA recipients and asylum seekers.
- Must be employed, have sufficient income from another source, or have an offer of employment to start within the next 90 days.
- Acceptable income sources: Employment, spouse’s income, retirement, alimony, child support, Social Security payments and disability benefits.
- Origination fee: 0% to 7%.
- Late fee: None.
LightStream targets strong-credit borrowers with no fees and low rates that vary based on loan purpose. It offers high borrowing amounts for financing costly medical procedures or consolidating medical debts.
- Minimum credit score: 660, but can vary depending on the loan purpose and amount.
- Maximum debt-to-income ratio: 50%.
- Minimum credit history: 3 years.
- Income sources accepted: Employment, retirement, rental income, alimony, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident who is at least 18 years old and has a U.S. bank account.
- Origination fee: None.
- Late fee: None.
Upgrade has a low minimum credit score requirement, and it offers multiple rate discounts on personal loans.
- Minimum credit score: 580.
- Minimum number of accounts on credit history: One account.
- Maximum debt-to-income ratio: 75%, including mortgage payments.
- Minimum length of credit history: Two years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
Upstart may be a good fit for borrowers who are new to credit, since the lender considers other factors, including education and employment, in the application process.
- Must be a U.S. citizen or permanent resident living in the U.S.
- Must be at least 18 years old in most states.
- Must have a valid email address and Social Security number.
- Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
- Must have a personal bank account at a U.S. financial institution with a routing number.
- No bankruptcies in the last 12 months.
- No current delinquent accounts on your credit reports.
- Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
- Minimum credit score: None.
- Minimum annual income: $12,000.
- Origination: 0% to 12%.
- Late fee: 5% of the unpaid amount or $15, whichever is greater.
- Insufficient funds fee: $15.
LendingClub is an option for good-credit borrowers. It also accepts co-applicants, which can increase the odds of qualifying.
- Minimum credit score: 600; average borrower score is above 700.
- Minimum income: None; lender requires proof of income. Borrower average is $100,000 per year.
- Maximum DTI: 40%.
- Minimum credit history: 36 months and two accounts.
- Origination fee: 3% to 8%.
- Late fee: 5% of payment or $15 after 15-day grace period.
- Insufficient funds: $15.
For qualified borrowers, Best Egg can fund loans within a day after approval. Customers can access Best Egg's free financial health tool.
- Minimum credit score: 600.
- Maximum debt-to-income ratio: 70% including a mortgage.
- Minimum credit history: 3 years and 1 account.
- Acceptable income sources: Employment, household income, alimony, retirement, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident and at least 18 years of age.
- Origination fee: 0.99% - 9.99%.
Prosper accepts borrowers across the credit spectrum and offers competitive rates and fees, plus instant approval.
- Minimum credit score: 560; borrower average is 705.
- Minimum income: No minimum requirement; borrower average is $131,000.
- Maximum debt-to-income ratio: 50% (excluding mortgage); borrower average is 41.6% (including mortgage).
- Must be at least 18 years old.
- Must provide Social Security number and a U.S. bank account.
- Origination fee: 1% to 9.99%.
- Late fee: The greater of $15 or 5% of the unpaid amount.
- Insufficient funds fee: $15.
- Mailed-in payment fee: $5.
What is a medical loan?
A medical loan is a type of unsecured personal loan. Personal loans are fixed-rate loans you pay back over a set term, typically two to seven years. Unsecured means the loans do not require collateral. Banks, online lenders and credit unions all offer personal loans, but interest rates and features can differ among lenders.
Medical loans can be used for expenses like:
Emergency room visits.
High deductibles.
Out-of-network charges.
If you have outstanding medical debt already, a medical loan with a low rate can help consolidate debt into one monthly payment for the loan term, which can help you pay it off faster.
» MORE: Best debt consolidation loans
Pros and cons of medical loans
Pros
A medical loan can cover expected and unexpected medical costs.
Some online lenders have fast approval and funding.
A low-interest loan can be a good way to consolidate existing medical debt.
Cons
Lowest rates are only for good- or excellent-credit borrowers.
Some lenders have origination fees.
They may have higher interest rates than other options.
How to get a medical loan
The process to get a medical loan is generally the same as for any personal loan:
Know your credit score: Your credit score is a key factor in determining whether you qualify for a loan and how much you can borrow. You can check your credit score for free on NerdWallet.
Figure out how much you can afford: Use a personal loan calculator to estimate monthly payments and determine whether they fit comfortably within your budget.
Pre-qualify and compare loans: Pre-qualifying lets you see potential loan terms, including the loan’s interest rate, loan amount and payments, without impacting your credit score. Compare offers from multiple lenders and identify the best loan for your needs and budget.
Complete the application: Once you’ve decided on a lender, you can formally apply. Lenders typically send the loan proceeds directly to your bank account, with funding available within a few days after approval.
» MORE: Requirements for a personal loan
How to choose a medical loan
Below are factors to consider when selecting the best medical loan.
Annual percentage rate. A loan’s APR represents the true cost of borrowing, including interest and fees, and ranges from about 6% to 35.99% on personal loans. APRs can help you compare apples-to-apples between different loans and lenders — the loan with the lowest APR is generally the cheapest. To get the lowest rates, you'll need excellent credit.
Origination fee. Some lenders charge one-time origination fees to cover the cost of processing a loan. The fee typically ranges from 1% to 10% of the loan amount, and most lenders subtract the origination fee from the loan proceeds. For example, a $5,000 loan with an origination fee of 3% would cost $150, leaving you with $4,850.
Loan term. The length of the repayment period affects your monthly payments. A longer repayment term results in lower monthly payments but higher total interest paid over the life of the loan. Aim for a loan term with payments that fit within your budget.
Speed. If you need fast funding to cover health care costs, consider a lender with a quick approval and funding process. Some online lenders can provide loan funds as quickly as the same day.
Medical loans for bad credit
If you have fair or bad credit (689 credit score or lower), you may receive a high APR on your medical loan, which means you’ll pay more in interest over the loan term.
Here is what that can mean for your costs: a five-year, $5,000 loan with a 21.99% interest rate would cost $3,284 in interest payments. The same loan at 35.99% APR leads to a total interest cost of $5,838, which is more than the original loan amount. Financial experts generally advise that APRs should not exceed 36%.
There are ways for borrowers with low credit scores to improve their credit. Here are a few steps you can take:
Review your credit report: Check your credit report to ensure there are no errors, wrong accounts or incorrect credit limits that may negatively impact your credit score.
Add a co-signer: A co-signer can help your loan application. Your chances of getting approved may increase, or you may get a lower APR on the loan. But keep in mind that your co-signer will be held responsible for any missed loan payments.
Pre-qualify: Getting pre-qualified with a soft credit check can help you identify lenders and terms that fit you best, without impacting your credit score. Taking this additional step may help you avoid being rejected on a formal loan application, which requires a hard credit check and can drop your credit score a couple of points.
Alternatives to medical loans
Here are other ways to pay for medical procedures or pay off medical debt that may be better for your wallet than a medical loan.
Payment plans. Payment plans provided by your medical provider may be a cheaper way to pay for health care expenses. Plans can be interest-free and generally require monthly payments for a set term. Some health care providers require a deposit followed by monthly payments, while others accept just monthly payments until the debt is repaid in full.
Ask your medical provider about any fees or charges associated with the payment plan so you know the total cost of this option.
Credit card for medical expenses. CareCredit is one example of a specialty credit card for medical expenses that offers short-term financing. The card, issued through Synchrony Bank, is accepted by over 260,000 health care providers. CareCredit can cover medical events related to LASIK surgery, dentistry, cosmetic surgery and general health care.
Approved borrowers may receive 0% interest for a promotional period of six, 12, 18 or 24 months for expenses above $200. However, if the balance is not paid off by the end of the term, CareCredit will charge interest retroactively from the purchase date. The standard APR for CareCredit financing is 29.99%, which may be higher than rates on other credit cards.
0% credit card. A 0% interest credit card is another option that can include perks like a sign-up bonus and rewards. You’ll need strong credit to qualify, and you must pay off the debt in full before the promotional period expires or you'll pay high-interest charges.
It’s best to dedicate one credit card for medical expenses to make keeping records for tax deductions or a health savings account easier.
Qualify for assistance. If you're experiencing economic hardship, you may qualify for a hardship plan from your health care provider or financial assistance from a charity organization or government program. Look to these options first before taking out a loan.
Other options. If you’re facing hospital bills, a medical bill advocate can help spot potential errors and negotiate on your behalf to reduce your total bill. You can also work with services like CoPatient, which can locate mistakes on your medical bills and negotiate lower rates.
» MORE: Ways to pay medical debt
Last updated on December 15, 2023
Frequently asked questions
- What is a medical loan?
A medical loan is an unsecured personal loan that can be used to cover health care costs.
- What can a medical loan be used for?
Medical loans can be used to pay for medical expenses like emergency room visits, checkups or dental work. Loans also cover medical procedures like plastic surgery, LASIK surgery, IVF or gender-affirming surgery.
- What credit score do you need for a medical loan?
Credit score requirements vary by lender. Check the lender’s website to find out the minimum credit score they will accept.
- Can you get a medical loan with bad credit?
You can get a medical loan with bad credit, but you may pay more interest. Avoid getting a loan with an interest rate above 36% or taking on monthly payments you cannot afford.
Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 50 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
NerdWallet's 5 Best Medical Loans in 2024
- SoFi Personal Loan: Best for Medical loans for large amounts
- LightStream: Best for Overall medical loans
- Upgrade: Best for Medical loans for bad credit
- Upstart: Best for Medical loans for thin credit
- LendingClub: Best for Medical loans for co-applicants
- Best Egg: Best for Medical loans with fast funding
- Prosper: Best for Medical loans for flexible terms
