Medical Loan Requirements
Medical loans are offered by most surgeons and lending institutions but the requirements for each will vary. Your credit history is a factor when applying for a loan. Do not be discouraged if you have bad or fair credit as most lenders will still offer you a loan at a higher interest rate or a smaller loan amount.
There are few requirements, but these are pretty standard requirements when receiving a medical loan:
- Must be 18 years of age or older
- No down payment required
- Credit history: bad, good, fair or none – you will find a lender that fits your credit score – keep looking.
Do I need Collateral for a medical loan?
Most medical loans do not require collateral. Collateral is your pledge of a piece of property to repay a loan. If the loan goes unpaid the property then belongs to the lender of the loan. For example, when you borrow money to buy a car the car is the collateral. Same idea for a Mortgage with your home being the collateral.
When researching medical or cosmetic loans there are two types offered: secured and unsecured. Unsecured loans are offered without collateral required to receive your money. Secured loans use will you property as a promise to repay your loan. You should only choose a secured loan if the procedure is an emergency or mandatory for your health as your property will be seized if payment is not made.