Medical debt is a complicated issue — and an emotional one.
The medical billing system is complex. It’s not always easy to figure out how much you’ll need to pay to get the care you need. Whether you need treatment for a medical emergency or an elective surgery, paying for an expensive procedure can be tough.
Taking out a loan or opening a credit card for medical expenses may seem like a tempting option, especially if you’re already struggling to pay your medical costs and don’t have the health insurance you need to cover them.
We’ve rounded up our top picks for medical lenders, sorting by what makes them stand out, and we’ve also included some alternatives you may want to weigh.
- Best for multiple treatments: CareCredit
- Best for fast funding: LightStream
- Best for large loan amounts: SoFi
- Best for simple repayment: Discover
- What key details should you know before getting a medical loan?
- What are some alternatives to medical loans?
- FAQs about medical loans
Best for multiple treatments: CareCredit
Why CareCredit stands out: Unlike the other financing options on this list, CareCredit isn’t a traditional loan — it’s a credit card designed exclusively for health-related expenses. If you need multiple treatments or want continued access to financing in case of emergencies, CareCredit is a revolving credit account that you can repeatedly borrow from when needed.
CareCredit offers no-interest promotional periods. If you pay off the promotional purchase amount within the designated period — typically six, 12, 18 or 24 months — no interest will be charged from the purchase date. But if you don’t pay off the full balance within the specified promotional period, you’ll face interest charges on the purchase amount from the original purchase date.
Pros
- No annual fee
- Allows joint applicants
- Wide network of participating providers
Cons
- High annual percentage rate after promotional period
Read more about CareCredit.
Best for fast funding: LightStream
Why LightStream stands out: LightStream offers personal loans that can be used for a variety of purposes, including medical bills, with loan amounts ranging from $5,000 to $100,000. Depending on when you apply and other factors, you may be able to receive your funds as soon as the same business day, which can be helpful if you’re facing a time‑sensitive expense.
Pros
- No origination, late or prepayment fees
- Long repayment terms
- Competitive rates
Cons
- No option to prequalify
- Good-to-excellent credit required for approval
Read reviews of LightStream personal loans for more information.
Best for large loan amounts: SoFi
Why SoFi stands out: SoFi offers personal loans that can be used for a number of financial needs. SoFi offers personal loans between $5,000 and $100,000 to pay for medical or dental procedures, and you won’t have to provide personal health information.
SoFi doesn’t charge late fees or prepayment penalties.
Pros
- Prequalification available
- Range of repayment terms
- Potentially fast funding
Cons
- Potential origination fee
Read reviews of SoFi personal loans for more information.
Best for simple repayment: Discover
Why Discover stands out: Discover offers personal loans that can be used for many reasons, including medical and dental costs. Loans range from $2,500 to $40,000. There are no fees, and you may get funded as soon as the next business day after acceptance.
Pros
- No fees
- Competitive rates
- Flexible loan terms (between 3 and 7 years)
Cons
- Maximum loan amount is lower than some competitors
Read reviews of Discover personal loans.
What key details should you know before getting a medical loan?
A medical loan is often another name for a personal loan that’s used to pay for medical expenses.
Personal loans can be used for a range of medical treatments, including elective procedures, fertility treatments, prescriptions, surgeries and more. A number of lenders, including certain banks, credit unions and online lenders, offer personal loans that can be used for medical treatment.
Medical loans may be unsecured personal loans, meaning they don’t require any collateral. Since lenders are trying to judge your ability to repay the loan, applications for these types of personal loans will primarily focus on factors such as your credit history and income.
You could also consider applying for a secured personal loan to help pay for medical expenses. Secured personal loans require you to put up collateral to secure the loan, but you may be able to get more-competitive rates.
The amount you may be approved to borrow and the terms of the loan will depend on a variety of factors, including your credit history.
Pros of medical loans
There are a few benefits of using a personal loan to pay for medical expenses. You may be able to get access to funds quickly — and if you’ve had a medical emergency, this may be the most important factor for you. If you’re approved, some lenders will give you the funds within a few business days.
Personal loans may also be cheaper than using a traditional credit card to pay for your medical debt. The average 24-month personal loan has an APR significantly lower than the average APR on credit cards.
Cons of medical loans
Medical loans can be an expensive financing option. While some borrowers can qualify for low-interest personal loans, applicants who don’t have strong credit histories will probably see much higher interest rates. Depending on the terms you qualify for, you could end up paying a lot in interest over a number of years.
A medical loan doesn’t decrease the total cost of what you’re paying. If you’re struggling to pay medical bills, explore options that could actually reduce the amount you’re required to pay.
What are some alternatives to medical loans?
Taking out a personal loan to pay for your medical bills isn’t always the best option. Before you borrow, look at other ways to lower your costs or spread payments out over time.
Explore financial assistance
If you’re struggling to make ends meet, you may qualify for free or reduced-cost care.
Hospitals and other healthcare providers often have financial-assistance programs to help you pay for the care that you need. The criteria for financial assistance vary, but these programs might consider your income, assets and whether the care you receive is a medical necessity.
You may also be able to work out a payment plan with the hospital if you need extra time to pay the debt.
Look for information about your hospital’s financial-assistance program on its website or through its customer service department.
Ask for discounts
Some hospitals may provide discounts if you’re uninsured, even if you don’t qualify for free or reduced-cost care.
Every hospital has its own policy, but if you’re uninsured, don’t have coverage for the medical procedure you need, or need to pay out of pocket for another reason, ask about getting a discount.
Negotiate a lower payment
If you don’t qualify for financial assistance but still need to lower your bill, consider negotiating with your doctor or hospital. You may be able to negotiate an out-of-network bill down to a more-manageable cost.
Dispute billing inaccuracies
Before you pay your medical bill, take some time to double check your invoice to make sure everything is correct.
If you find any incorrect information, call your healthcare provider or insurer to dispute the errors.
Our methodology: How we pick the best personal loans
Credit Karma’s editors evaluate the best personal loans by reviewing key features of dozens of popular lenders. Those features fall into three important categories:
- Affordability: We start by checking if a lender’s rates are competitive: are they higher than average or are they lower than many competitors? From there, we analyze if fees — particularly an origination fee — may make your loan more unaffordable. Last, we’ll check if the lender offers rate discounts for items such as automatic payments that may reduce your rate.
- Customer-friendly features: Taking out a personal loan is a big financial commitment, so we prioritize lenders that make things easier for you. For instance, do they offer a wide range of loan amounts for people with different borrowing needs? Do they offer at least several loan terms to give you more flexibility with your monthly payment? And, crucially, can they fund your loan quickly? A lender will also get bonus points for offering direct payments for debt consolidation or other customer-friendly features.
- Transparency: We believe personal loan terms should be easy to find and decipher. Prequalification, which lets you check what rate you may qualify for without a hard credit inquiry, is particularly important. We also check to see if a lender has been recently penalized by regulators.
Estimate personal loan costs
To better understand the total cost of any personal loans you’re considering, use an online calculator like Credit Karma’s simple loan calculator. A loan calculator can help you estimate your monthly payment and how much you’d pay in interest versus principal over the length of the loan.
FAQs about medical loans
Funding timelines vary by lender, but some may be able to send money within a few business days. Certain lenders even offer same- or next-business-day funding after approval in some cases.
It depends on your situation. Start by comparing the loan rates available to you to what you’d pay with a credit card. If you’re not sure what rates you’ll be offered, check for lenders that have prequalification options to get an idea of how much you’ll pay for a loan. With a loan, you’ll have a clear payoff timeline and structured monthly payments — but a credit card offers you some flexibility with revolving credit. Weighing the pros and cons of each option can help you decide what’s best for you.
Yes. Many medical loans can be used for elective procedures such as cosmetic surgery, vision correction or fertility treatments. Just make sure your lender allows personal loans to be used for the specific type of procedure you’re planning.
*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the personal loan, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.