Best Medical Loans

High health care costs in the U.S. led to a quarter of Americans delaying care in 2023. If you’re one of them, a loan may be the answer.

You can use a personal loan or a medical loan specifically for health-related expenses. Whether your insurance doesn’t go far enough or you want an elective procedure, a medical expense loan can help make up the difference.

We’ve researched the best medical loans for all kinds of borrowers, including those with excellent, good, fair, and little to no credit. 

Table of Contents

1. Best medical loans
2. Pros and cons of medical loans
3. Should you take out a medical loan?
4. What can I use a medical loan for?
5. How to choose a medical loan
6. How to apply for a medical loan
7. Alternatives to a medical loan
8. FAQ

Best medical loans

You can use personal loans for almost anything, including medical procedures. When evaluating loans, focus on lenders that work with borrowers in your credit score range. Your bank or credit card company may offer free access to your score, or you can sign up for a free credit score service that gives you an estimate. 

The most common credit scoring model lenders use is FICO, which ranges from 300 to 850. Here are the credit score ranges and how they’re categorized so you know where you fall. 

Credit category	Score range
Exceptional	800 – 850
Very good	740 – 749
Good	670 – 739
Fair	580 – 669
Poor	300 – 579

Once you have an idea where your credit stands, start exploring lenders. These are our top recommendations, sorted by the minimum credit score ranges each lender considers:

Lender	Best for
SoFi	Best for good credit
Upgrade	Best for fair credit
Upstart	Best for thin (little to no) credit

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Best for good credit: SoFi

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LendEDU rating: 5 out of 5

• Loan amounts from $5,000 to $100,000
• Same-day funding available

SoFi offers personal loans you can use for medical expenses or any other purchase you need to finance. In addition to good credit, qualified borrowers need to have higher income levels and lower debt-to-income ratios.

SoFi doesn’t charge origination fees for the most well-qualified borrowers—and no prepayment fees or late fees for any borrower. SoFi also offers autopay and direct deposit discounts, letting you reduce your APR and save on interest.

If SoFi sounds like a good fit but you’re unsure if you meet eligibility requirements, you can always apply with a co-applicant. Keep in mind that SoFi only allows co-applicants who live at your same address, and the lender doesn’t offer co-applicant release.

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Best for fair credit: Upgrade

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LendEDU rating: 4.9 out of 5

• Accepts joint applications
• Borrow up to $50,000
• Rate discounts when you enroll in autopay or use a vehicle as collateral

You don’t need pristine credit to qualify for a personal medical loan with Upgrade. The minimum credit score is 560, so you may be eligible with negative entries on your credit report, such as late payments or medical bills in collections.

One downside is that Upgrade assesses an origination fee, which it deducts from your loan funds. You’ll receive less cash when your loan is disbursed, but you’ll pay interest on the total amount.

Still, if you need your loan quickly, Upgrade is a safe bet. Upgrade funds its personal loans as soon as one day after approval. The lender offers a wide range of repayment terms, too, giving borrowers up to 84 months to pay back their loans.

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Best for thin (little to no) credit: Upstart

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LendEDU rating: 4.8 out of 5

• Quick funding times
• Approval model considers education and employment in addition to financial factors
• No fees for paying off loan early

Upstart provides medical and other personal loans to thin- and bad-credit borrowers. Loan amounts start at $1,000 and go up to $50,000. If you have a smaller amount of medical expenses to cover, you can apply with Upstart.

Upstart’s lending criteria are more lenient than you’ll find with other lenders. Your credit score is only a piece of the approval puzzle, with your education and employment playing a role, as well.

Upstart offers fewer customization options, however. You can choose to repay your loan over 36 months or 60 months. Upstart deducts its origination fee from your loan proceeds, too, reducing the cash you can use for your procedure. 

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Pros and cons of medical loans

Pros

• Quick funding times for time-sensitive medical issues

• Potentially lower interest rates compared to credit cards

• More significant loan amounts to cover expensive medical bills

• Often no fees for paying off loan early. (Confirm with lender.)

Cons

• Origination fees could lower loan amount

• May be difficult to qualify with bad credit and could result in high interest rates

• Increases debt load throughout the repayment period

• Quoted interest rate can increase with lower credit score.

Should you take out a medical loan?

Taking out medical loans for surgery or other health care needs is an important decision. Use a personal loan calculator to get a sense of your monthly payments with loans of different sizes.

Also, compare the size of the financial burden to how necessary the medical work is; for instance, an elective procedure such as plastic surgery may not be worth it if the loan payments would stretch your finances.

On the other hand, using a loan to pay off high-interest credit cards or other debt caused by medical bills could save you money if you qualify for a lower rate. 

Speak with your tax accountant about whether your medical expenses are deductible on your tax return. Even if you finance them, major medical expenses may lower your annual tax bill.

What can I use a medical loan for?

People take out medical procedure loans for many reasons. Read our resources on funding each procedure by following the links below. 

Medical procedure

Tummy tuck

Plastic surgery or cosmetic surgery

Dental work

Addiction recovery treatment

In-vitro fertilization (IVF)

Hip replacement surgery

Breast augmentation

How to choose a medical loan

Ready to pick the right medical loan for your needs? Start by focusing on lenders that offer prequalification. This lets you get personalized quotes for loan amounts, rates, and other terms without submitting a complete application. 

Some lenders provide this information by performing a soft credit check, which doesn’t affect your credit score. Others may do a hard credit check, which pulls a full copy of your credit report. It can lower your credit score by a few points for a year and will be on your report for two years.

Here’s how our top lenders compare with credit checks during the prequalification stage:

Lender	Soft credit check for prequalification?
SoFi	✔️
Upgrade	✔️
Upstart	✔️

Once you have multiple offers to compare, look at the terms of conditions for each, including:

• Interest rate
• Origination or other fees
• Loan term
• Monthly payment amount
• Loan prepayment penalty, if applicable

How to apply for a medical loan

These are the steps to expect when taking out a medical loan.

1. Figure out how much you’d like to borrow for your medical needs. Understanding your target loan amount prevents you from borrowing more than you need.
2. See whether you prequalify. Pick several lenders, especially if they only perform a soft credit check.
3. Compare offers. Look at the terms of every offer. Pick the best one based on cost, monthly payment, and overall user experience.
4. Choose a lender and apply. Pick the best offer, and submit a complete application. You’ll likely need to submit financial documentation, including bank statements, pay stubs, and tax returns.
5. Get approved and funded. Once you submit your application and get approved, your loan funds will be on their way. Every lender has its own delivery method, often deposited to your bank account. Any origination fees are deducted before you get the money.

Alternatives to a medical loan

Not sure whether a personal loan is the best choice to cover your medical expenses? Alternatives to consider include:

• Savings: If you have enough cash, consider using your savings to pay for some or all of your medical expenses. You can always take out a smaller loan to keep your monthly payments low.
• Credit card: A low-interest credit card is another option to cover medical costs. Some even come with a 0% introductory APR for a certain period.
• Home equity loan or line of credit: For more significant medical expenses, a home equity loan or line of credit lets you borrow money at a low rate. The downside is that your house is used as collateral for the loan. 

FAQ

What can I use a medical loan for?

Personal loans can be used for any type of medical expense, including deductibles, dental work, elective procedures, fertility treatment, addiction recovery, and more. You can even use the money to cover living expenses while you recover.

What are the best bad-credit medical loans?

Upgrade and Upstart offer personal loans for borrowers with lower credit scores. Compare multiple options, including interest rates and origination fees, to keep the cost of borrowing as low as possible.

Can I use personal loans to pay medical bills?

As long as you meet the lender’s approval standards, you can use personal loan funds for anything you’d like, including medical bills.

Can I use a personal loan for any medical expenses?

Most lenders do not place limitations on how personal loan funds can be used. You’ll get the money as a lump sum in your bank account and can then spend it as you see fit. 

Can I use personal loans for medical procedures?

Using a personal loan for medical procedures is OK, as long as your loan terms don’t state the funds must only be used for a specific nonmedical purpose.

Does the type of procedure or surgery affect my personal loan?

Provided your loan terms don’t prohibit using funds for medical expenses, you can use your personal loan for any type of procedure, from dental work to LASIK to cosmetic surgery.

Recap: Best medical personal loans

Lender	Best for
SoFi	Best for good credit
Upgrade	Best for fair credit
Upstart	Best for thin (little to no) credit