Dental Financing in 2021: Compare Dental Loans and More
If you need to finance a major dental procedure, a dental loan or alternative source of financing could be the right solution. Be sure to compare different dental financing companies and understand the terms and conditions of the loans.
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According to the Department of Health & Human Services, 108 million Americans don’t have dental insurance. As a result, an increasing number of Americans are forgoing dental care altogether.
Paying the full cost for major dental procedures is out of reach for most Americans who end up needing some sort of financing, such as a dental loan, to afford the treatments they need. However, taking out the wrong loan can cause more harm than good, so you’ll want to know what you’re getting yourself into before accepting a dental loan offer.
On this page:
- Using Dental Loans to Finance Dental Work
- Alternative Dental Financing Options
- How to Choose a Dental Financing Plan That is Right for You?
Using Dental Loans to Finance Dental Work
Compare Dental Loans
- Fixed-rate loans starting at 5.95%* APR with AutoPay and excellent credit
- Loan amounts from $5,000 – $100,000
- Funds available as soon as the same day
- Fixed-rate loans starting at 7.99%
- Loan amounts from $1,000 – $35,000
- Funds available as soon as the next day
- Rates are typically between 8.41% and 35.99% APR1
- Funds can be received in as fast as one business day
- A minimum credit score of 600 in most states
Many lenders have begun specifically offering dental loans and medical loans. Even if you find a personal loan lender that doesn’t offer a “dental loan” specifically, most will allow you to use the funds from your loan however you’d like—including dental expenses.
The process of applying for a personal loan is fairly simple. Since personal loans are unsecured, you’ll be evaluated based on your credit history and income.
Here are some specific lenders you may want to consider for dental work financing.
LightStream
Rates (APR)
5.95% – 19.99%*
with AutoPay
Loan Amounts
$5,000 – $100,000
Credit Score
660+
LightStream provides low rates, no fees, and a program where they will beat any rate a competitor offers by 0.10 percentage points.** If you have excellent to good credit, LightStream’s medical financing loan is a great option to cover dental work expenses.
- Credit score category: Excellent, good
- Soft credit pull to check rates: Not available
- Deposit time: As soon as the same day
- Origination fee: 0%
- Late fee: None
- Discounts: 0.50% interest rate reduction for enrolling in autopay
- Repayment terms: 24 – 144 months***
Upgrade
Rates (APR)
7.99% – 35.97%
Loan Amounts
$1,000 – $35,000
Credit Score
620+
Upgrade is a great option for borrowers with bad or fair credit, as well as those that need smaller loans. Once the loan offer is accepted, borrowers could receive loan proceeds as soon as the next day. Rates can be checked without credit scores being affected as Upgrade does an initial soft pull on credit.
- Credit score category: Fair, bad
- Soft credit pull to check rates: Yes
- Deposit time: As soon as the next day
- Origination fee: 2.9% – 8%
- Late fee: $10
- Repayment terms: 36 or 60 months
Upstart
Rates (APR)
8.41% – 35.99%1
Loan Amounts
$1,000 – $50,0002
Credit Score
600+
Upstart is an online lending platform that partners with banks to provide personal loans that can be used for almost anything. Upstart’s lending model considers education, employment, and many other variables when determining eligibility.3 This model leads to 27% more approvals and 16% lower rates than traditional models.4
- Credit score category: Fair, bad
- Soft credit pull to check rates: Yes
- Deposit time: As fast as one business day
- Origination fee: 0% – 8%
- Late fee: $15 or 5% of payment
- Repayment terms: 36 or 60 months
Pros & Cons of Dental Loans
Pros
- Low Rates: Personal loans generally have much lower rates than credit cards, so you’ll save yourself a lot of money in interest.
- Flexible Repayment Terms: You may be able to secure more flexible repayment terms than you would by financing directly through your dentist.
- Wide Range of Loan Amounts: Personal loan lenders typically offer a wide range in terms of loan amounts.
- Get Funds Quickly: Most lenders typically offer fast access to cash, sometimes in as little as one business day.
- Predictable Repayment: Personal loans usually come fixed monthly payments that are easy to budget for over time.
Cons
- Some Lenders Charge High Rates: It is possible to find a personal loan with an affordable interest rate, but you’re still taking on financial risk. If you don’t have a good credit score, you may end up with a high interest rate.
- You May Have to Pay Fees: Some lenders may charge you an origination fee that could increase the total cost of your loan.
Since it may be possible for you to find alternative forms of financing, make sure to consider all your options before committing taking out a personal loan.
Alternative Dental Financing Options
If taking out a dental loan doesn’t feel like a good fit for you, here are a few alternative dental financing options you can consider:
Line of Credit
If you’re nervous about taking out a personal loan, you could also apply for a line of credit. A line of credit is similar to a personal loan, but instead of receiving the money in one lump sum, you only withdraw (and pay interest) on what you actually borrow versus the full line of credit for which you’re approved.
A personal line of credit often has lower interest rates than most credit cards and are more flexible than personal loans because they allow you to access cash as you need it, versus in one lump sum.
However, you’ll want to make sure you understand the terms and conditions associated with a line of credit. Depending on your lender, the fees can be quite high. Some lines of credit come with variable interest rates, which could increase the overall costs of repaying the loan over time.
Health Care Credit Cards
Many dental providers now offer credit cards with special payment plans. These are designed specifically for the dental industry and can be used for any procedure.
Some dental offices offer these cards at a limited 0% interest rate, so if you can pay off the loan within 12 months, you won’t be charged any interest.
However, you should only consider this option if you can repay the loan within the specified time frame. If not, you’ll be charged the full interest on the original balance.
In-House Financing
Some dental offices offer in-house financing through third-party lenders. You’ll fill out a credit application and be matched with a dental financing company.
This may be a good option for patients who have less-than-stellar credit histories. However, be prepared to pay more in interest; APRs on in-house financing can be extremely high.
Installment Payments
For ongoing procedures like braces, dentures, or bridges, many dental offices offer interest-free installment plans to their patients. You’ll pay an initial deposit fee, usually one-third or half of the total amount, and then you’ll pay the rest in monthly installments.
Since this isn’t a loan, you won’t have to fill out an application or undergo a credit check. You can contact your dentist directly to see if they offer monthly installment plans.
How to Choose a Dental Financing Plan That is Right for You?
Dental procedures can be quite expensive, even if you already have dental insurance — a root canal can cost more than $1,000 in some cases! Fortunately, there are multiple dental financing options available that can help you afford the cost of much-needed care.
If you have excellent credit and can qualify for a low interest rate, a dental loan might be the right choice for you. You can still qualify for financing if your credit score is on the lower side, albeit with a higher interest rate. Check with your dentist to see if they offer installment plans or other forms of financing.
Anytime you take out a loan, you want to get the best personal loan rates and terms possible. It’s important to consider all your options and make sure you find a payment plan you can afford.
*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice.
**LightStream will offer a rate .10 percentage points lower than the rate offered on any competing lender’s unsecured loan provided that you were approved for that lower rate (with the same loan terms offered by LightStream) no later than 2 p.m. Eastern time two business days prior to loan funding. The Rate Beat Program excludes secured or collateralized loan offers from any lender, and the competitive offer must be available to any customer with a similar credit profile. Terms are subject to change at any time.
If you believe you have been approved by another lender for a lower qualifying rate, contact LightStream customer service. We will work with you to determine your Rate Beat eligibility and obtain the necessary documentation.
***Payment example: Monthly payments for a $10,000 loan at 5.95% APR with a term of three years would result in 36 monthly payments of $303.99.
1The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646 including a $626 origination fee. APR is calculated based on 3-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.
2Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Loans are not available in West Virginia or Iowa. The minimum loan amount in MA is $7,000. The minimum loan amount in Ohio is $6,000. The minimum loan amount in NM is $5100. The minimum loan amount in GA is $3,100.
3Although educational information is collected as part of Upstart’s rate check process, neither Upstart nor its bank partners have a minimum educational attainment requirement in order to be eligible for a loan.
4Approval numbers compare the 2020 loan approval rate by the Upstart model and a hypothetical traditional credit decision model. The APR calculation compares the two models based on the average APR offered to borrowers up to the same approval rate. The hypothetical traditional model used in Upstart’s analyses was developed in connection with the CFPB No Action Letter access-to-credit testing program, is trained on Upstart platform data, uses logistic regression and considers traditional application and credit file variables.
