Medical emergencies can happen and you will find yourself needing a large amount of funds to cover the medical bills. If you are struggling to use your savings to settle the medical bill, the best option is to apply for an online signature loan. Personal loans can be used to cover any personal expenses including medical expenses. Most online lender offers loans around $30,000 – $35,000 but there are a few of them that offer up to $100,000.
The interest rate on online personal loan is typically cheaper than using your credit card or seeking a short term and personal loan to cover the medical bills. It is also more affordable compared to transferring your medical debt to a balance transfer card. Balance transfer card only have a zero percent interest period for 12 – 21 months. Normally, the medical bill is a big amount so the zero percent interest period probably does not give you enough time to repay your debt. If you can’t pay back within the zero percent interest period, you will have to pay a higher interest rate.
Online signature loans usually have fixed interest rate. Fixed interest rate is different than variable interest rate where it does not fluctuate during the loan period. This means you will pay a fixed amount during the entire loan term which allows you to plan the repayment according to your budget.
You can apply the loan relatively fast since you don’t have to travel to the bank and queue up. It takes just a few minutes to enter your information in the online loan request form. Many lenders take about a few minutes to give you a reply about the loan decision. If you get approved, you will receive the funds in a few days.
Online signature loan is ideal for patients whom medical facility does not offer any repayment plan. It is also suitable for those who cannot afford the interest fee of the loan repayment plan offered by the medical facility. The repayment plan of an online personal loan can be spread out over a period of several years and it is typically longer compared to the hospital repayment plan.
Your credit score is the main factor will be used to determine the interest rate because it is unsecured. Other factors that can influence your interest rate include income level, debt to income ratio and stable job. If you have good/excellent credit score, you can expect to get approved for an interest rate lower than 10%.
Prior to getting a personal loan, make sure you have already reviewed your medical bill. Most of the time, the medical bill will have mistakes such as duplicate charges or charges for services that the patient did not receive. You should also try to negotiate the medical bill with the medical provider so that you can borrow a lesser amount.