You can apply for a medical loan to spread the cost of private medical treatment. The majority of healthcare in the UK is provided by the NHS, so this type of finance isn’t as common as it is in countries such as the US. However, you might need to apply for a loan to cover cosmetic surgery, private dental work, and other specific medical treatments that aren’t covered by the NHS, and we explain how you can meet these expenses below.
Are Loans Available For Medical Purposes?
Generally speaking, you can apply for a loan to cover medical bills. However, every provider will have its own reasons for accepting or rejecting applications, so you will need to consider the terms and conditions of a lender beforehand. “Medical” can include things like dentistry, fertility treatment, or cosmetic treatment, for instance. You should always check if you can get your treatment on the NHS before splashing out on medical bills, but if you need to go private, here are some ways that you could fund the procedure:
An Unsecured Personal Loan
An unsecured personal loan is arguably the simplest type of funding available. You can apply to borrow money in a lump sum, and you are then required to pay it back in instalments. At the end of the repayment period, you’re all done, and everything is paid off. Lots of lenders consider surgery that is not covered by the NHS as a viable reason to approve a loan application, but it’s important to remember that all lenders have different criteria. You can apply for an unsecured personal loan to cover medical bills from Koyo Loans, a third-party loan provider that uses Online Banking.
Another option to pay your medical bills is a credit card, although not every medical company accepts them. While you might be eligible for an interest-free period on your credit card, some companies charge high-interest rates after this initial period, so bear this in mind before putting your treatment on a credit card. Things can get expensive quickly if you’re not careful, so you should only use a credit card if you’re confident of paying it back within the stipulated timeframe.
In many instances, the medical or dental provider will offer you finance to pay for your treatment. In many industries, this is referred to as “in-store” finance, and it’s just like buying a piece of furniture on store credit. Generally, the provider will require a deposit up-front, and you will then have a specific period of time to pay the money off. This is often a viable and affordable way to pay for treatment, but it’s a good idea to shop around before committing to one provider over another, as you want to get the best possible deal.
What About Health Insurance?
If you are about to have treatment that isn’t covered by the NHS, it might be covered by your health insurance. However, it’s worth noting that most health insurance policies exclude treatment for pre-existing conditions, so surgery that you’re already planning won’t be covered by the policy. That being said, if you already have health insurance coverage, reach out and speak to your provider to find out more about the treatment that you require and whether it’s covered by your policy.
Are There Medical Loans For People With Bad Credit?
While it’s possible to access a loan with bad credit, you will find that they’re much more difficult to come by. Most lenders consider your credit score as the main determinant of your creditworthiness, while others use Open Banking to get a much clearer picture of your current financial circumstances.
What’s more, there’s not a minimum credit score required for a medical loan, but you’re more likely to be approved if you have a history of making your repayments on time. As mentioned, lenders that use Open Banking are more likely to approve your application if you have a bad credit history, as they use secure technology to safely view your current financial situation. They can make their decisions based on real-world data, as opposed to what a third party says about you.
If you’re about to undergo some medical treatment in the UK that is not covered by the NHS, you can finance it in one of the ways introduced above. Make sure you check a lender’s criteria and eligibility requirements before submitting an application to ensure that medical expenses are an acceptable use of the credit.
Want to know more about affording medical expenses? Find out more at the Koyo Loans site with the Home Improvement Loan Calculator.