Unexpected medical bills can throw a wrench into your budget. That’s where medical emergency loans come in.
With medical emergency loans, you can receive funds as soon as the same day to cover the cost of sudden procedures, medications, and other medical expenses.
These loans are personal loans by another name and are lent by banks, credit unions, and other lenders. Your credit and income (or those of your cosigner) can help you qualify for financing and, ideally, at competitive interest rates that lower the total cost of repayment.
Here’s what you need to know about medical emergency loans.
- Where to get a medical emergency loan
- How do these medical loans work?
- How to qualify for personal loans
- How to compare lenders
Where to get a medical emergency loan
You can find medical emergency loans at banks, credit unions, and online lenders. Here’s an overview of seven Credible’s partner lenders that offer medical loans.
1. Avant
Avant is an online lender that strives to improve the borrowing experience for the middle class. The lender has provided funding to more than 2 million borrowers. Avant’s personal loans are accessible to borrowers with lower credit scores and, if approved, funds can be deposited into your account as quickly as the next business day.
Avant might be a solid choice if you need to cover a small expense, with loan amounts that start at $2,000 in most states. You can also manage your loan using Avant’s mobile app. However, Avant charges fees, and it may not be available in your state.
- Interest rates: 9.95% to 35.99%; fixed
- Loan amounts: $2,000 to $35,000; minimum of $6,400 in Massachusetts
- Loan terms: 1 to 5 years
- Minimum credit score: 580
- Loan types: Emergency, debt consolidation, medical, home improvement; secured and unsecured
- Funding time: As soon as the next business day after approval
- Eligibility: Must be at least 18 years old (19 if you live in Alabama); must have a personal bank or credit union account; must be able to provide proof of income and identity; must not live in HI, MA, ME, NY, VT, or WV; must have a monthly income of at least $1,200
- Fees: Administration fee of up to 4.75%; late fee of $25; returned payment fee of $15
- Cosigner acceptance: No
- BBB rating: A
Pros:
- Fast funding
- Wide range of repayment terms
- No prepayment penalties
- Convenient mobile app
Cons:
- Charges an administration fee
- Low maximum loan amount
- Not available in all states
- Doesn’t accept cosigners
- Doesn’t disclose many eligibility requirements on website
- Doesn’t offer discounts
2. Best Egg
Best Egg offers unsecured and secured personal loans that are accessible to borrowers with fair credit. If you qualify, you can receive funds as soon as the next business day. The lender might be a fit if you need to consolidate debt — if you allow Best Egg to send funds directly to your creditors, you may qualify for a lower rate.
However, loans for Best Egg aren’t available in all states. The lender also charges an origination fee that can be expensive, and Best Egg has limited options for repayment terms.
- Interest rates: 8.99% to 35.99%; fixed
- Loan amounts: $2,000 to $35,000 (up to $50,000 depending on your state, and in special circumstances); $6,500 minimum in MA; $5,000 minimum in OH; $3,000 minimum in GA
- Loan terms: 3 to 5 years
- Minimum credit score: 640
- Loan types: Debt consolidation, moving, adoption, credit card refinancing, home improvement, vacation; secured and unsecured
- Funding time: As soon as the next business day
- Eligibility: Must be a U.S. citizen or permanent resident; must be at least 18 (or the legal age to accept a loan in your state); must have verifiable checking account with a routing number; must have a valid email; must have physical address; must not live in DC, IA, VT, or WV
- Fees: Origination fee of 0.99% to 8.99% of the loan amount; returned payment fee of $15; no prepayment penalties
- Cosigner acceptance: No
- BBB rating: A+
Pros:
- Fast funding
- Wide range of loan amounts
- No prepayment penalties
- Offers direct pay discount
Cons:
- High minimum loan amount in some states
- Few options for repayment terms
- Charges fees
- Not available in all states
- Doesn’t accept cosigners
3. LendingPoint
LendingPoint has provided over $8 billion in loans since 2015. The lender considers other factors beyond your credit score when determining whether you qualify. LendingPoint’s mobile app also has free tools like credit score monitoring and budget tracking.
However, LendingPoint may take up to three business days to approve your application, and it doesn’t offer loans to borrowers in Nevada and West Virginia.
- Interest rates: 7.99% to 35.99%; fixed
- Loan amounts: $2,000 to $36,500
- Loan terms: 2 to 6 years
- Minimum credit score: No minimum credit score
- Loan types: Debt consolidation, medical expenses, vehicle repairs, home improvements, weddings, and more
- Funding time: As soon as 1 business day after loan approval
- Eligibility: Be at least 18 years of age; provide a U.S. government-issued photo ID; have a Social Security number; have a minimum annual income of $35,000; have a verifiable bank account; not available in NV or WV
- Fees: Origination fee of 0% to 8% in some states; no prepayment penalties
- Cosigner acceptance: No
- BBB rating: A
Pros:
- No minimum credit score requirement
- Fast loan funding
- No prepayment penalties
Cons:
- Not available in NV, WV
- Charges an origination fee
- Approval can take 3 days
4. LightStream
LightStream is an online platform that offers loans to individuals with good-to-excellent credit profiles. Unlike some lenders, LightStream offers benefits like an autopay discount. When you sign up for automatic payments prior to loan funding, you can qualify for a 0.50 percentage point discount on your interest rates.
In addition, LightStream has a convenient mobile app that makes it easy to check your loan balance and make payments. However, the lender has a high minimum loan amount, so if you only need a small loan, you’ll need to look elsewhere.
- Interest rates: 7.49% to 24.49% (with autopay); fixed
- Loan amounts: $5,000 to $100,000
- Loan terms: 2 to 12 years
- Minimum credit score: Does not disclose
- Loan types: Home improvement, debt consolidation, medical expenses, weddings, auto loans, and more; unsecured
- Funding time: As soon as the same day
- Eligibility: Must have good credit; must have sufficient income to support your existing debts and loan amount; must have a valid Visa or Mastercard
- Fees: None
- Cosigner acceptance: No; co-borrowers accepted
- BBB rating: A+
Pros:
- Fast funding
- High maximum loan amount
- Long repayment terms
- No fees
Cons:
- Only approves borrowers with good-to-excellent credit
- High minimum loan amount
- Doesn’t disclose many eligibility requirements
- Must have a Visa or Mastercard
5. Prosper
Prosper is a peer-to-peer lending platform that matches investors to borrowers. If you need money fast, Prosper can usually fund your loan within one business day after verification and final approval of your loan.
While you need a credit score of at least 600 to qualify, you can apply with a co-applicant to increase your chances of approval. On the downside, the lender charges an origination fee, and you may run into other fees for making late payments, paying with a check, and more.
- Interest rates: 6.99% to 35.99%; fixed
- Loan amounts: $2,000 to $50,000
- Loan terms: 2 to 5 years
- Minimum credit score: 600
- Loan types: Debt consolidation, credit card refinancing, emergency, home improvement, pool, dental, special occasions, medical, vacation, vehicle purchase; unsecured
- Funding time: As soon as 1 business day after final approval
- Eligibility: Must be at least 18 years of age; must be a U.S. resident in a state where Prosper marketplace loans are available; must have a U.S. bank account; must have a Social Security number; must not live in IA or WV
- Fees: Origination fee from 1% to 5%; late fee of $15 or 5% of unpaid installment amount, whichever is greater; failed payment fee of $15; check payment fee of $5 or 5% of your payment, whichever is less; insufficient funds fee of $15; no prepayment penalties
- Cosigner acceptance: No; co-borrowers accepted
- BBB rating: A+
Pros:
- Fast funding
- No prepayment penalties
- Wide range of loan amounts
- Accepts co-borrowers
Cons:
- Charges origination fee
- Not available in all states
- Doesn’t offer discounts
6. SoFi
SoFi offers personal loans up to $100,000, making it a worthwhile option for borrowers who need large loan amounts for home improvement projects, wedding costs, or other needs. SoFi can also fund your loan the same day you’re approved.
SoFi’s website states that you can check your rate online in just 60 seconds, with no impact on your credit score. And you don’t have to worry about how you’ll repay your loan if you’re laid off; if you’re approved for SoFi’s Unemployment Protection, the lender will modify your payments for up to 12 months and will help you find a new job, too.
- Interest rates: 8.99% to 25.81%; fixed
- Loan amounts: $5,000 to $100,000
- Loan terms: 2 to 7 years
- Minimum credit score: Does not disclose
- Loan types: Credit card consolidation, home improvement, wedding, relocation, vacation, medical expenses; unsecured
- Funding time: As soon as the same day you sign your loan agreement
- Eligibility: Must be at least 18 years old (or age of majority in your state); must be a U.S. citizen, eligible permanent resident, or non-permanent resident alien; must reside in a state where SoFi is authorized to lend; must be employed, have sufficient income from other sources, or have an offer of employment to start within the next 90 days
- Fees: None
- Cosigner acceptance: No; co-borrowers accepted
- BBB rating: A+ (not BBB-accredited)
Pros:
- Large loan amounts
- Fast funding
- No fees
Cons:
- High minimum loan amount
- Doesn’t disclose minimum credit score
- Doesn’t accept cosigners
7. Upstart
At Upstart, borrowers with poor credit or no credit at all can still qualify for a personal loan to meet their needs. Upstart’s lending model uses factors beyond your credit score — like your education and employment history — when determining loan approval.
With loan amounts as low as $1,000 and as high as $50,000, Upstart’s personal loans can help you consolidate your debt, cover unexpected medical bills, or finance home upgrades and repairs.
According to Upstart’s website, it only takes five minutes to check your rate. However, you won’t be able to apply with a cosigner, and your loan may come with an origination fee of up to 12% of the loan amount.
- Interest rates: 4.6% to 35.99%; fixed
- Loan amounts: $1,000 to $50,000
- Loan terms: 3 years or 5 years
- Minimum credit score: 300 (or no credit score at all)
- Loan types: Debt consolidation, medical expenses, home improvement, moving costs, education expenses, vacations, weddings; unsecured
- Funding time: As soon as 1 business day after acceptance
- Eligibility: Must be at least 18 years old; must be a U.S. citizen currently living in the U.S. (except active-duty military personnel); must have a valid email address; must have a verifiable name, date of birth, and Social Security number; must have a full-time job, a full-time job offer starting in 6 months (except if accepted to a partner bootcamp and seeking employment after graduation), a regular part-time job, or another source of regular income; must have a valid bank account at a U.S. financial institution with a routing transit number; must meet minimum credit requirements
- Fees: Origination fee of 0% to 12%; late fee of 5% of the unpaid amount or $15, whichever is greater; ACH return or check refund fee of $15; paper copies fee of $10; no prepayment fee
- Cosigner acceptance: No
- BBB rating: A+
Pros:
- Available to borrowers with bad credit or no credit
- Wide range of loan amounts
- Fast funding
Cons:
- Limited repayment term options
- Charges origination and other fees
- Doesn’t accept cosigners
How do medical emergency loans work?
An emergency loan is typically unsecured, meaning you can take one out without risking collateral, like your house or car.
You’ll likely need good-to-excellent credit to get approved for this type of loan. But if your credit is less-than-perfect, don’t worry. Some lenders are willing to lend to borrowers with poor or fair credit. However, if your credit isn’t in the best shape, you may have to settle for a higher interest rate.
| Tip: You can improve your chances of approval and a competitive APR by applying with a creditworthy co-applicant. Both a cosigner and a co-borrower would assume legal responsibility for repayment, but only a co-borrower would have equal access to the borrowed funds. |
In most cases, you can apply for a medical loan online from the comfort of your own home. Upon approval, you’ll receive the funds in a lump sum. Then, you’ll repay what you borrow plus interest and fees over a set term, ranging from one to five years or even longer.
Since a medical emergency loan (or dental financing) is flexible, you can use it to pay for just about any unexpected medical bill. It can help you cover high deductibles and copays, vision issues, diagnostic tests, surgery, medications, dental work, fertility treatments, and more.
How to qualify for a medical emergency loan
Each lender has its own requirements for medical emergency loans. But the most common eligibility criteria you’ll likely have to meet include:
- Good credit: Most lenders look for good-to-excellent credit. If you find a lender that accepts borrowers with lower credit scores, you’ll likely receive a higher interest rate, which will increase your overall cost of borrowing. As we mention below, piggybacking onto the stronger credit of a cosigner (or co-borrower) could help you get approved.
- Proof of income: Some lenders have a minimum income requirement. Even those that don’t will ask you to show proof of earnings through pay stubs or tax returns so they know you can realistically afford to repay what you borrow.
- Low debt-to-income ratio: Your debt-to-income (DTI) ratio compares your monthly debt payments to your monthly income. Lenders typically prefer a DTI of no higher than 40%.
Medical loans for poor credit
A lower credit score usually leads to a higher interest rate on a medical emergency loan. But the following strategies can improve your chances of approval if your credit is less robust.
- Apply with a cosigner: A cosigner with strong credit can boost your application. The cosigner can be a trusted family member or friend who agrees to repay your loan if you fail to make your payments.
- Get a credit builder loan: With this type of loan, you’ll make monthly payments, which will be reported to the major credit bureaus. As long as you pay on time, you can build a positive payment history and improve your credit score.
How to compare medical emergency loan lenders
As you explore personal loans for medical emergencies, it’s a good idea to shop around and compare lenders across these categories. This way, you can choose the best personal loan for your situation.
- Loan amounts: Most medical loans range from $600 to $100,000. The lender and your credit history will determine the amount you can borrow.
- Interest rates: The interest rate will impact the total cost of your loan. In general, the lower your rate, the less you’ll spend on your emergency medical expenses.
- Repayment terms: Lenders usually give you one to seven years to repay a medical emergency loan. Keep in mind that a shorter term can save you more money on interest.
- Fees: Some lenders charge fees in addition to interest, which can make your loan more expensive. These might be origination fees, late fees, and annual fees.
- Time to fund: Funding times vary by lender. The money could be deposited the same day you get approved (see same-day loans) or you might have to wait a few business days, depending on the lender.
In a perfect world, you wouldn’t need a medical emergency loan. But life happens, and a personal loan for medical emergencies may be just what you need to avoid going into serious debt or draining your emergency fund.