How To Finance Your Healthcare Procedure

Christie Auyeung Travel Leave a Comment

After deciding to have a medical procedure comes the hard part: figuring out how to finance it.

When it comes to paying for large medical expenses, you may have a few options. Here, we’ll break down the different methods of financing your healthcare procedure.

1) United Medical Credit: Our Primary Financing Option

We’ve partnered with United Medical Credit to help patients with financing their medical procedure abroad. With their extensive network of lenders, United Medical Credit has helped thousands of patients secure financing for almost any healthcare procedure, including cosmetic, dental, bariatric and fertility.

The Details:

  • There are no minimum requirements, though UMC considers many factors including income, credit profile, and outstanding debt.
  • After filling out their application, UMC will submit your information to the best qualified lender to give you the maximum approval amount and optimal terms. You’ll receive a response within 24 hours.
  • If your application is denied, you can always resubmit with a qualified co-signer.

 Additional Financing Options:

2) Personal Loan

Traditional lenders like banks and credit unions offer loans, as well as some lenders that specialize in medical loans. You can borrow anywhere from a few thousand to $100,000, which can be used to cover the costs of your medical procedure and other associated expenses.

The Details:

  • The benefit of a personal loan is you can pay off your invoice entirely, which helps keep your credit history in good standing.
  • Taking out a personal loan does not require any collateral, and can give you flexibility to pay off your medical expenses.
  • Your interest rate will vary based on your credit score, loan term, and loan amount.
  • You can pay the costs off over a period of time and at an amount you can afford. For example, here is a sample amortization schedule for a $5,000 loan paid over 5 years at 6% interest.

3) Personal Line of Credit

If you need money incrementally and want to benefit from lower interest rates, a personal line of credit may be a good choice. You can access the funds over time and only pay interest on the amount you’re using.

The Details:

  • Like a personal loan, a personal line of credit does not require collateral.
  • But unlike a personal loan, you don’t necessarily need to draw the full amount you are approved for immediately.
  • Payment is usually structured like a credit card, beginning right away, but rather than a set payment, you have a minimum.
  • Interest rates may be comparable or lower than those for credit cards.

 4) Home Equity Loan

With a home equity loan, you can access a portion of your home equity while still staying in your home. Once you’ve obtained your home equity loan, you can use it to pay for your medical expenses.

Details:

  • If you have a mortgage, you are building equity in your home while paying it off.
  • Your equity is the market value of your home minus the amount you still owe on your mortgage. For example, if your home’s market value is $200,000 and you owe $150,000, you have $50,000 in home equity.
  • Even though equity is your money, you can’t use it to pay expenses unless you sell your home. The home equity loan allows you to stay in your home while borrowing against the equity value.
  • Home equity loans generally offer low interest rates, tax benefits, and fixed monthly payments than personal loans.

5) Credit Card

Credit cards are usually ideal for short term balances that you pay off each month. With interest rates sometimes in the double digits, they can be one of the most expensive forms of financing. However, there is an exception that can make your credit card the cheapest option for financing your medical expenses: if you get a 0% interest credit card.

The Details:

  • If you take advantage of a 0% APR offer, you can take your time to pay off purchases and not accrue any interest.
  • You will need to plan to pay off the entire balance before the introductory 0% APR period ends though. Otherwise you could get hit with interest on your remaining balance, as well as retroactive interest on your initial balance.
  • If you know you will be able to pay off the expense amount within the 0% APR offer, using a credit card may be your best bet for financing your medical procedure.

6) Savings Secured Loan

About: Have adequate funds in your personal savings account, but don’t want to liquidate it? You can use your savings as collateral and borrow against those balances with a “savings secured loan.”

The Details:

  • You’ll be able to continue earning interest on your balances and build credit history along the way.
  • Your total expense may be lower than with a personal loan, because your asset continues to grow in value.
  • It’s is also easier to qualify for if you have low credit.

These are some options that may be available to you to help pay for your medical procedure and related expenses. There is no “best” option, since each patient’s financial situation is different. Talking with a financial professional can help you decide which method is best for you.

Christie is a UChicago grad currently living in the San Francisco Bay Area. In her free time, she enjoys tap dancing, learning to windsurf, and trying new foods.