Medical Bill Loans: How to Pay Unexpected Medical Expenses
A surprise ER visit, dental work or a large deductible can arrive when you least expect it. Before you borrow, there are several ways to shrink the bill. Here's what to do, in order.
- Ask for an itemized bill and check for errors first.
- Nonprofit hospitals must offer financial assistance policies.
- A loan makes sense when interest-free payment plans aren't available.
Step 1: Ask for an itemized bill
Request a detailed, itemized statement and check every line. Billing errors, duplicate charges and services you didn't receive are common, and correcting them can reduce what you owe.
Step 2: Ask about financial assistance
Nonprofit hospitals are required to have a financial assistance policy. Depending on your income, you may qualify for a discount or have part of the bill forgiven. Ask the billing office for an application.
Step 3: Negotiate or set up a payment plan
Many providers offer interest-free payment plans or a discount for paying a lump sum. Ask directly; the first price is often not the final price.
Step 4: Consider a medical loan
If a provider won't offer a plan, or the payments are too high, a personal installment loan can pay the bill in full. For example, $2,500 at 19.99% APR over 24 months is about $127 a month, with roughly $553 in total interest.
| Option | Interest | Good to know |
|---|---|---|
| Provider payment plan | Often 0% | Ask before the bill goes to collections |
| Medical credit card | 0% promo, then high | Deferred interest can apply if not paid in time |
| Installment loan | 5.99% to 35.99% APR | Fixed payments and a set payoff date |
Medical debt and your credit
The three major credit bureaus no longer report paid medical collection debt, or unpaid medical collections under $500, and they wait a year before reporting other medical collections. That gives you time to negotiate before your credit is affected.
Using a loan for dental and other care
Installment loans can also cover dental work, vision care, fertility treatment or veterinary bills. See personal loans or emergency loans, and estimate a payment in our calculator.
Frequently asked questions
Can I get a loan to pay medical bills?
Yes. A personal or emergency loan can pay medical, dental or hospital bills, with funds as soon as the next business day.
Should I take a loan or a payment plan for medical bills?
Ask for an interest-free payment plan or financial assistance first. A loan makes sense when those aren't available or the payments are too high.
Do medical bills hurt my credit score?
Paid medical collections and unpaid ones under $500 no longer appear on credit reports, and others aren't reported for a year.