Best Medical Loans

Whether financing a medical procedure or paying off existing debt, the best medical loans have low borrowing costs, fixed interest rates, and a range of repayment terms. Upgrade is our top pick because it offers seven-year repayment terms and loans up to $50,000; it also offers secured loans for credit-challenged borrowers and has a low minimum credit score requirement. Other top providers of medical loans include Best Egg and Upstart.

Keep reading to learn which lenders offer the best medical loans, along with benefits, drawbacks, and alternatives to consider.

Compare medical loan rates

Best medical loans

While there are several ways to pay for medical expenses, many people choose a personal loan. Unlike credit cards, personal loans offer fixed rates and years-long repayment schedules that can minimize monthly payment amounts. Here are our top picks.

What is a medical loan?

A medical loan isn’t a specific loan type, but rather any loan or financing solution used to pay for medical expenses or cover medical debts. You might apply for a medical loan through a direct lender, such as a bank or online lender, and use the funds to pay your medical provider. You might also get a medical loan through your doctor’s office, hospital, or clinic, typically from a third-party lender that pays your provider directly. Or, you might use a credit card.

In any case, you repay the lender according to the terms of your loan agreement, and you’ll typically pay interest and fees to the lender as well.

Some medical loans can only be used for specific medical expenses, while other loan types are more flexible. In this article, we focus on personal loans for patient medical expenses. The term “medical loan” may sometimes refer to a business loan for medical practices.

Types of medical loans

This list is not exhaustive but represents some of the most common financing options for paying medical debt and financing medical procedures. Note that payment plans via your hospital or care provider can be an excellent no-interest option if available. If interest isn’t charged, payment plans are technically not considered a loan.

• Personal loans: A personal loan provides a sum of cash you can use for almost any personal expense, including medical bills. You typically repay the loan in equal monthly installments over several years. Personal loans have lower APRs, on average, than credit cards — making them a good choice to refinance medical debt you’ve already put on a credit card.
• Personal lines of credit: A personal line of credit is similar to a credit card. You can borrow repeatedly up to your credit limit without reapplying and only pay interest on what you borrow. But rates on PLOCs tend to be much lower than rates on credit cards, which can make them a good option for ongoing medical bills. You can access a PLOC by writing checks, withdrawing cash, or via a debit-like card, depending on the bank. But be aware of fees, such as annual or per-transaction fees. 
• Medical-specific installment loans: Some medical providers and clinics work with third-party lenders to offer medical installment loans. These are different from payment plans offered by hospitals. Medical financing companies, like Cherry and Future Family, typically pay your provider directly, and you repay the lender in monthly payments over time. These loans offer less flexibility but sometimes feature attractive rates or promotions. 
• Credit cards: Medical credit cards like CareCredit may offer promotional financing, but you can only use them to pay for health and wellness expenses. 0% introductory APR credit cards can be used for other purchases as well, and you could avoid interest for up to two years — but approval can be difficult if you have less than good credit. Outside of promotional offers, credit cards typically have high APRs. 
• Home equity financing: A home equity loan or home equity line of credit allows you to borrow against your home equity as a lump sum or revolving credit line. These loans are secured by your home and can take weeks or months to fund. They tend to have lower interest rates than personal loans and personal lines of credit, and interest expenses may be tax-deductible no matter how you use the proceeds (beginning in 2026).

Personal loans: Pros and cons for medical expenses

There are benefits and drawbacks to using a personal loan to pay for medical expenses. 

Pros

• Fixed monthly payments: Personal loans typically have fixed interest rates, so your payments stay the same from month to month. 
• Range of repayment terms: Some lenders offer repayment terms of up to seven years or longer, allowing you to pay for an expensive medical procedure in relatively small monthly installments. 
• Fast funding: Most personal loan lenders can issue the funds to your bank account within a few business days. Other financing options could take weeks or months. 
• Flexible use of funds: Personal loans are less restrictive than medical-specific installment loans. For example, you could use some of the money to pay your medical bills and use the rest to hire help around the house or pay down other debt. 
• Lower APRs than credit cards: A 2-year personal loan has an average APR of 11.14%, according to the Federal Reserve. The average credit card APR is 21.39%
• No deferred-interest: Some 0% financing offers — with CareCredit, for example — are contingent on paying the balance off in full before the promotional period expires. If you can’t, you’ll owe all the interest that would have been charged from the loan’s inception at the standard rate (which is currently 32.99% with CareCredit). 

Cons

• Possible upfront fees: Some lenders charge an origination fee, which is typically a percentage of the loan amount and may be deducted from the funds upfront. 
• Stricter eligibility requirements: You don’t necessarily need great credit to get a personal loan, but you do need great credit to get the lowest rates. If your credit is fair or worse (a FICO score below 670), it could be hard to qualify for an APR below 25%.
• Higher APRs than some other options: Zero-interest promotions on medical loans and credit cards may cost less than a personal loan — if you can repay the full balance in the allotted timeframe. If you can’t, you could be charged deferred interest at a very high standard rate. Many regular credit cards don’t charge deferred interest, however, while medical-specific ones are more likely too. Home equity loans and HELOCs also tend to have lower rates than personal loans.
• Increased debt balance: Taking out a loan to pay for medical expenses will add to your outstanding debt, which could be risky, especially if you are having health issues that might impact your income. Explore other alternatives, like hospital financial assistance, before borrowing money. 
• Potential credit damage: With a track record of on-time payments, a personal loan could improve your credit score. But falling behind on payments could damage it. As with any financing option, make sure you can afford monthly payments for the duration of the loan’s term. 

What can medical loans be used for?

Each lender has its own restrictions, and some loan types are more flexible than others. 

For example, companies like PatientFi that offer financing through your medical provider only allow you to use the funds for medical services and procedures you receive from that provider. In fact, these companies typically pay your provider directly, so you can’t use the funds for other medical costs. 

Other medical lenders, like American Medical Loans and CareCredit, issue the funds to the patient and offer more flexibility. For example, you may be able to use the money for:

• Deductibles and copays for covered medical expenses
• Elective or cosmetic procedures, fertility treatments like IVF, or alternative therapies not covered by your health insurance
• Weight loss drugs and nutritional consultations
• Medications, medical equipment, and medical supplies
• Hearing, vision, and dental products, services, or procedures
• Cremation, burial, and funeral services
• Over-the-counter medications, supplements, and wellness products
• Veterinary expenses

Personal loans, general-use credit cards, and home equity financing offer even more flexibility. For example, you can use a personal loan for a variety of expenses, including:

• Medical bills
• Medical equipment
• Other major purchases
• Debt consolidation
• Home renovation
• Auto repairs
• Vehicle purchase
• Moving expenses
• Emergency expenses

Average personal loan rates for medical expenses

Borrowers who used the Credible marketplace to finance medical expenses or cosmetic procedures over the last 12 months received APRs in the 21% - 26% range, on average, and had good credit. Average loan amounts ranged between $9,600 and $12,600, with higher amounts borrowed for cosmetic procedures.

How medical bills impact your credit

Bills that you owe to a medical provider or hospital aren’t typically reported to the credit bureaus unless they become past due or go to a collections agency. But even then, there are consumer protection laws that may give patients some wiggle room, according to Jared Walker, founder of Dollar For, a nonprofit that helps people erase medical debt. 

“If you have a medical bill that’s unpaid that is under $500, it should not impact your credit score,” says Walker. “Previously, if you had an unpaid medical bill [of any amount], it could impact your credit after six months of no payment, but that has been extended to a year.”

Though many states had laws barring medical debt from credit reports entirely, the Consumer Financial Protection Bureau (CFPB) recently issued guidance reversing such policies and asserting that this authority belongs solely to the federal government — which may prevent states from enforcing the restrictions or passing new laws that protect consumers from credit damage due to medical debt. 

In short, it’s complicated and remains a controversial topic. Some states maintain or are attempting to maintain more protections than others in regards to medical debt — but even if you live in one of those states, those protections could change or be lost. 

How to get a medical loan

1. Determine how much you need: Before borrowing, ask for itemized medical bills. Also, ask the hospital if you’re eligible for financial assistance, and negotiate costs that seem unusually high. Lowering your medical bills will lower the amount of cash you need. Important: Ask your insurance company for their fee schedule — this indicates the maximum amount they’ll approve for any procedure. You’ll be on the hook for the rest.
2. Prequalify: If you decide to take out a personal loan, prequalify with a few lenders to get an estimate of the loan amount, APR, and repayment term you may qualify for. If your medical provider offers financing options, check if you can prequalify for comparison. 
3. Choose a loan option: Compare medical loan options based on the criteria in the next section of this guide. Choose a loan option with an affordable monthly payment and a low APR. If you’re considering a deferred interest offer, be 100% confident you can repay it in full before the promotional period ends.
4. Formally apply: Continue with the formal application for your selected loan option, uploading documents like W-2s or tax returns if necessary. When you submit your application, the lender typically performs a hard credit inquiry, which may cause a temporary dip in your credit score. 
5. Review and sign: If approved, read your loan agreement carefully. Check for origination fees, access fees, any ongoing fees, as well as deferred interest language. Make sure the APR, monthly payment, and term of the loan are what you expect. Then, e-sign your loan documents to get your cash or fund your procedure.

How to compare medical loans

When comparing medical loans, regardless of type, consider the following factors:

• Consider eligibility requirements: Check your credit score to find out which lenders you can qualify with. Financing through your medical provider may be easier to qualify for, but you should consider personal loans for fair credit to compare rates and repayment terms. 
• Compare loan flexibility: When choosing between a loan from a direct lender and financing through your provider, consider which expenses the loan will cover. For example, if you choose a loan through your fertility clinic, “there might be a lot of hidden expenses, such as administrative fees, or costs of medications, testing, and care that the loan doesn't cover,” according to Dr. Jennifer Hintzsche, Ph.D., CEO and Founder of PherDal Fertility Science, Inc.
• Review the APR and origination fee: Compare APRs and check for upfront fees, which can reduce the amount you receive. Additionally, “Understand if there is a promotional interest rate,” says Dr. Hintzsche, and check whether it’s a zero-interest or deferred interest promotion. 
• Consider the repayment term: Compare timelines for repayment. Longer repayment terms typically result in lower monthly payments, but you’ll pay more interest over the life of the loan. 
• Weigh funding speed: If you need the money fast (for example, if you need to pay for an upcoming procedure upfront), look for lenders that offer same-day or next-day funding, like SoFi. 
• Be aware of prepayment penalties: Most personal loan lenders don’t charge a prepayment penalty, but some medical-specific lenders might. “Ask if you can pay off the loan early and if any extra payments would be applied to the principal balance,” suggests Dr. Hintzsche.

Other ways to pay for medical expenses

• Check if you’re eligible for government assistance: If you don’t have sufficient health insurance coverage, check whether you meet your state’s income limits for Medicaid. You may be eligible for retroactive coverage beginning three months before your application, so your recent medical bills may be covered. Many states also offer Medicaid programs for medically needy individuals and/or working adults with disabilities who don’t meet the standard Medicaid income requirements. 
• Ask about hospital financial assistance or charity care: “Almost every hospital in the country has a program that will either reduce or waive the bill if you are within a certain income requirement,” says Walker. Many are eligible, but you need to apply. 
• Negotiate your medical bills: If you’re not eligible for charity care, ask for an itemized bill from the hospital or medical provider. “Sometimes, just the act of asking for an itemized receipt can reduce the bill, because sometimes hospitals will notice [the bill] was too much.” You can also call the hospital to negotiate the cost based on what you can afford to pay. Some companies, like Goodbill, will negotiate on your behalf and take a percentage of the savings. 
• Enroll in a payment plan: Many hospitals offer interest-free payment plans, and some states even require them. These aren’t loans and won’t impact your credit — they just give you the flexibility to pay your bill over time. They’re also often available regardless of income.
• Research medical grants and interest-free loans: Some nonprofit organizations offer grants or 0% APR loans for medical bills, but Walker says they may be hyper-local and tend to serve patients who meet certain requirements or have a specific condition. For example, several organizations provide grants or financial assistance for different types of cancer. 
• Tap your retirement savings: If your 401(k) plan allows loans, you may be able to borrow against it (and with no credit check). You must repay the loan, typically over 5 years, to avoid owing income tax plus a 10% early withdrawal penalty if you’re under 59 ½. If you leave your job, the entire amount could be due immediately. Alternatively, you could withdraw the amount directly via a hardship or rollover-eligible distribution — certain medical expenses may be exempt from the early withdrawal tax penalty, but you’ll still owe income tax on the amount withdrawn. 

Methodology

Credible evaluated 32 lenders across 1,216 data points to find the best medical loans. We leveraged partner relationships to determine which lenders approve the most medical loans, considering their average rates and loan amounts, the FICO scores of approved applicants, and more. Lenders that did not approve any medical loan over the past year were removed from consideration.

Lender star ratings were established based on the following weighted categories:

• Rates and fees: 18.75%
• Eligibility and options for bad and no credit: 17.5%
• Availability: 12.5%
• Loan amounts and terms: 10%
• Customer satisfaction: 10%
• Customer service: 10%
• Efficiency and fund delivery: 10%
• Discounts: 7.5%
• Credible proprietary data: 3.75%

Credible's team of experts gathered information from each lender's website and from our partners directly. We also considered each of our partner lenders' statistics over a 12-month period — including average funding times, average credit scores for approved applicants, and average rates. Each data point is verified by a senior editor to make sure it's accurate at the time of publication.

Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.

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