Pet Loans: How to Finance Vet Bills

Credible takeaways

Pet loans are an affordable way to budget for unexpected pet-related expenses, such as a large vet bill or emergency surgery.
You can use a pet loan to pay off vet expenses you already put on a credit card.
A pet loan could be a personal loan or a home equity loan.
Consider pet insurance to limit large pet bills going forward.

Pets enrich our lives, but they can sometimes drain our bank accounts. If your pet is in need of emergency vet care, the cost could run from a few hundred to several thousand dollars, depending on the nature and severity of the issue. If you don't have pet insurance to help cover costs, or if you need help covering your share of those costs, a pet loan can help.

And you can get an idea if you qualify for a pet loan within minutes — thereby saving yourself heartbreaking hours wondering how you can get your loved one the care they need.

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How do pet loans work?

A pet loan is often a personal loan you take out to cover pet-related expenses, such as a large vet bill or a large credit card bill (as a result of a large vet bill). Most personal loans are unsecured, meaning that you don't need to use an asset, like a car or your home, to secure the loan. But pet loans can also be funded with the equity in your home. You could get a lower rate relative to an unsecured personal loan, but will need an alternate form of financing in the interim, since home equity loans can take a month or more to close.

Learn More: How Do Personal Loans Work?

Personal loans for pets

Because personal loan approval is based on your credit and income (plus the credit and income of a co-borrower or cosigner, if you have one), the cost of the loan depends on how much of a risk the lender believes you to be. If you have a high credit score, a healthy debt-to-income ratio, and a long history of on-time payments, you’re more likely to qualify for low interest rates.

According to the Federal Reserve, the average rate for a 24-month personal loan was 12.49% in February 2024, compared to 21.59% for a credit card. Even if you need a bad credit loan, you might still qualify for a personal loan interest rate that's lower than the rate on your credit card. And since personal loans are installment loans, you’ll have a fixed (unchanging) payment for the life of the loan, which could be up to seven years if needed.

Tip

If you’ve already put a large pet expense on a high-interest credit card, consider using a debt consolidation loan to refinance it at a lower interest rate.

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Home equity loans for pets

Home equity loans and home equity lines of credit (HELOCs) can be an effective way to finance and budget for pet expenses, especially large or ongoing ones like a gastrointestinal surgery or cancer treatment. But since they can take more than a month to close, you should have another way to finance pet care in the meantime. Home equity-based financing options may have very low rates, however, since the loan is secured by your home. And since repayment terms can last up to 30 years, you might find it easy to budget for even very large pet expenses.

In addition to owning a home with equity, you should have more than 20% of your home's equity available. Lenders prefer that the sum of all loans against your home do not total more than 80% of your equity. For example, if your home is worth $400,000, and you owe $250,000 on your mortgage, you may be able to borrow up to $70,000.

Learn More: HELOC vs Personal Loan

When should you take out a pet loan?

Pet loans are usually taken out for major unexpected expenses, not the day-to-day costs of owning a pet, like food. Here are some of the most common reasons for taking out a pet loan:

New pet costs: Getting a new pet can be costly. You may consider taking out a loan to cover vaccines, microchips, and a spay/neuter procedure.
Surgery: If your pet needs emergency surgery or a major operation, a personal loan can be a lifesaver, literally.
Chronic illness: The cost of ongoing care for a chronic illness can really add up, and might be more than you can afford within a short period of time.
A service animal: Service animals can be expensive — the National Service Animal Registry says a service dog can cost as much as $50,000. Budgeting that cost over several years can make it easier to afford the service animal you need.

Tip

A great way to avoid needing a large pet loan is to get pet insurance. The cost varies based on the age and type of pet you have, but could be less than $40 per month and can cover tens of thousands of dollars in costs if you need it.

Pros and cons of pet loans

Here are the benefits and drawbacks of taking out a pet loan.

Pros

Access to care: Obviously the biggest benefit of taking out a pet loan is being able to afford the care your pet needs, if it’s for a medical treatment.
Quality of life: If your pet loan is for a service animal, the improvements to your daily life may be worth borrowing money.
Stable repayment terms: Personal loans come with fixed rates and a set repayment plan, so there won’t be any surprises.
Can budget for large expenses: Since pet loans like home equity loans and personal loans can have multi-year (even decades-long) repayment periods, even very large pet bills can be affordable.
May be good for your credit score: Especially if you don’t have a lot of existing debt, taking out a personal loan may actually be good for your credit score. Many credit score models look for a good “mix” of credit, so if your only existing debt is a credit card, adding an installment loan might help boost your score.

Cons

Cost of borrowing: The negative to any debt is the cost of borrowing, which is why it's crucial to compare rates between loans and loan types before applying.
Can be difficult to qualify with bad credit: If you have bad credit, it can be harder to qualify for a personal loan with a good interest rate. However, there are lenders who lend to bad-credit borrowers. You’ll still be subject to a higher interest rate than someone with good credit, though.

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How to apply for a pet loan

If you’ve decided a pet loan is right for you, here’s how to go about getting one.

Prequalify with multiple lenders or get preapproved: Most banks, credit unions, and online lenders have easy online processes that allow you to prequalify and see what annual percentage rates (APRs), amounts, and terms you may be eligible for. Prequalifying won’t impact your credit score, but is also not an offer of credit and your final rate may differ. For a home equity-based loan or HELOC, the preapproval process may be slightly more onerous, but well worth it.
Compare terms: Take a look at your offers. Compare the total cost of the loan (the APR, which includes the interest rate and any upfront fees), the repayment terms (how long you’ll be repaying it), and the monthly cost (make sure it fits in your budget). Also research the lender and make sure it has a good reputation.
Finish your application: Once you’ve found the best option, complete your application. You’ll likely need your government ID, bank account information, and proof of income. Some lenders may ask for additional documentation. Once you formally apply, the lender will perform a hard credit pull, which will impact your credit score temporarily. Carefully read the paperwork before you sign on the dotted line.
Accommodate required appraisals: If your home needs to be appraised (for a home equity loan or HELOC) or if you're seeking a secured personal loan, you'll need to make sure the lender gets the appraisal they need to finalize your loan.
Get your money: Once you’ve signed the loan agreement and the loan is disbursed (funds can arrive as soon as the same or next business day), use the money for your pet expenses. Then get ready to start making your payments. Consider setting reminders on your calendar to ensure you make your payments on time.

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Alternative pet financing options

If a pet loan doesn't sound like the best option for you, there are other ways to get the funds you need.

Pet insurance: Perhaps the best way to avoid having to take out a loan for pet care expenses is pet insurance. The average monthly premium for a dog is $53.34 compared to $32.25 for a cat. Pet insurance can help you cover a bill if you don’t have the money on hand.
Credit card: You could also put a pet-related expense on a credit card. Some credit cards offer 0% APR for a promotional period — if you can pay off your balance before that period ends, this can be a great option. However, credit cards typically have higher interest rates than a pet loan.
Work with your vet: Some veterinarian clinics may allow you to use a payment plan rather than having to pay the whole thing up front. Talk to your vet to see if this is an option they offer.
Consider a cheaper option: If your pet needs an expensive procedure, you don’t have to go with the first quote. Ask other vets what their prices are, and reach out to local veterinary colleges — they sometimes offer less expensive treatments so students can gain experience.
Service animal grants: If you’re considering taking out a pet loan specifically for a service animal, several organizations provide grants for people with disabilities looking for a service dog. U.S. Service Animals has a list on its website, and there may be additional resources specific to your area.

Learn More: Personal Loan vs. 0% APR Credit Card

Pet loans FAQ

Can I get a pet loan with bad credit?

It will depend on the lender, but with a low credit score, you will likely be charged higher APRs on loans you do qualify for. A low credit score and low income may also limit the amount of money you can qualify to borrow.

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Can I use a personal loan to finance pet adoption fees?

Yes, you can use a personal loan for pet adoption fees. However, it may be better to save over time rather than pay the interest and fees associated with a personal loan.

Are personal loans a better option than pet insurance?

No, pet insurance will usually be a better option than a personal loan. Pet insurance will reduce your costs overall, even for normal care, while personal loans come with interest and often fees.

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Meet the expert:

Hilary Collins

Hilary Collins is a finance writer and editor. She loves taking topics that could be dry and complicated and turning them into engaging stories with actionable takeaways.