Can Payday Loans Be Used for Medical Emergencies?
When you contact a medical institution for help, you do not always know how much money you will need. What if you did not expect such expenses? The doctor may prescribe expensive medications that do not have cheaper generics. Medical care and illness cannot wait. In this regard, often, money is needed urgently. And applying for a bank loan is usually a waste of time as approval rates are very low in this case.
Why banks refuse to give a loan for medical emergencies
First, such lending is not very profitable for US banks. They understand there is a high risk of not getting the funds back. Secondly, the borrowers are in no hurry to take bank loans as they often come with huge interest and require collateral.
- High risk of non-repayment. Since the borrower is a person who is in a difficult situation, banks understand that the risk of default is higher. This is especially important when it comes to serious illnesses. Therefore, if a person has a serious diagnosis, he or she often asks healthy relatives to apply for a loan but they are not always ready to agree to this.
- The need to check the loan purpose. The loan for medical treatment is targeted, therefore, the bank must verify that the funds are really needed for medical services. This can be quite difficult, especially if it is a rare diagnosis and is associated with medical confidentiality. Therefore, lenders usually negotiate with medical institutions: a loan can be taken only if a person is going to be treated in a particular clinic. In this case, the clinic can offer lending services to the patient.
- Low profitability. People in a difficult situation naturally tend to minimize liabilities, so a loan is likely to be taken for a smaller part of the amount needed for medical treatment. The rest is usually covered through the sale of property or loans from relatives. This leads to the fact that loans for treatment, as a rule, are not too large: on average, they do not exceed $1,000. For banks, this is not a very high yield, which means that they will not invest much in the development of this area.
- Big insurance. If a person is going to have an operation or serious treatment, the cost of insurance on a loan will seriously increase. This is another reason why a relative may be advised to take loans in such cases. The benefit compared to a consumer loan can be completely leveled due to the cost of an insurance policy, which in any case will turn out to be more expensive: the bank already knows that the person is going to be treated.
- Difficulties with checking medical facilities. If something turns out to be wrong with the clinic, the insurance company will most likely refuse to pay out. This means that the institution should be checked in advance, and this again requires certain costs. This is the second reason why banks usually approve loans for treatment only in specific clinics – or generally only for the purchase of drugs.
Should I take out a loan for medical treatment?
Let’s be honest: because of these difficulties, it is sometimes more profitable for a person to take a regular consumer loan. Insurance on a consumer loan is not so expensive, and treatment is not limited to a narrow circle of clinics. The interest rate can be various – it all depends on the offer. But situations are different. If you have checked several offers and are convinced that a medical loan is more profitable in your case, we recommend that you use it. If not, it is better to choose a consumer loan, which is issued for any needs.
Where to get money for medical emergencies
You can get a loan for medical treatment in almost any US bank. But if the bank refuses to give you a loan or you have no time to wait for the bank’s decision, you can apply for a fast payday loan. In this case, you do not need to collect any papers and confirm your income – you can apply 24/7 in one click and use the money for whatever purpose, including for medical care, dentistry, medicines, surgeries, and even health insurance.
There is no need to provide guarantors or collateral, and loan approval rates are very high – up to 94%. if you have a steady income and a good credit history, you will surely get approved for a payday loan. If you are unemployed or have a poor credit score, do not despair – you still have a high chance of getting accepted.
You need to spend just a couple of minutes on applying and the money will be transferred to your bank account as soon as the same day or the next day. You only need a device with access to the Internet. Today, a loan for medical emergencies is available to everyone without exception!
How to get a payday loan for medical treatment
Applying for a payday loan has never been easier:
- Fill out an online application;
- Wait for the lender’s decision (it is usually instant);
- Get the funds transferred to your bank account in the shortest possible time.
Keep in mind that customers who apply for a payday loan for the first time may be eligible for smaller loan amounts. In case of timely loan repayment, the available amount and loan duration will be increased.
What is a payday loan can be used for?
A payday loan can be issued for any medical purpose. It does not require a doctor’s note, medical certificate, referral or prescriptions for medicines.
You can borrow cash for:
- medical consultation;
- dental services (therapy, surgery and orthopedics);
- surgical procedures and operations;
- plastic surgery;
- vision correction operations;
- biomaterial testing;
- ultrasound diagnostics, X-ray, MRI, CT, etc;
- gynecological procedures and operations, incl. childbirth;
- medical tourism;
- purchase of medicines prescribed by a doctor;
- purchasing health insurance for yourself or family members;
- sanatorium treatment and health improvement;
- other medical services.
The list goes on and on. No one will require a documentary report on the funds spent.
Tips to consider when applying for a medical emergency loan
If you decide to take out a loan for medical treatment, we advise you to adhere to the following rules.
- Study the terms and conditions. There is a possibility that such a loan will not be profitable due to expensive insurance, so be sure to compare the terms and conditions of a medical loan with those that you can get if you apply for a regular consumer loan. But do not send several applications to banks at the same time: this may negatively affect your credit history.
- Get a second opinion. We remind you that expensive treatment is not always necessary. If a doctor makes a serious diagnosis after a short examination and recommends buying a unique remedy that can cope with it, we recommend that you consult other doctors in different institutions. Gather reviews about the chosen clinic, check hospital ratings and rankings, compare the cost of similar procedures and operations from different specialists. But remember that the quality of medical treatment comes first.
- Consider a secured loan. Since a medical loan is a big risk for a bank, they may offer you loans secured by property. Try to calculate the associated costs and decide which option will be more profitable in your case: a loan for treatment or a secured loan.
Tags: healthcare, medication, medicine, online loans, payday loans