Best Medical Emergency Loans in December 2024

When a medical emergency strikes, it can be a shock to both your body and your bank account. We reviewed 31 lenders for the best medical emergency loans and put Upgrade at the top of the list for competitive rates, same-day funding, and loans for fair credit. Other strong options for medical emergency loans include SoFi and LightStream.

Best medical emergency loans

Methodology

Credible evaluated the best personal loan lenders for medical emergencies based on funding speed, minimum credit score requirements, customer experience, minimum fixed rates, maximum loan amounts, repayment terms, fees, discounts, and whether cosigners are accepted. Credible's team of experts gathered information from each lender's website, customer service department, directly from our partners, and via email support. Each data point was verified by a third party to make sure it was accurate and up to date.

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

What is a medical emergency loan?

Medical debt can be devastating — it's the leading cause of personal bankruptcy in the United States. You could avoid financial trouble with a medical emergency loan to cover the costs of a medical emergency. Medical loans aren't one type of loan, but describe a type of debt you can use to pay for medical procedures or consolidate medical bills.

Many types of loans can be used for medical emergencies, including:

• Personal loans: These provide a lump sum upfront that is repaid, with interest, over a set term. Loan amounts can range from under $1,000 to $200,000, depending on the lender, your credit profile, and income, with typical repayment terms between 1 and 7 years. APRs — which include the interest rate and any upfront fees — generally range between 7% and 36%.
• Payday alternative loans (PALs): PALs are relatively small, shorter-term loans offered by certain federal credit unions to their members as a more affordable alternative to payday loans. PALs I have amounts from $200 to $1,000, with terms from 1 to 6 months. You must also be a member of the credit union for at least a month to qualify. For PALs II, however, the maximum amount increases to $2,000, with terms from 1 to 12 months, and there is no waiting period requirement upon joining the credit union. APRs on both PAL types are capped at 28%.
• Credit card cash advances: If you have enough available credit, you may be able to request a cash advance from your credit card, which would then be added to your outstanding balance. Amounts are based on a percentage of your credit limit, with a variable rate that can reach 29.99% APR or higher, depending on the card. Note that fees may be applied and unlike regular purchases, interest is charged on cash advances immediately.
• Cash advances through apps: These are relatively small loans that are repaid on your next payday. You may be able to receive your funds for free within a few days, or instantly for a fee. While many of these services do not charge a traditional APR, optional tips, subscription fees, and fast funding fees can make these apps nearly as costly as payday loans.

When you apply for a personal loan, you'll need to tell the lender how you intend to use the funds, usually from a pull-down list on the application or prequalification form. “Medical expenses” is an option with many lenders or you may need to select “other” or “major purchase.”

Compared to other loan types, personal loans offer quick funding — money could be in your account as soon as the same day you apply, depending on the lender. They also have lower average interest rates than credit cards. Once the money is in your account, you're free to use it for the purpose specified in your application.

Pros and cons of medical loans

Before taking out a loan to pay for medical expenses, be aware of the benefits and drawbacks. We've highlighted the pros and cons of using a personal loan for medical costs below.

How to get a loan for a medical emergency

If you're facing a scenario where you need funds to cover a medical emergency fast, personal loans could be an option to explore. Personal loan lenders often offer large loan amounts, competitive rates, long repayment terms, and fixed, predictable monthly payments. Here's how the application process works.

1. Research loan providers

You can improve your approval odds by researching lender requirements upfront. Then, try to prequalify with those that look like a good fit. It can also help to look at lenders that offer secured loans or that allow you to apply with a cosigner or co-borrower.

2. Get prequalified

The first step is to research which personal loans you're most likely to qualify for. Knowing your credit score, income, and the amount you're aiming to borrow can help you create a list of your best options. Then, if possible, request online quotes by prequalifying, which won't affect your credit score.

This usually only takes a few minutes and can give an estimate of the rates, amounts, and terms you may be eligible for from different lenders. Prequalification is not an offer of credit, however, and your final rate may be different. When you proceed to a formal application, the lender will conduct a hard credit inquiry, which can lower your score by a few points temporarily.

While some lenders will deny your prequalification request if you have bad credit, that doesn't mean you should give up. Eligibility requirements vary widely from lender to lender, and some are more lenient than others.

3. Compare loan quotes

After you prequalify, compare your options, focusing on the APRs, loan amounts, terms, and funding times. Consider factors such as:

• Is the loan amount offered high enough for your needs?
• Would the monthly payment comfortably fit in your budget?
• Is the overall cost competitive?
• Could you get the funds quickly enough?

4. Complete the final application

If you find a loan that you think could work for you, complete the full application. During that process, the lender will perform a hard credit check, which impacts your credit temporarily, and will likely require you to verify the information on your application (e.g. provide documents to prove your income, employment, and identity).

If you're approved, you'll review and sign the loan documents. From there, the lender will send the funds to your designated bank account, and you can use them as needed. Some lenders can provide your funds as soon as the same or next business day following approval, but this varies.

Alternatives to personal loans for emergency medical expenses

If a personal loan doesn't seem like the right fit, you may consider other medical financing alternatives, including:

Home equity loan or home equity line of credit

Home equity loans and home equity lines of credit (HELOCs) allow you to borrow against the equity in your home, either by receiving a lump sum or accessing a credit line, and often come with lower interest rates than unsecured loans. However, you'll need to pay upfront fees, and there's a risk of foreclosure if you can't afford repayment.

A home equity loan could be more suitable if you don't need the money now, have sufficient home equity, and are confident in your ability to repay the debt. Medical debt can be devastating — it's the leading cause of personal bankruptcy in the United States — which is why we urge caution in tying a valuable asset (and one that may be protected in bankruptcy) to your medical debt.

Home equity investment

This home equity loan alternative allows you to tap your home equity in exchange for providing a share of your home's future appreciation or equity to a company when you sell your home. These arrangements are accessible to people with poor credit and no income, and they don't require monthly payments. But they can diminish your profits significantly when you sell.

Reverse mortgage

Also known as a home equity conversion mortgage, a reverse mortgage provides a way for homeowners aged 62 and older to tap their home equity without making monthly payments. The loan is repaid when the home is sold or inherited.

Peer to peer (P2P) loan

Peer-to-peer lending is an alternative to traditional lending that involves matching up prospective borrowers with investors. It could provide an option for people with low credit scores or modest incomes who have trouble qualifying for other types of financing. However, drawbacks include limited availability and, in the case of lending circles, possible delays in funding.

Medical credit cards

Some healthcare providers may promote the use of a medical credit card to pay for treatment. Medical credit cards are issued by third-party finance companies and often come with a deferred interest promotion that allows you to avoid interest charges for a period of time. However, if you need longer than the promotional period for repayment, you could get stuck with a huge bill for retroactive interest.

Healthcare provider direct payment plan

Some healthcare institutions offer direct payment plans that may be interest-free. This option is common for patients who received urgent care in a hospital setting. There's typically no credit check required, and you pay the hospital directly.

401(k) hardship withdrawal

You may be able to take a hardship distribution from your 401(k) account or other qualified retirement plan to pay for medical expenses and avoid the 10% early withdrawal tax penalty. This move can interfere with your retirement savings goal, but it might be the right solution if you can only qualify for high-interest loan products or you face a decline in income that will affect your ability to repay a loan.

Emergency personal expense

Most qualified retirement plans, including 401(k) plans, let you withdraw $1,000 one time per year to be used for an emergency personal expense without a 10% early withdrawal penalty.

Medical crowdfunding

A crowdfunding campaign allows you to ask for help from your friends, family and extended social network. The crowdfunding platform takes a cut of your earnings, but some people are successful at raising enough money to cover their healthcare costs. Some platforms, such as Help Hope Live, specialize in medical crowdfunding and pay your medical bills directly.

Bankruptcy

Bankruptcy is a legal process that can reduce what you owe and halt collections attempts, but experts consider it a last resort because it damages your credit for seven to 10 years.

Other ways to reduce medical costs

In addition, you may want to explore other ways to reduce your medical costs, including:

• Shop around for scheduled healthcare services: If scheduling a procedure or test in advance, use your state's price comparison tool or a resource such as FAIR Health to compare costs at local healthcare facilities, keeping your health insurance network in mind.
• Negotiate with your provider (and know your rights): Explain your financial situation to your healthcare provider and try to negotiate your bill. Some states and cities provide funding for medical debt relief, and nonprofit hospitals are required to provide financial assistance to eligible patients. Be aware of your rights under the federal No Surprises Act and dispute any bills that seem to contradict the law.
• Work with a medical bill negotiation service: Companies such as Goodbill have experience negotiating medical bills on behalf of patients. The service is typically free, but the company takes a cut of your savings.
• Open a health savings account: If you're enrolled in a high-deductible health plan and expect future medical bills, consider setting up a health savings account (HSA), which is a tax-advantaged savings account you can use to pay for medical expenses. The funds never expire.
• Check whether you can deduct your medical expenses: You may be able to deduct the portion of your medical expenses that exceeded 7.5% of your adjusted gross income for the year if you itemize your deductions when filing your tax return.
• Secure more comprehensive health insurance coverage: If you expect ongoing healthcare costs, consider choosing a more comprehensive health plan with a lower deductible and out-of-pocket maximum, assuming your employer offers multiple options or you buy your healthcare coverage from the health insurance marketplace. You may qualify for a special enrollment period if you lose your job or meet other criteria.
• Check Medicaid eligibility: Check whether you qualify for your state's Medicaid program. Some states have a "medically needy program" and/or a program for people with disabilities that may provide coverage even if your income is above the limit for regular Medicaid.

No-credit-check loans for medical emergencies

If concerns about your credit pose a problem, a no-credit-check loan might or might not be the right solution for you. A no-credit-check loan can be a specific type of loan or a category of loans. For example, your 401(k) plan might allow you to borrow from your account without a credit check. However, failure to repay the loan on time, with interest, could mean that any unpaid amount becomes a taxable distribution.

Other examples include cash advance apps and payday alternative loans (which may involve a soft credit check). Review the rates and terms to ensure you can afford the repayments. If a loan doesn't require a credit check, there's often a catch, such as high rates and fees, a short repayment period, or both.

Related Articles:

• Best Loans for Bad Credit
• Best Personal Loans for Good Credit
• Best Personal Loans for Fair Credit
• Best Personal Loans for Excellent Credit
• Best Personal Loans With a Cosigner