Best Medical Loans in February 2025

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. Upgrade, along with Best Egg and Upstart, approved the most loans for medical expenses on the Credible marketplace.

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

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.

People who took out loans for medical expenses in 2024 through Credible borrowed $8,169, on average, and had a median FICO score of 675.

Methodology

Credible evaluated 32 lenders across 1,100 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.

We scored lenders based on the following:

• Rates and fees: 18%
• Loan terms: 18%
• Customer experience: 17%
• Eligibility: 14%
• Customer satisfaction: 10%
• Efficiency: 10%
• Options for poor credit and no credit: 9%
• Discounts: 4%

Each data point was verified by a senior editor 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.

How to compare medical loans

When researching personal loans for medical expenses, prequalify with several lenders to get estimates of loan amounts, APRs, and repayment terms you might qualify for. Then, consider the following factors:

• Eligibility requirements: If you have fair or poor credit, narrow down your options to lenders that have flexible credit requirements, such as Upstart and Avant. If you have good or excellent credit and sufficient income, you'll have plenty of options, so you can choose from the lender that offers the lower rates.
• Rates and fees: Consider the range of interest rates and origination fees each lender charges. Note that an origination fee will reduce the amount you receive since it's deducted from the loan proceeds upfront.
• Loan amounts: If you have a lot of medical debt or are facing an expensive procedure, look for lenders that offer large loans. For example, BHG Financial offers personal loans up to $200,000, while SoFi and LightStream offer $100,000 loans. Most lenders cap loan amounts at $50,000.
• Repayment terms: Longer repayment terms cost more over time, but they come with lower monthly payments. Make sure the lender you choose offers a term that works with your budget.
• Lender reputation: Make sure to check that the lender is licensed in your state and read reviews on third-party sites like Trustpilot.

Learn More: How To Compare Personal Loans

What is a medical loan?

A medical loan is any loan offered by a bank, credit union, or online lender that you can use to pay for upcoming medical expenses or pay off medical debt. There are several types of medical loans, including:

• Personal loans: Provides a lump sum of cash, often without collateral, that you can use for almost any personal expense and repay over time.
• Personal lines of credit: Allows you to borrow repeatedly against a credit limit without reapplying, which is helpful for ongoing medical expenses like IVF cycles.
• Home equity loans and home equity lines of credit (HELOCs): Methods of borrowing against the equity in your home that feature low rates but require upfront fees and a lengthy funding process.
• Credit cards: Like a line of credit, a credit card gives you a credit limit from which you can borrow and pay back. APRs on credit cards tend to be one of the more expensive ways to finance medical expenses. Compare a card's APR with other types of funding before proceeding.

Compare: Personal Loan vs. 0% APR Credit Card

How do medical loans work?

Most medical loans involve signing a loan agreement with a lender. The lender determines the amount you qualify for and your interest rate based on your credit score, income, and other financial factors. If charged an origination fee, that will be deducted from the loan amount upfront. In other words, if you borrow $10,000 with an origination fee of 5%, you'd receive $9,500.

Once you receive the cash you need, either as a lump sum disbursement to your bank account or a withdrawal from your credit line, you can use it to pay medical bills or finance other medical expenses. If you already paid your medical bills with a credit card, you could use a medical loan for debt consolidation.

You'll then repay the lender with interest over time. Personal loans offer the benefit of fixed monthly payments that are easy to plan for. The lender may give you the opportunity to choose your repayment term, allowing you to customize your monthly payment to fit your budget.

Related: How Do Personal Loans Work?

Pros and cons of medical loans

There are several benefits and drawbacks of using a personal loan for medical expenses.

Pros

• Low interest rates on average: A 2-year personal loan has an average APR of 12.32% compared to an average APR of 21.47% for credit cards, according to the Federal Reserve.
• Predictable monthly payments: Most personal loans come with fixed interest rates, so you can budget for a payment that doesn't change from month to month.
• Few restrictions: Unlike medical credit cards, you can use a personal loan for almost any expense, including non-medical expenses that may arise due to your health issues. For example, you can borrow extra cash to pay for lawn care or grocery delivery while you recover from surgery.
• Quick funding: Personal loans are easier to apply for and quicker to obtain than many secured loans. Most personal loan lenders can distribute the funds within a few business days.
• May help you pay for life-changing treatment: A medical loan may help you pay for care you couldn't otherwise afford, and it may be worth taking on debt if it improves your quality of life.

Cons

• Increased debt balance: Taking on debt to pay your medical bills strains your budget and may cause your credit score to decline, at least initially. Explore other options first, like asking the hospital about financial assistance or payment plans.
• Low rates require good credit: The best rates on personal loans are reserved for borrowers with the best credit scores. Some lenders only approve borrowers with good or excellent credit, though others are more flexible.
• Many lenders charge fees: Many lenders charge an upfront fee known as an origination fee in addition to late fees and other penalties. Some lenders don't charge any fees whatsoever, but these lenders typically have stricter credit standards. For example, LightStream offers personal loans with very low rates and no fees to good and excellent credit borrowers.

How to get a medical loan

1. Work with your healthcare provider and insurance company to negotiate costs and coverage so that you understand exactly how much cash you need.
2. Research the eligibility requirements, repayment terms, and reputation of lenders that offer medical loans in the amount you need.
3. Prequalify with a handful of personal loan lenders or use a loan marketplace to compare rate estimates from multiple lenders in one place.
4. Choose a lender that offers a competitive APR and a monthly payment you can afford.
5. Proceed with the formal application, which will trigger a hard credit check and cause a slight dip in your credit score. You may need to answer additional questions and submit documents that show your income and identity.
6. Read your loan agreement carefully and e-sign the documents.
7. Receive the cash in your bank account.

Related: How To Get a Personal Loan

Alternatives to medical loans

A personal loan may not be the right fit for your financial situation. If that's the case, you have other options. If you're a low-income earner, you may even qualify for assistance, allowing you to avoid taking on new debt.

Keep in mind that medical bills aren't as urgent as credit card bills or mortgage payments with respect to your credit. The Consumer Financial Protection Bureau recently finalized a rule that prevents medical debt from appearing on credit reports. "Even without this new rule, credit reports no longer include paid medical debts, unpaid medical debts less than a year old, and medical debt under $500 from credit reporting as of 2022," notes Ashley Morgan, debt and bankruptcy attorney at Ashley F Morgan Law, PC.

However, you still need to address the debt, says Morgan. "Medical accounts can still be turned over to a lawyer and you can be sued and garnished for medical debt," she explains. Below are a few medical loan alternatives to consider.

Government assistance

If you're struggling to pay for healthcare, check whether you're eligible for your state's Medicaid or Medicare program. If you're approved for Medicaid, you may get retroactive coverage for up to three months, which could take care of your recent medical expenses. Many states also run a separate Medicaid program with higher income limits for working adults with disabilities.

Charity care

Most community hospitals are nonprofit hospitals, and federal law requires that they offer financial assistance to low-income patients. Eligibility criteria varies, but it's worth asking whether you qualify for free or discounted care based on your income.

Medical grants or interest-free loans

Depending on your healthcare needs and your state, you may be eligible for a medical grant, which doesn't require repayment, from a charitable organization. Some nonprofits also offer interest-free loans. For example, JFLA offers interest-free loans to Los Angeles patients struggling to pay for IVF treatment, while The Cade Foundation provides IVF grants, according to Feder.

"Many of the no-interest loans require a guarantor or two," she says. "This can be tough because you have to ask someone to be the guarantor, but it's great for people with bad credit, because the credit score is less important. In addition, the grants are often given based on the story of the applicants — nothing to do with credit!" explains Feder.

Grants are also available to patients with cancer, ALS, and other serious illnesses.

Payment plan

"A lot of medical providers, especially hospitals, allow for payment plans over time. It usually does not incur any interest and it usually will not report on your credit," says Morgan. Unlike financial assistance programs, payment plans are typically available to all patients regardless of income. Repayment terms vary by healthcare facility, but it's a good idea to ask what options are available.

Medical bill negotiation

Some healthcare providers and facilities will negotiate medical bills, and several companies offer negotiation services in exchange for a cut of the savings. For example, Goodbill negotiates up to 100% savings for patients, and the service is free if the company isn't able to reduce the total you owe.

Medical credit cards

Medical credit cards are credit cards designed to be used at participating healthcare providers and facilities. "There are medical providers that offer connections to programs like CareCredit that offer waived interest for a period of time," says Morgan. But there are drawbacks to using a medical credit card. "It is often advertised as zero interest in the promo period, but it is really interest accruing in the background," she says.

"If you do not pay the balance off in full within the allotted time, all the interest comes back. Usually the interest on these cards is higher than typical credit cards." If you'll need longer than the interest-free introductory period for repayment, consider a personal loan instead.

401(k) loan or hardship distribution

If you have a 401(k) account, you may be able to withdraw the amount necessary to pay for medical care for yourself or your spouse or dependents without paying a tax penalty. The withdrawal must be due to an immediate and heavy financial need and limited to only the amount you need to satisfy it.

If your plan sponsor allows, you may take out a 401(k) loan up to $50,000 or 50% of your vested account balance (whichever is less), and repay the amount with interest to your retirement account over five years. If 50% of your vested balance is less than $10,000, you may be able to borrow up to $10,000. Note that leaving your employer (or being let go) could trigger the entire loan to be due.

Read More:

• How To Get Rid of Medical Debt
• Dental Financing
• IVF Loans
• Plastic Surgery Financing
• Best Personal Loans for Good Credit
• Best Personal Loans for Fair Credit
• Best Personal Loans for Excellent Credit
• Best Personal Loans With a Cosigner