Nobody plans to get sick. No one prepares a budget for surprise surgery or a last-minute hospital visit.
But the medical bills come in anyway — and they come in quickly.
Medical debt is the leading cause of personal bankruptcy in the United States. More than 100 million Americans now have some kind of medical debt. That’s not a small problem. That’s a crisis.
The good news? You have more options than ever to cover medical care without emptying your savings or selling your car. Over the last 10 years, medical loan products have become more widely available and borrowers today can choose from real options — not simply one-size-fits-all solutions.
This guide takes you through 7 simple medical loan options. We’ll describe how each works, whom it’s best for, what it costs and what to look out for. You’ll know where to start by the end.
First, Let’s Discuss Why Medical Loans Matter
Before diving into the options, it’s helpful to know what a medical loan really is.
A medical loan is any type of financing that pays for health care expenses. This includes everything from surgeries and dental work to vision care, mental health treatment, fertility treatments and prescription medications — even medical travel.
Some medical loans are specifically tailored for healthcare expenses, unlike a general personal loan. Others are general-purpose loans that people take out for medical bills.
Either way, the objective is the same: spread the cost of care over time so you’re not on the hook for one giant bill all at once.
Healthcare does not wait for your finances to be ready. And knowing that you have a plan means you can concentrate on getting better — not worrying about expenses.
How Medical Debt Changes the Lives of Real People
Here’s what to know about medical debt in the U.S.:
| Statistic | Number |
|---|---|
| Americans with medical debt | 100 million+ |
| Average medical debt per person | $2,000 – $5,000 |
| Medical bankruptcies per year | ~500,000 |
| People who skipped care due to cost | 1 in 3 adults |
| % of GoFundMe campaigns for medical costs | 33% |
These numbers illustrate why access to flexible medical loan options is not a luxury — it’s essential for millions of families.
Now, let’s dive into the actual options.
Option 1: Personal Loans From Your Bank or a Credit Union
This is one of the most common ways people pay for medical care.
A personal loan is a one-time amount of money that you borrow from a bank or credit union. You repay it in equal monthly installments over a specified period — typically 12 to 60 months.
How It Works
You apply, get approved, get the funds and start making payments. The rate you’re offered will depend on your credit score, income, and the lending terms.
Personal loans are flexible. You can draw on the money for any medical expense — hospital bills, visits to specialists, surgical procedures, rehab or therapy.
What You’ll Typically Pay
| Credit Score Range | Estimated APR |
|---|---|
| 720 and above (Excellent) | 7% – 12% |
| 680 – 719 (Good) | 13% – 18% |
| 620 – 679 (Fair) | 19% – 25% |
| Below 620 (Poor) | 26% – 36% or higher |
Who This Works Best For
If you have good credit and need a larger sum — maybe $5,000 or more — personal loans are a strong choice. Banks such as Discover, LightStream and SoFi offer excellent personal loans to qualified borrowers at low rates.
Credit unions are typically known to have better rates than traditional banks — even more so for existing members. If you already belong to a local credit union, that’s an excellent place to begin.
Watch Out For
Origination fees, prepayment penalties and high rates if your credit score is low. Always read the fine print before you sign anything.
Option 2: Medical Credit Cards
Medical credit cards are intended for health care costs specifically. They function like a regular credit card, but they’re accepted at healthcare providers — doctors, dentists, hospitals, vision centers and so on.
The Best-Reviewed Medical Credit Cards
The two largest players in this space are CareCredit and Alphaeon Credit. These cards can be used at thousands of healthcare providers nationwide.
The Big Draw: 0% Interest Introductory Offers
Promotional financing offers are what make medical credit cards so appealing. Many provide 0% interest for 6, 12, 18 or even 24 months — as long as you pay off the balance before it ends.
So if you have a $3,000 dental bill and spread it out over 18 months at 0% interest, you’ll pay exactly that — $3,000 — nothing more.
The Catch You Need to Know
Here’s the catch with medical credit cards.
If you fail to pay off the entire balance before the promotional period runs out, you won’t just begin paying interest on the remaining balance. In most cases, the full amount of interest that accrued during the promotional period is tacked back on — all at once.
This is known as deferred interest, and it can transform a manageable bill into one that’s much larger.
Who This Works Best For
Medical credit cards are best for people who can realistically pay off the balance before the promotional period ends. If you make payments on time and the cost of the procedure fits your budget, this is one of the best medical loan options out there.
Option 3: Healthcare-Specific Financing Plans
Some health care providers and clinics — particularly dental offices, cosmetic surgery centers and fertility clinics — have their own in-house financing programs.
Such plans are arranged directly through the medical provider. You apply with the clinic, get accepted and pay the clinic directly for the service in monthly installments.
Why This Option Should Be on Your Radar
There’s no middleman. The process is traditionally quicker and easier than applying for a bank loan. You may also find that approval requirements are a bit looser, which could help if your credit is less than pristine.
Some clinics also work with third-party financing companies to provide these plans. Others handle it entirely in-house.
Real-World Example
Let’s say you have dental implant surgery scheduled that costs $4,500. Your dentist’s office offers a 12-month interest-free payment plan for qualified patients. You put down $500 and are charged $333 a month for 12 months. Done — no bank required.
What to Ask Before You Agree
Before signing up for a provider financing plan, always ask these questions:
Is there interest, and if so when does it start to accrue? What happens if I miss a payment? Can I pay off early without penalty? Is this plan self-administered or outsourced?
Option 4: Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA)
Technically, these aren’t loans. But they are one of the smartest ways to pay for medical care — and many people don’t use them properly.
What Is an HSA?
A Health Savings Account (HSA) is a type of savings account used by people who have high-deductible health insurance plans. You deposit pre-tax money into the account, and that money can be used to pay for qualified medical expenses — totally tax-free.
This means that, in effect, you’re getting a discount on every dollar of medical spending equal to your tax rate.
What Is an FSA?
A Flexible Spending Account (FSA) is similar, but it’s through your employer. You defer pre-tax wages from each paycheck every year, and then use the proceeds towards eligible medical expenses.
The big difference: FSA accounts usually expire at the end of a calendar year. HSA funds roll over indefinitely.
HSA vs. FSA at a Glance
| Feature | HSA | FSA |
|---|---|---|
| Requires high-deductible plan | Yes | No |
| Funds roll over | Yes | No (use-it-or-lose-it basis) |
| Contribution limit (2024) | $4,150 individual ($8,300 family) | $3,200 |
| Tax advantages | Triple tax benefit | Pre-tax contributions |
| Employer contribution allowed | Yes | Yes |
Who This Works Best For
If you can access either of these accounts via your employer or insurance plan, take advantage. They won’t pay for a $30,000 surgery on their own, but they can reduce the big price tags over time — and the tax savings add up quickly.
Option 5: Medical Support Loans From Online Lenders
Internet lending has completely revamped the game for borrowers everywhere — including those in search of medical loan options.
Online lenders such as Upstart, Prosper, LendingClub and Best Egg offer personal loans that may be used for medical expenses. The application process is quick, often entirely digital, and decisions can arrive in minutes.
Why Online Lenders Stand Out
Speed is the biggest advantage. In a medical situation, weeks of waiting for a bank to process your application may not be an option. Most online lenders can deposit your loan funds within one to two business days.
Online lenders are usually also more lenient on credit requirements. Some rely on alternative data — such as employment history and education, in addition to your credit score — to evaluate your application.
If you’re exploring how to manage healthcare costs holistically, Global Health Financial offers helpful guidance on planning and financing your medical expenses smartly.
Typical Terms From Online Lenders
| Lender | Loan Amount Range | Typical APR | Funding Time Frame |
|---|---|---|---|
| Upstart | $1,000 – $50,000 | 6.7% – 35.99% | 1 business day |
| LendingClub | $1,000 – $40,000 | 8.98% – 35.99% | 2–4 business days |
| Prosper | $2,000 – $50,000 | 8.99% – 35.99% | 1–3 business days |
| Best Egg | $2,000 – $50,000 | 8.99% – 35.99% | 1–3 business days |
APR ranges are estimates only and in practice may vary based on creditworthiness.
Who This Works Best For
Online loans are ideal for borrowers who want quick access to money and prefer a seamless digital process. They’re also a good choice if you’ve already been rejected by a traditional bank.
Option 6: Work Out a Payment Plan Directly With Your Hospital
This one shocks a lot of people — but it really works.
Most hospitals and medical facilities will establish a payment plan with you directly. There’s no credit card, and no bank. You just need to ask.
Why Hospitals Are Usually Willing to Work With You
Hospitals would prefer to receive some payment over time than none at all. Most have financial assistance programs — sometimes referred to as charity care — intended for patients who cannot afford to pay in full.
Such programs are not widely publicized. You have to ask about them.
How to Start the Conversation
Call your hospital or provider’s billing department. Tell them you are having a hard time paying the bill, and see what options they can offer. Ask specifically about:
Interest-free payment plans. Financial hardship programs. Bill reductions or write-offs. Discounts for paying in full.
You’d be amazed how often hospitals slash bills dramatically — in some cases by 20% to 50% or more — for patients with serious financial need.
A Real Scenario
A $10,000 hospital bill could be reduced down to $6,000 through a financial hardship program. That $6,000 could then be spread over 24 months interest-free — lowering your payment to $250 a month. No credit application. No interest. Just a conversation.
It’s one of the most powerfully underused medical loan options out there.
Option 7: Nonprofit and Government Assistance Programs
There are nonprofit organizations and government programs that can help cover medical costs — sometimes 100% — for people with low income or severe financial hardship.
Government Programs to Know About
Medicaid offers free or low-cost health coverage to low-income adults, children, pregnant people, elderly individuals and people with disabilities who meet their state’s eligibility requirements. If you are eligible, it can cover an extensive array of medical services.
CHIP — the Children’s Health Insurance Program — provides coverage for children in families who earn too much money to qualify for Medicaid, but not enough to afford private insurance.
The Hill-Burton Program requires certain hospitals that received federal funding to provide free or reduced-cost care to eligible patients.
Nonprofits That Assist With Medical Expenses
| Organization | What They Help With |
|---|---|
| Patient Advocate Foundation | Chronic and life-threatening conditions |
| HealthWell Foundation | Underinsured patients with serious illness |
| NeedyMeds | Prescription drug costs |
| RxAssist | Medication affordability programs |
| United Way 211 | Local healthcare and financial resources |
Who This Works Best For
These programs are for individuals who do not have insurance or have limited income. If you’re coming up short on cash or in a tight financial position, these resources should be your primary focus before borrowing anything.
You don’t have to go through this alone. Nonprofit patient advocates can help you navigate the system, fill out applications and find every dollar of assistance for which you’re eligible.
Comparing All 7 Medical Loan Options Side by Side
| Option | Best For | Interest | Approval Speed | Credit Required |
|---|---|---|---|---|
| Personal Bank/CU Loan | Large expenses, good credit | Yes | 3–7 days | Yes |
| Medical Credit Cards | Manageable costs, disciplined payers | 0% promo / high after | Fast | Moderate |
| Provider Financing | Clinic-specific procedures | Varies | Same day | Flexible |
| HSA / FSA | Tax-advantaged savings | None | Immediate | No |
| Online Lenders | Fast funding, flexible credit | Yes | 1–3 days | Varies |
| Hospital Payment Plan | All income levels | Usually none | Same day | No |
| Nonprofit/Government | Low income, no insurance | None | Varies | No |
Smart Tips Before Applying for Any Medical Loan
Whichever route you take, there are a few key rules to follow before you make your commitment:
Always compare three or more options. Rates and terms differ more than most people know. A half-hour comparison can save you thousands.
Get everything in writing. Verbal promises mean nothing. Everything should be documented, including promotional interest rates, payment schedules and forgiveness terms.
Check your credit report first. Mistakes on your credit report can drag down your score and increase your interest rate. Fix them before you apply.
Borrow only what you absolutely need. More debt means more interest. Determine the minimum you need and borrow that — not a dollar more.
Ask about financial assistance before you borrow. You may be eligible for assistance you didn’t know was available. Always look for grants and assistance programs first.
FAQs: Your Medical Loan Questions Answered
Which medical loan is easiest to get approved for? Hospital payment plans are the simplest — they don’t require a credit check. Nonprofit assistance programs are likewise accessible with no credit requirement. When it comes to formal loans, online lenders generally have less stringent approval guidelines compared with traditional banks.
Can I get a medical loan with bad credit? Yes. Some online lenders approve borrowers with fair or poor credit, although your interest rate will be higher. Medical credit cards and provider financing plans are also available, often with less stringent credit requirements. Hospital payment plans require no credit check at all.
How much can I borrow with a medical loan? It all depends on the type of loan and your financial profile. Personal loan amounts generally vary from $1,000 to $50,000. Medical credit cards are subject to limits set by the issuer. Hospital payment plans are based on your actual bill.
Will a medical loan impact my credit score? Every loan you apply for includes a hard credit inquiry, which can drop your score by a few points temporarily. But consistent, on-time payments will actually build your credit over time.
Is it better to use a credit card or a personal loan for medical bills? It depends on your situation. A medical credit card wins if you can pay off the balance during a 0% introductory period. If you want extended repayment terms or a larger amount, a personal loan is typically a better match.
Are medical loans tax-deductible? The loan itself is not tax-deductible. But if you used HSA or FSA funds to pay for those expenses, those contributions were made pre-tax — a major benefit. For your specific circumstances, always consult with a tax professional.
What if I can’t pay my medical bills at all? Call the hospital billing department straight away. Explain your situation. Inquire about charity care, financial hardship programs and payment plans. A number of hospitals are legally mandated to provide some type of help. The longer the bill goes without a response, the worse it will get — making first contact early leaves more options open.
You Have More Choices Than You Realize
Medical bills can seem like a wall you cannot scale. But the reality is, there are more doors in that wall than many people realize.
You’ll find a wider array of medical loan options than ever before — from personal loans and medical credit cards to hospital payment plans and nonprofit assistance programs. The trick is knowing which door best suits the particulars of your situation.
Take a breath. Evaluate your credit, your earnings and the size of the bill. Then match your circumstances to the option that fits best.
You shouldn’t have to sacrifice your health for your financial future. The right medical loan option can provide you with both — treatment today and affordable payments tomorrow.
Start by having the conversations. Call your hospital. Ask your employer about HSA or FSA options. Compare online lenders. Contact a nonprofit advocate if necessary.
Your health comes first. The money — with the right plan — will follow.