The current COVID-19 virus has made us realize the importance of having emergency funding for medical emergencies. But, unfortunately, anyone who has to deal with a medical emergency will face rising costs in treatment and maintenance.
With medical costs skyrocketing to unrealistic heights, even your medical insurance isn’t enough to help you in this hurdle. That’s why you might want to look at medical emergency loans.
Here are some medical emergency loan options you can consider:
Many still think that insurance will cover much of the costs of this pandemic. However, the sad reality is, even if your insurance can cover some costs based on your coverage, you still end up paying a lot out of pocket, especially for post-treatment expenses like maintenance medications and therapy.
Medical loans provide an extra source of finance alongside your insurance when you face such challenges. Thankfully, there’s no shortage of available loans for healthcare. In addition, medical loans can ease your financial burden and give you a better quality of treatment.
You can apply for a medical loan at most traditional banks and financial institutions. Also, some online lenders can finance your needs. However, they limit themselves based on your credit standing.
For more elective and expensive surgeries, special medical offices within the hospital offer different payment schemes and work with local banks to set up a payment agreement from both the patient and the hospital.
Medical Loan Alternatives
Getting a medical loan isn’t as easy as it seems. Should you face difficulty getting a loan in hospitals or banks, there are some alternatives that you have. Check them out below and see what fits your needs.
Medical Billing Advocate
Medical billing advocates are not directly a loan alternative, but they serve as friendly advocates that can assist you in opening options to help pay up your dues.
Medical billing advocates are professionals that assist patients in hospital bills and dispute errors plus incorrect charges you find in your bills. Having an advocate to fight for a cheaper bill is essential because there are a lot of instances of false charges, especially for extensive surgeries. Also, these advocates can also point you to loan alternatives and other nonprofits that can assist you in funding your bills.
Overall, hiring a medical billing advocate is worth the money to reduce your financial burden and expand your options in paying these bills.
Medical Credit Card
There are times that your doctor isn’t open to negotiating a payment plan and may insist on paying up your dues fast. When this happens, you can rely on medical credit cards.
Medical credit cards are specialized credit cards that are only eligible for selected healthcare providers. Fortunately, hospitals and clinics often have an extensive list of eligible providers that you can work with.
Medical credit cards work best with outgoing bills such as maintenance medicines, after-surgery therapies, or regular treatment sessions. In addition, medical credit cards offer the flexibility of paying immediate costs.
However, the downside is they tend to have higher interest rates. So while a medical credit card is still a good option, you must be capable of paying off dues on time.
Online loans are a convenient option for paying dues quickly. They serve as a virtual financial institution that offers instant approval and transfer of funds without looking at your credit score or needing collateral. Your only requirement is verifying your identity and setting up an online wallet.
There are various lending websites that offer services directed at specific locations, like Creditninja.com’s Birmingham personal loans or installment loans in Miami. The good thing about online loans is that after paying your first loan, you’ll be enrolled in their trust system. It gives you a more significant limit and flexible payment scheme for your next loan with them.
Collateral loans are likely the most common loan options people take for emergencies. Collateral loans are often available in traditional banks and auto shops if you have a vehicle. These loans are good alternatives if you suffer from bad credit and need a much bigger loan.
Collateral loans often have a higher approval rate since they look less on your credit score and readjust your loan based on the market value of your collateral.
For instance, if you use a vehicle worth $50,000 as collateral, your lender might offer a contract of similar value plus interest. However, remember that you’re placing a considerable risk of repossessing your asset should you default on the contract or incur too many penalties. So before you set up collateral, make sure you are aware of the contract clauses for repossession and other agreements.
Dealing with medical bills is a heartbreaking and stressful hurdle to get over. It adds stress to your life along with the overly-expensive treatment costs. Fortunately, there are many options you can check that offer good loans regardless of credit score. As long as you are thorough with your search, setting up a loan with a perfect repayment scheme won’t take long.