Troubling medical debt that cannot be paid is a part of life for 26 percent of adult Americans, according to a recent comprehensive Kaiser Family Foundation study.
That’s a staggering number, especially when over half of those surveyed reported being uninsured altogether. And for those living paycheck to paycheck, this reality is all too common. Wracked with anxiety about crippling medical expenses, many people turn to family, friends, or credit cards in an attempt to pay their bills.
But there’s a better way.
While finding personal loans with no credit check might not be your preferred method of settling medical debt, sometimes you just have a bill that you desperately need to pay. We’ve got the top seven ways a personal loan can help with your medical expenses.
First Things First
Before you take out a personal loan with no credit check to finance your medical bills, check the interest rate you’ll be paying should you leave your medical debt with your current creditor. Do your best to negotiate and bargain your way into a smaller, more manageable bill.
Though not always a better option, if you speak to a creditor about your financial situation, they may have a no interest payment plan. But sometimes medical debt collectors want to play hardball and will threaten to freeze your assets or find other ways to impede your life.
That’s where no credit check personal loans come in.
1. Personal Loans With No Credit Check are Unsecured
The good part about an unsecured loan is that you’re not on the hook for your collateral if you default. If you put your car up as collateral, for example, and then don’t pay your loan back on time — the loan company (usually) cannot come to get your vehicle.
What it does mean, though, is that your interest rates will likely be higher than a secured loan that involves a credit check or large banking institution. Always do your research, work with reputable companies, and read the fine print. You need to know what happens if you can’t pay back your unsecured personal loan.
2. There’s Always a Payment Plan
Medical bills and collection companies may try to collect their debts all at once, and you may not be in a financial position to pay their bills in a lump sum.
Personal loans with no credit check might be just the flexible arrangement you need to incrementally pay down debt. But buyer beware: Your interest rate could be variable, and extremely high — up to 350 percent or more in some cases.
The good news is, if you arrange a payment plan with automatic payments debited from your bank account, your interest rate may drop significantly. Always elect for a payment plan that’s workable in your finances.
Some personal loans with no credit check require a short repayment period. Make sure you know the payback time frame required for your debt consolidation efforts. The most reputable companies will work with you to find an acceptable payback period for you both.
3. You Can Improve Your Credit
Taking out a personal loan to pay off medical bills can improve your credit. Especially if you establish a payment plan, you could be well on your way to repairing your financial health.
All it takes is a little financial planning and payback savvy, and you could improve your credit score by showcasing your ability to pay a set amount on time. The higher your credit score, the lower your interest rate on credit cards or future personal loans.
Also, too many “hard inquiries” on your credit report can lower your credit score. Just by using personal loans with no credit check, you are avoiding having marks on your record!
4. Consolidate Your Debt
While it may not be the cheapest way to get out of debt, taking out no credit check personal loans to pay a slew of smaller bills can consolidate your debt into one payment. If you’re bad at keeping track of payment cycles on your bills, no credit check personal loans could be the answer you’ve been waiting for.
5. You Can Get a Title Loan
A title loan is a fancy term for putting your car up as actual collateral. A bit different than some of these loans, the lender can put a lien on your car’s title — hence the name — and repossess it if you don’t pay your personal loans with no credit check.
If you have to pay off medical debt in a pinch through one of these loans and have bad credit, a title loan may not be a bad idea. You avoid a hard credit inquiry, and you can keep your car as long as you make payments on time.
6. Personal Loans with No Credit Check are Fast Money
While it’s not free money, it’s definitely fast money. Some reputable online lenders can have the cash you need to pay your medical bills in your account within a few business days. If you are in need of quick cash to pay your medical bills and have no other option, these loans can be useful in a time crunch.
You can apply online, through peer-to-peer lenders, or sometimes through a bank.
7. It’s Better Than A Credit Card
If you suffer from bad credit or no credit, a personal loan with no credit check could be a better option than trying to obtain a credit card to pay your medical bills. Most loans or credit cards require checking your credit score, and you may want to minimize hard queries into your FICO score.
Personal loans with no credit check provide just such an opportunity.
Pay Medical Bills with a Personal Loan
Personal loans no credit check are a way to take control of your finances. At Better Loan Blog, you can learn more about fixing bad credit, establishing credit when you have none, and other ways to contribute to your financial health.