Medical Loans: Best Rates in 2026
Estimate your medical loan rates and approval odds before you apply
- Medical loans are just personal loans used for health care expenses.
- A health provider payment plan or 0% APR credit card may be a better choice than a medical loan.
- Medical loan debt can appear on your credit report, but bills you owe to your health provider often don’t.
- Check average rates and estimate your loan payment with LendingTree marketplace data.
What is a medical loan and how does it work?
A medical loan is a personal loan that you use for medical expenses. If you’ve never gotten a personal or medical loan before, here’s what you need to know:
- How it works: If approved, your loan amount (minus any fees) will be deposited directly into your bank account.
- Repayment: You’ll pay back your loan, plus interest and fees (measured by APR) in fixed, equal monthly payments for the length of your loan.
- Alternatives: Provider payment plans can be better than medical loans because they’re treated as medical debt, which is less likely to affect your credit. If your provider doesn’t offer one and you have excellent credit, a medical loan may cost less than a credit card.
- What it’s for: You can use a medical loan for your medical insurance deductible and for most health care bills, even those for dental work, fertility treatments and cosmetic surgery.
Learn more about how medical loans work.
More than half of Americans have taken on medical debt in the past, and 1 in 10 did so in 2025 alone, according to LendingTree research. While it’s still common for medical debt to go into collections, acting early can help you manage costs. Consider taking these steps before you borrow:
1. Check your coverage. Review your explanation of benefits (EOB) and talk to a rep at your insurance company to make sure you’ve made the most of your coverage.
2. Talk to your doctor. Confirm the cost of treatment and ask about payment plans or financial assistance.
3. Explore your options. Estimate the potential cost of your medical loan and medical loan alternatives before committing to a plan.
Do medical bills affect your credit?
Yes, unpaid medical bills can affect your credit score, but you have protections.
Medical debt is money you owe directly to your health care provider. The three major credit bureaus no longer include the following in your credit report:
- Paid medical debt
- Medical collections under $500
There’s also a one-year waiting period before medical debt in collections appears on your credit report.
Medical loan debt is different. Once you use a medical loan to pay for medical expenses, it’s treated like any other personal loan. If it goes into default, the negative mark can stay on your credit report for up to seven years.
How to negotiate medical bills
Medical bills aren’t always set in stone — negotiating can help you save money or spread out payments over time. Here’s how to negotiate with your provider and insurance company.
- Review coverage in your insurance manual. Find the section in your manual that explains how much your insurance covers for the medical treatment in question. Call your insurance provider if you believe you’re owed more money, and refer to the relevant section in the manual.
- Ask your provider for an itemized bill. Review the bill line by line, and ask your provider about any charges or fees you don’t recognize or understand.
- Ask about charity care and payment plans. Hospitals provide financial assistance called charity care to eligible patients, and many providers offer interest-free repayment plans. Ask your provider about both, and don’t be afraid to say that you can’t afford the bill. Being honest about your financial position can help you get the assistance you need.
I’ve spent years discussing medical bills with medical providers and insurance companies for a family member’s ongoing care. You’re more likely to successfully negotiate a bill when you calmly and politely explain your situation, then ask for options. Sometimes it takes more than one call — persistence is key.
Can you get a medical loan with bad credit?
Yes, it’s possible to get a bad credit medical loan, but you’ll likely pay more for it than someone with good credit would. Bad credit loans come with higher rates that make them more expensive.
To see where you stand, check your credit score for free with LendingTree Spring. If you need a medical loan for bad credit but the payments feel out of reach, consider adding a co-borrower or collateral to help you qualify for a lower rate.
A co-borrower is a second person who is equally responsible for paying off your loan. Adding a co-borrower can help lower your rates and save you money. Keep in mind that both your and your co-borrower’s credit will take a hit if you fall behind on your payments.
A secured loan comes with lower rates, but it requires collateral like your car or savings account. Since the lender can keep your collateral if you stop making payments, secured loans can be cheaper and easier to get.
You can have great health insurance and still end up with medical debt. Here are some ways you can shave down your out-of-pocket medical expenses:
Check for billing errors. According to the most recent data from the Centers for Medicare & Medicaid Services (CMS), 6.55% of Medicare payments are coded incorrectly, leading to nearly $29 billion in improper payments.
Know what’s covered. For instance, before you buy a medical device, find out if your insurance will pay for it. If your insurance doesn’t cover it, consider renting the equipment instead of buying.
Stay in network. Medical costs like deductibles and out-of-pocket expenses are more expensive when you go out of network.
Medical loan rates
Use the average personal loan rates for LendingTree marketplace users to estimate the medical loan rates you could qualify for based on your credit score.
Personal loan rates by credit tier
| Credit tier | Average APR |
|---|---|
| Excellent (800 and above) | 15.75% |
| Very good (740-799) | 17.89% |
| Good (670-739) | 23.27% |
| Fair (580-669) | 27.79% |
| Poor (under 580) | 30.25% |
See how much you’ll pay for your medical loan
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Best medical loan lenders with the lowest rates
Here are some good medical loan options for different situations. (See below how we chose the best medical loans.)
Best for: Big medical loans – BHG Financial
- APR
- 9.95% to 35.99%
- Can borrow up to $25,000
- Allows up to 48 months to repay
- Accepts less-than-perfect credit
- May not work for smaller medical loans due to higher loan amounts
- Loan may come with an origination fee
- Can take up to five days to get your money
If you’re looking for medical loans for a big medical expense, consider Avant. This lender offers large loans and long repayment terms to match.
A long repayment term can make a big loan more affordable because monthly payments are typically lower. In exchange, you’ll pay more total interest.
Although this lender accepts fair credit, you won’t qualify for BHG’s biggest loans if you don’t have excellent credit. BHG may also charge you an origination fee, typically a percentage of your loan amount. That means the more you borrow, the bigger this fee will be.
To get a loan from Avant, you’ll need to meet the following requirements:
- Administrative: Have a Social Security number and email address
- Credit score: +
Avant’s average personal loan borrower has a score of 740 and an annual income of $213,000. Not all of Avant’s loans, loan amounts, rates or terms are available in all states.
Best for: No fees – LightStream
- APR
- 11.39% to 25.29%
- No fees
- Has rate-matching program
- Offers same-day loans
- Must have good to excellent credit
- Loans start at $5,000, which may be more than you need
- No preapprovals
LightStream offers online loans with no fees. It also has a rate-matching program called Rate Beat. If you get a better rate while you’re shopping around, LightStream might beat it by 0.10 percentage points.
Because of this, you may want to apply for a few other loans directly after accepting LightStream ’s loan — try to do all the applications within 14 days so the hard-pull credit checks have the least impact on your credit score.
If another company gives you a better rate, don’t accept it right away. Instead, send that loan offer to LightStream at least two days before it sends you your money. If the competitor’s offer qualifies, LightStream will beat its rate.
It’s worth noting that LightStream doesn’t have preapprovals or prequalifications for its loans.
LightStream doesn’t specify its exact credit score requirements, but you must have good to excellent credit to qualify. Most of the applicants that LightStream approves have the following in common:
- At least five years of on-time payments on a variety of accounts (credit cards, auto loans, etc.)
- Stable income and can handle paying their current debt obligations
- Savings, whether in a bank account, investment account or retirement account
Best for: Easier approvals with collateral – Upgrade
- APR
- 7.99% to 35.99%
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 7.99%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade’s bank partners. Information on Upgrade’s bank partners can be found at https://www.upgrade.com/bank-partners/.
- Option to use collateral to help get approved or snag a lower rate
- Can add a second person to your loan
- Can change your due date online or over the phone
- May find a lower rate with another lender if you have excellent credit
- All loans have an origination fee
- Can qualify with fair credit, but rate will be high
Personal loan platform Upgrade offers both secured and unsecured loans. A secured loan requires collateral. With Upgrade , collateral is your car or, for eligible homeowners, your built-in cabinetry and light fixtures.
Collateral can help make it easier to get approved or to get a lower rate, since it lowers the risk for the lender. If you fall too far behind, Upgrade can make up some of its losses by repossessing your collateral.
Collateral or not, Upgrade isn’t typically the cheapest for those with excellent credit. Its minimum APR is 7.99%, and it charges an origination fee of 1.85%-9.99% on every loan. Many lenders waive this fee if you have excellent credit.
To qualify for a loan through Upgrade , you must meet the requirements below:
- Age: Be at least 18 (19 in some states)
- Citizenship: Be a U.S. citizen or permanent resident, or live in the U.S. with a valid visa
- Administrative: Have a valid bank account and email address
- Credit score: 580+
Best for: Bad credit medical loans – Upstart
- APR
- 7.23% to 24.00%
The full range of available rates varies by state. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 21.58% and a 9.84% origination fee of $984, for an APR of 26.82%. In this example, the borrower will receive $9016 and will make 60 monthly payments of $275. APR is calculated based on 5-year rates offered in December 2023. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
QA Test
- Accepts bad credit
- May not need credit to qualify
- Also has low rates for excellent credit
- Can’t apply with a second person
- If you qualify with bad credit, you could get a rate as high as 24.00%
- Only two choices of repayment terms (12 to 84 months)
Upstart could be perfect if you have bad or no credit. Upstart is a lending platform, and some of the lenders it partners with accept lower scores or don’t have a minimum credit score at all.
Getting a medical loan with bad credit has its downsides. Between higher rates and origination fees, borrowing will be expensive. Be sure to have a plan to pay back what you borrow before signing your loan agreement.
Upstart has transparent eligibility requirements, including:
- Age: Be 18 or older
- Administrative: Have a U.S. address, personal banking account, email address and Social Security number
- Income: Have a valid source of income, including a job, job offer or other regular income source
- Credit-related factors: No bankruptcies within the last three years, reasonable number of recent inquiries on your credit report and no current delinquencies
- Credit score: No formal minimum requirement
Read more about how we made our picks for best medical loans.
Medical loan pros and cons
There are a lot of ways to pay for medical expenses. Considering the pros and cons of using a medical loan can help you decide if it’s the right next step.
Pros
- Interest doesn’t rack up as quickly as it would on a credit card.
- Rates are usually lower than those for cards if you have excellent credit.
- Loans can be easier to budget for, since monthly payments stay the same.
Cons
- Loans aren’t a great option if you don’t know how much your medical bills will be.
- They can come with origination fees.
- Loans don’t have rewards or promotions like some credit cards do.
Medical loan alternatives (including credit cards and payment plans)
Medical loans can be a great option when your doctor doesn’t offer payment plans, but other options make more sense if you have a chronic condition or don’t know how much care will cost. Consider the alternatives before moving forward.
In-house financing
Best if your health provider has their own medical financing
Call your doctor’s or hospital’s billing department to see if you can negotiate a no-interest medical debt payment plan. Low- and no-interest provider payment plans will likely be cheaper than a loan and may come with credit protections.
Medical financial assistance
Best if you need hospital care but have low income or no insurance
The Affordable Care Act requires all nonprofit hospitals to offer financial assistance to people who qualify (typically by having low income). This is called charity care. Each hospital sets its own eligibility requirements.
Your hospital’s billing department or a social worker can help you navigate charity care.
0% APR intro credit card
Best for ongoing expenses if you have strong credit and can pay off the card quickly.
You can borrow from a 0% intro APR credit card over and over again, which is great for ongoing medical expenses. If you can manage to pay off charges in the interest-free introductory period (typically a year or more), you won’t owe extra money beyond the cost of your medical treatment. You’ll likely need good or excellent credit to qualify for a 0% APR card.
Credit cards
Best for smaller ongoing medical expenses that you can pay off soon
If you have a chronic condition that requires smaller, recurring payments — and you can pay charges off quickly — a regular credit card could be a good bet. If you can manage it, pay off your card before your monthly statement to avoid paying interest on your medical charges.
Ask the expert: When would you choose a medical loan over a credit card?
If I needed years to repay, I’d choose a medical loan over a credit card. A 0% intro APR card would only make sense if I could pay it off within the promo period.
I’d never carry a large balance on a traditional card — compounding interest makes debt balloon fast.
Why use LendingTree?
$3.2B in funding
In 2025 alone, LendingTree helped find $3.2 billion in funding for people seeking personal loans.
$1,659 in savings
LendingTree users save $1,659 on average just by shopping and comparing rates.
360,000+ loans
In 2025, LendingTree helped find funding for over 360,000 personal loans.
How we chose the best medical loans
We reviewed more than 40 lenders and loan marketplaces to determine the overall best six medical loans. To make this list, the company must offer personal loans for medical expenses.
From there, we assessed each lender or marketplace across four categories: eligibility and access; cost to borrow; loan terms and options; repayment support and tools.
According to our systematic rating and review process, the best medical loans come from Avant, , LightStream , , Upgrade and Upstart .
Our categories
We assess how easy it is for people to qualify and apply. This includes state availability, soft-credit prequalification, membership requirements, funding speed and whether borrowers with less-than-excellent credit can get a loan.
We evaluate how affordable the loans are based on minimum and maximum APRs, loan fees and rate discounts. Lenders with unclear or potentially predatory costs receive lower scores.
We consider repayment term flexibility, loan amount ranges, and whether options like secured loans, joint loans or direct-to-creditor payments are offered — plus whether the lender clearly communicates these options.
We evaluate borrower experience after funding: customer service access, hardship or forbearance programs, payment flexibility, and digital tools like mobile apps or credit monitoring.
Our process
We gather data directly from lenders through their websites, disclosures and direct communication with company representatives. Our editorial team verifies and updates information regularly. We value transparency and award less favorable scores when lenders obscure or omit details.
Our editorial team applies the same scoring model and standards to every lender. Lenders cannot pay to influence our ratings. Read more about our editorial guidelines.
Why trust LendingTree’s methodology?
Our writers and editors dig through the facts, contact lenders directly and even go through the application process ourselves if it helps better explain what you can expect. As a Certified Financial Education Instructor℠, I’m committed to breaking down complex financial details so people can make confident, informed decisions with their money.
Jessica’s experience in editing and financial education helps shape LendingTree articles that are clear, accurate and truly useful to readers. Her certification means our recommendations are built on a foundation of consumer-first financial knowledge — not just numbers.
Frequently asked questions
Funds from a medical loan come as a lump sum, directly from the lender, and you use this money to pay your medical debt.
Some lenders charge an origination fee, usually a percentage of what you borrowed. The lender typically takes your origination fee out of your loan before sending it to you, so you might need to borrow more to make up for the difference.
You’ll pay what you owe each month, including principal (what you actually borrowed) plus interest and fees, which are worked into your monthly payments. The term varies from loan to loan, but you usually get one to five (or more) years to pay off a personal loan.
You usually need a credit score of at least 670 to get competitive rates on a medical loan, but that doesn’t mean you can’t qualify with a lower score. Each lender sets its own requirements.
When you have excellent credit, you have a good chance of getting a lender’s lowest rates, but even then it’s best to shop around. You can use the LendingTree network — the largest online lending marketplace in the country — to avoid filling out multiple lending forms one by one.
When it comes to credit scores, most medical loan lenders require at least fair credit (580+) to qualify, and good credit (670+) to get the cheaper rates. You could expect a lender’s best rates with excellent credit (740+), but it also depends on other factors like your income and credit history.
You can still qualify for a medical loan with a lower score, but the interest rates may be high. Many financial experts say that a loan with an annual percentage rate (APR) above 36% can be considered predatory lending.
You can use a medical loan for most medical expenses, such as health care bills, copays and deductibles. This also includes in vitro fertilization (IVF), dental work, LASIK eye surgery and even elective plastic surgery.