There are several specific reasons why many people are often in need of a quality short-term loan, and one of the most common and vital examples here is for a medical concern. Whether for a procedure, specialized care or any other medical bill, it’s common in the US for even those with health insurance to have large bills that are not fully covered – and medical loans are a vital tool available to help cover these needs.

At 1st Choice Money Center, we’re here to offer a wide range of short-term loans to clients around Utah, Idaho, Delaware and Missouri, including medical loans meant to assist those with no insurance, or whose insurance did not entirely cover their medical bills for any reason. In this multi-part blog series, we’ll go over why many Americans have significant medical debts that insurance does not cover, plus the role medical loans play in filling this gap, and some important considerations if you’re looking into such a loan.

Why Many Americans Have Medical Bills

As unfortunate as it is, there are several reasons why many Americans end up with large medical bills that are not fully covered by insurance. Some of the most common include:

• High deductibles: Many health insurance plans have high deductibles, meaning individuals are responsible for a significant portion of their own healthcare costs before insurance kicks in.
• Out-of-network care: In some cases, individuals may need to see a specialist or receive medical care outside of their insurance network, resulting in higher out-of-pocket costs.
• Non-covered procedures: Some procedures or treatments may not be covered by insurance at all, leaving individuals to foot the entire bill.
• Unexpected accidents or illnesses: No one plans for an accident or illness, but when it happens, it can result in unexpected and costly medical bills.
• No insurance: Sadly, not everyone has access to health insurance, leaving them responsible for all of their medical expenses.

The Role of Medical Loans

When faced with a large and unexpected medical bill, many individuals turn to medical loans as a solution. These loans can provide immediate funds to cover the cost of medical care, allowing individuals to pay off their debt over time in manageable installments. This can help prevent financial strain and allow individuals to prioritize their health without worrying about the immediate burden of a large medical bill.

How Medical Loans Work

If you’re unfamiliar with medical loans, there are a few key things to know. These loans typically have lower interest rates and longer repayment terms compared to traditional personal loans, making them a more affordable option for covering medical expenses. They can be obtained from banks, credit unions or online lenders like 1st Choice Money Center.

To qualify for a medical loan, you will need to provide proof of income and have a good credit score. Some lenders may also require a co-signer or collateral, depending on the loan amount.

In parts two and three of our series, we’ll look at some of the main advantages and potential drawbacks of medical loans, as well as important considerations before taking out this type of loan. At 1st Choice Money Center, we’re dedicated to providing transparent and affordable financial solutions for our clients, including medical loans and other options like personal loans, car title loans and more. Stay tuned for the next installment in our blog series!