Bad credit shouldn’t stand in the way of your life. Returning to a healthy weight can reverse diseases like Type II diabetes, allow you to breathe while walking through the mall or for exercise, and let you go through life confidently. You deserve this return to health, and when diet and exercise fail time after time, bariatric surgery can be the answer. If you’re wondering if it is possible to get bariatric surgery financing with bad credit, take note of these potential solutions to your problem.
What Is a Bad Credit Score?
Knowing if your credit is bad enough to present an obstacle to your bariatric surgery financing should be your first step. Usually, a score under 600, or even 620, is considered bad enough to prevent lending.
Upstart, for example, requires a minimum score of 620 and has an average APR of 20% for a 3-year term.
Earnest requires a minimum score of 680, and the rates on a 3-year term range from 6.99-14.99%.
LendingClub’s average rate is 11.43% on a 3-year loan, and the minimum credit score required is 640.
Lastly, LendingPoint requires a minimum credit score of 580 and has an APR between 15.49%-35.99%.
If bad credit is preventing you from financing your weight loss surgery, fix your credit. While this solution seems like magical, fairy-tale thinking, it’s actually quite doable. Take the time to pull your credit report, and you’ll likely be surprised by the negative reports that can pull down your score. Some of these will probably be mistakes, in fact, and disputing them online can have a positive impact on your score.
You can also pay off some of the smaller amounts, and closing collections accounts or achieving a zero balance on credit cards or loans can significantly raise your credit score. This approach is long-term in nature, and for a faster journey toward your bariatric surgery, you might want to consider alternative financing options.
Bad credit is prevalent in modern society, and out of this abundance has grown an entire lane of financing geared toward those with bad credit scores. This source of lending may not be ideal; interest rates might be higher than you like. When your health is at stake, repaying more for the money you’ve borrowed will be well worth it. You’ll find it far easier to pay off your loan when you enjoy better health and more confidence following your weight loss.
When your credit is bad and you need bariatric surgery, taking a loan out with an asset as security can be beneficial. From a Home Equity Loan to a personal loan or borrowing from your 401k, this option can provide the much-needed cash to fund your surgery. You must be aware, however, that you risk losing the asset in the unfortunate event of failure to repay the loan according to the agreed upon terms. You could also have high interest rates since your credit score is low, but being able to demonstrate a higher level income can mitigate your score some.
Alternative Funding Sources
If your bad credit limits your ability to access the funds needed for your weight-loss surgery, finding alternative sources of funding can be helpful.
Available avenues could include:
- A gift or loan from family members and friends
- Crowdfunding through GoFundMe or similar outlet
- Liquidating an unused asset or heirloom
- Fundraising measures like car washes, bake sales, or even auctions
When you decide to take the step of pursuing bariatric surgery and discover that you will likely have a difficult time financing the procedure, alert your family and friends. You’ll probably discover that the community will rally. Their concern for your health and happiness will lead to loads of love, support, and contributions.
Financing your bariatric surgery with bad credit is possible, but it might be difficult. Lenders abound who are ready and willing to loan money to those whose scores might limit their ability to otherwise achieve financing. Whether you take out a personal loan, secure a loan through your assets, or find another source of funding, do not allow bad credit to hold you back from gaining your freedom from obesity. You can take back your health and your life by gaining the funding to have effective and safe weight-loss surgery, and you should take all necessary steps to see that it happens.