While bariatric surgery might have the power to alleviate health concerns, return mobility, and enhance your lifestyle by helping you lose weight, it’s often considered a non-starter for those without health insurance that covers weight-loss procedures or who lack any heath insurance coverage at all. Take note of these best options for personal loans for funding of your bariatric surgery.
What Is a Personal Loan?
A personal loan is borrowing that you pursue for personal use, as the name suggests. This lending will be either secured or unsecured, meaning that you either secure the loan with collateral as backing, or you gain the money based upon qualifying factors and your promise to repay. Both of these types of personal lending are appropriate for funding your bariatric surgery.
The types of unsecured personal loans are many, as are the sources for them. Since the borrowing isn’t supported by collateral, the interest rates for these loans are usually higher than those of secured loans, but the rates are lower than those of most credit cards.
A few companies that offer online remedies include UpStart, LendingPoint, LendingClub, and Earnest. You might also visit your hometown bank or credit union for a personal loan to fund your bariatric surgery.
Deciding which unsecured personal loan is right for you should include a consideration of any origination fees, the amount of time provided for repayment, and the APR for the loan.
The origination fee is the amount that lenders charge for establishing and processing the loan. They’re usually a percentage of the amount borrowed and may be higher or lower based upon your credit score, credit history, and length of repayment scheduled.
Your origination fee may be as low as 1% or as high as 6% of what’s borrowed. In many cases, the lender will subtract the origination fee from the loan amount, so you won’t even get the entire amount that you borrow. Some lenders, however, don’t charge these fees. A few examples include SoFi, Earnest, and Barclays.
Term of Repayment
The amount of time designated for repayment is referred to as the loan term. The shorter the period of repayment, the higher the monthly installment. While you’ll pay far less interest with a short-term loan, the payments will likely be entirely too high to be considered affordable. The personal loan you take out for your bariatric surgery should have the shortest term possible and still be confident that you can make the monthly payment.
Annual Percentage Rates, APR
The APR of your personal loan is the total interest rate of a loan over a year’s time. The APR of your loan depends on the credit score you have, and this interest rate is the cost you’ll pay to borrow the money. This number is the most important factor to consider as you compare personal loans.
Consider a Few of the Lenders in the Market of Personal Lending
Those who have a minimal credit history can find an avenue of funds with UpStart. This lender looks at more than credit score. It also evaluates your education background, area of study, job history, and credit history in order to determine your credit worthiness based upon your past, present, and your future. APRs range from 4.68 to 35.99%, and you can borrow anywhere from $1,000 to $50,000. You can choose between a 3-year or a 5-year term and will not face a penalty fee if you’re smart enough to pay off the loan earlier than anticipated.
With LendingPoint, you can borrow up to $25,000 to fund your much-needed bariatric surgery. Even with credit scores as low as 585, this lender looks beyond the number and considers other factors of credit worthiness. No prepayment penalty and a quick decision one way or another are both other reasons to choose this option to fund your bariatric procedure.
At LendingClub, you can quickly establish your rate depending on the amount that you need to borrow and your credit score. The company offers personal loans up to $40,000 in addition to other financial products and services, including patient specific payment arrangements. You’ll have a set monthly payment arrangement based upon a fixed, low interest rate.
Earnest offers lending for qualified borrowers with APRs that start at 6.99% with loans up to $75,000. Qualifying elements that this lender considers include projected future earnings as well as payment history and education, considering the whole of a person rather than a strict set of numbers and details.
A secured loan for your bariatric surgery is one that’s backed by security, or collateral. The collateral might be your home, car, life insurance policy, 401k, or another valuable asset. While this type of loan will have a lower interest rate, it’s important to bear in mind that you stand to lose the asset in question should you fail to pay back what you’ve borrowed.
You’ll still need to verify relevant information concerning credit worthiness including credit score, income, credit history, employment, and other assets. These loans will usually have a fixed term, a fixed interest rate, and a fixed amount borrowed.
Other ideas for financing your bariatric procedure include:
- Loans or gifts from family members or friends
- Liquidating assets
- Tax return
- HSA or FSA
- Credit cards
- Line of credit
- Payment arrangements with facility
Travel to Mexico for Surgery
If taking out a personal loan for $20,000 is still out of bounds for your pocketbook, consider traveling to Mexico for your bariatric surgery. You can secure one of the best personal loans for bariatric surgery and repay it with confidence since the required amount will be so much less. This plan might seem extreme to you, but look into it. It’s become quite common to see Americans travel to Mexico for bariatric surgery because it’s no less effective or less safe. However you ultimately decide to finance your bariatric surgery, do so with the determination to follow the guidelines for after-care and change your life for the better!