What Is a Secured Medical Loan?
A secured medical loan is a form of financing for medical procedures that requires the borrower to place possessions as collateral to secure the loan. Placing collateral can expedite the loan approval process and may be the only choice for borrowers with poor credit histories.
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Function
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A secured medical loan may be used to pay for for emergency procedures, dental procedures or cosmetic procedures. Some financing is offered directly through clinics and doctors, while other loans are available online.
Benefits
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A secured loan can get you the money you need quickly before small health concerns become catastrophic problems.
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Considerations
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If you fail to repay your loan in a timely manner, the possessions placed as collateral will be seized by the lender.
Benefits
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If you require an emergency procedure and a secured loan is the only choice, it is best to push forward with the loan. However, if you are considering a secured loan for cosmetic or other elective surgery, think twice before signing the paperwork--you could lose collateral if you default on the loan.
Warning
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Failure to make the minimum payment on your secured medical loan can result in negative information being placed on your credit report. If you think you may have difficulty repaying the loan, contact the lender before your account is placed in collections or your collateral is seized.
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