Medical debt is the leading cause of bankruptcy in the United States, and unexpected medical bills can derail even the most careful financial plan. A personal loan can help you pay off medical bills immediately, often at a lower interest rate than medical payment plans or credit cards, and with a fixed monthly payment that fits your budget.
Should You Use a Personal Loan for Medical Bills?
Before taking out a personal loan, explore these options first: negotiate directly with the hospital for a discount (hospitals often reduce bills by 20–40% for self-pay patients), ask about the hospital's financial assistance program (most nonprofit hospitals are required to offer one), and check whether the provider offers 0% payment plans. If none of these options work or the balance is too large, a personal loan is often the best remaining option.
Best Personal Loans for Medical Bills
Upstart's AI model is ideal for medical borrowers who may have otherwise strong finances but a lower credit score. Accepts scores as low as 300. Fast funding — as soon as 1 business day. Typical APR 6.6%–35.99%, subject to change.
SoFi offers the lowest rates for good-credit borrowers with no fees. Unemployment protection included — payments paused if you lose your job while repaying. Best for larger medical bills.
Avant can fund loans as fast as the next business day. Good option for urgent medical bills when you need funds quickly. Accepts scores from 580.
Medical Loans vs Medical Credit Cards
CareCredit and Synchrony Health are medical-specific credit cards that often offer 0% APR promotional periods (6–24 months). If you can pay off the balance within the promotional period, these beat personal loans. However, if you carry a balance past the promotional period, the deferred interest kicks in at 26%–29% APR on the original balance — which can be devastating. Personal loans are safer for balances you cannot pay off quickly.
Find Your Best Rate in 2 Minutes
Answer 5 quick questions and see personalized loan offers matched to your credit profile — no credit pull required.
Check My Options →Frequently Asked Questions
Can I use a personal loan to pay medical bills?
Yes. Personal loans can be used for any purpose including medical bills. They typically offer lower rates than medical credit cards and provide a fixed repayment schedule.
What is the best loan for medical expenses?
For fair/poor credit, Upstart is the top pick (accepts scores as low as 300). For good credit, SoFi offers the best rates with no fees. For urgent needs, Avant can fund as fast as the next business day.
Should I negotiate my medical bill before taking out a loan?
Yes, always negotiate first. Hospitals often reduce bills by 20–40% for self-pay patients, and most nonprofit hospitals have financial assistance programs. Only take out a loan for the amount you cannot reduce or eliminate through negotiation.
Does medical debt affect my credit score?
Medical debt that goes to collections can appear on your credit report and significantly damage your score. However, as of 2023, paid medical collections are no longer included in credit reports, and unpaid medical collections under $500 are also excluded.