Over 12.6 million plastic surgeries were performed in the United States in 2016 alone. People want to look good, they want a body they can be proud of; they want to cover up scars from accidents, operations, cancer treatments; and they are willing to pay a premium to do so. Over $16 billion was spent on different cosmetic and plastic surgery procedures in 2016.
For credit-challenged people, i.e. FICO scores below 550, the story is different. Cosmetic and plastic surgeries cost a lot of money and people with less-than-perfect credit struggle to get financing to undergo the procedures that they want or need. However, all hope is not lost. If you have less-than-perfect credit, and as a result, you’ve been unable to secure plastic surgery financing, here are 7 brilliant options to consider:
1. Health Insurance
If you have health insurance, you may not need to pay the total cost of the surgery from your pocket. As long as the procedure you want to undergo is medically justifiable, then insurance may cover most if not all of it. For example, a nose job to correct breathing difficulty, eyelid surgery for victims of fires or accidents, a breast reduction surgery to ease severe back pain, etc. Cosmetic procedures undergone primarily to improve ones’ appearance or boost self-confidence are not, however, typically covered by insurance.
2. A 401(k) Loan
People who have contributed to an employer-sponsored retirement account may be able to borrow from it to pay for cosmetic or plastic surgery. For people with less-than-perfect credit, a 401(k) loan is one of the few loans with manageable interest rates.
As with health insurance above, however, you may not be able get a 401(k) loan for purely elective cosmetic procedures. If you require surgery to correct a birth defect, a genetic anomaly, or a disfigurement caused by disease/accident, check your plan documents or reach out to your retirement account administrator to get details about your account’s available loans.
3. Home Equity Loan
Homeowners with accumulated equity may be able to take out a second mortgage on their property. The biggest consideration for creditors is collateral rather than the applicant’s credit. If you can leverage your home as collateral, then your credit may not be much of a hindrance.
Home equity loans generally have fair interest rates, and the loan can be used for either medically necessary or elective plastic and cosmetic surgeries. Please note, however, that should you default on loan payments, you stand the risk of losing your home.
4. Personal Loans
Some local banks and credit unions offer loans to borrowers with less-than-perfect credit, and the loan can be used for any purpose. The creditors, however, cover their risk by charging fixed interest rates that may be as high as 36%, depending on the applicant’s credit. Credit unions only give out personal loans to members.
Personal loans often have long repayment schedules, and while this reduces your monthly payments, it may take over 5 years to repay the loan. In the end, you will end up paying well over double the original loan amount.
5. Hospital Payment Plans
Some hospitals and outpatient surgery facilities offer payment plans to patients. This basically allows you to put down an initial lump sum, then pay off the rest of your bill over time. However, facilities that offer this option are limited and most require a good credit score. Applicants with less-than-perfect credit often need to put down additional collateral and agree to higher interest rates on the loans.
6. Online Lenders
There are hundreds of online lenders that offer loans to applicants with less-than-perfect credit. However, loan amounts tend to be smaller and the terms of the loan are almost always unfair if not exploitative to the borrower. Payday loans are the most common, but these have astronomical interest rates; between 100 – 350%.
These are general purpose loans and can be used for either medically necessary or elective plastic and cosmetic surgeries. However, it is imperative that payments are made on time and the balance paid off as agreed. Failure to do so comes with steep penalties and more damage to your credit.
7. United Medical Credit
United Medical Credit provides a breath of fresh air to people with less-than-perfect credit seeking cosmetic or plastic surgery financing. Loans can be used for virtually all cosmetic and plastic surgery procedures such as facelifts, facial reconstructive surgery, liposuction, nose surgeries, breast augmentation or reductions, hair restoration and many more. Because United Medical Credit works with multiple lenders, applicants have a wide range of loan terms to choose from. United Medical Credit offers loans up to $35,000 with competitive interest rates and affordable monthly payments.
You may have less-than-perfect credit, however, that doesn’t have to preclude you from getting the cosmetic or plastic surgery procedure you want or need. Millions of Americans are doing what they can to look and feel their best. Why not you?
Instead of putting your home, retirement account, or financial well-being on the line just to secure a loan, why not reach out to United Medical Credit to learn more about your cosmetic and plastic surgery financing options?