Should I Get a Cash Advance to Cover My Medical Bill?
Medical bills can be expensive, ranging from a few hundred to several thousand dollars or more. Even if you have insurance, you might pay for some of your medical bills out of pocket.
If you don’t quite have the cash to cover an urgent medical bill, a cash advance may work as a solution.
This article will explain the benefits of cash advance loans for covering medical bills and dive into a few alternatives.
Why a Cash Advance Could Be a Good Way to Cover Your Medical Bills
Here are a few reasons why that a cash advance loan could help you cover your medical bills:
1. Simple Application
Cash advance applications only take a few minutes to fill out. You’ll need to provide some personal and financial details such as proof of income and employment. To prove these, you’ll usually only need to provide documents like a pay stub
Besides that, you’ll just need to provide basic information about yourself and a post-dated check or banking details for repayment.
Thanks to this simplicity, it’s easy to get the funds you need for medical bills.
2. Same-Day Funding
Many cash advance lenders can provide you funding on the same day you apply once you accept the terms. They’ll either cut you a check, provide cash, or send the funds to your bank account.
This is especially helpful if your medical bill is due soon. You won’t have to worry about missing the payment deadline and facing the consequences.
3. Less Strict Credit Requirements
Many cash advance lenders don’t only look at your credit. They may also consider additional factors like your income, employment history, and debts to make a lending decision.
That way, people with poor credit scores or no credit history can access the funds they need to cover expensive medical bills.
Cash Advance Alternatives for Medical Bills
Cash advance loans can work great for some medical bills. But if another loan may be better suited for your needs, here are some cash advance alternatives to consider:
1. Installment Loans
Installment loans let you borrow a larger amount of money and repay what you owe in fixed monthly payments of principal and interest. They tend to offer lower rates than many other loan types.
The low rates, large amounts, and predictable payments make installment loans a great option for larger medical bills. You can spread the cost over many months with predictable and affordable payments.
2. Line of Credit
A line of credit lets you borrow as much as you need up to a specified credit limit and repay when you can. Interest is charged on and added to any outstanding balances. These tend to offer high credit limits, giving you room to borrow a lot.
As a result, lines of credit can help if you have unpredictable medical costs or need to visit medical providers more often. Every time you receive a bill, you can tap into your line of credit.
3. Pawn Shop Loans
Pawn shops let you borrow against nearly any item without a credit check through pawn shop loans.
The pawnbroker will appraise your item and offer you a loan amount and terms. You then give them your item and receive the funds and a claim ticket.
These loans are often due in 30 days, with a 30-day grace period. When the loan’s due, you’ll exchange the loan amount plus fees and your claim ticket for your item.
Some pawn shops let you roll over the loan for another fee. Otherwise, the pawn shop gets your item if you can’t repay the loan. However, there are no extra fees, and you don’t risk credit damage.
The Verdict: Should You Get a Cash Advance to Cover Your Medical Bill?
Cash advances are great options for covering smaller medical bills. They offer simple applications and fast funding with less strict eligibility criteria.
But these loans may not work in all situations.
For larger medical bills, you may want to consider installment loans for their significant loan amounts, lower rates, and predictable payments. If you visit a medical provider often, look instead at a line of credit to cover unpredictable expenses.
Finally, pawn loans could work well for medical bills if you have items you’re willing to risk losing your collateral and aren’t sure if you can pay back your loan.
Ultimately, you’ll want to carefully evaluate the total cost of your medical bill and your circumstances to determine which loan type is right for you.
Finally, if you’re struggling to pay your medical bills, get in touch with the hospital or medical facility that provided the services. In some cases, they may be able to offer you a payment plan or even a discount.