Wondering how you can get a dental loan with bad credit, or if it’s even possible? According to the U.S. Department of Labor, prices for dental services continue to rise.
The cost of dental procedures can quickly add up to hundreds to thousands of dollars which can be difficult to afford out-of-pocket, especially when unexpected. Further, with bad credit, it’s more challenging to borrow the money you need.
However, you do still have a few potential options. Here’s a quick guide that includes five ways to qualify for dental loans with bad credit. Read this article if you are looking for dental loans that don’t require a credit check.
How can I get a loan for dental work with bad credit?
There are several ways to get a loan for dental work. You could apply with your dentist, look for a third-party personal loan lender, take out some of the equity in your home, or use a credit card.
While your selection of lenders will be slimmer if you have bad credit, they do exist. Here are five ways to get a loan for dental work when your credit is not the best.
1. Personal loans
One way to get a dental loan is by shopping around for personal loans. There is a wide range of loans from those that are secured and offered by a payday or auto title loan to those that are unsecured and based on your credit.
Many payday lenders and auto title lenders only offer small, short-term loans with very high costs. Therefore, these should generally be a last resort and only if you can meet the repayment terms along with your regular finances.
On the other hand, unsecured personal loans are a good option to consider. Many lenders have cropped up in the past few years creating a competitive market that caters to different audiences, including people with not-so-great credit.
2. A local dentist with payment plans
The next route is to check with local dentists. Most dental practices will have a few payment plans available to customers. These vary from in-house offers to partnerships with third-party dental financing companies (some that don’t require a credit check and don’t charge interest). It’s worth calling a few dentists in your area to see what options are available.
Learn about dental loans with no credit check.
3. Credit cards
Credit cards may also be an option for you. Each credit card provider will have different eligibility requirements. While some require a credit score above 700, others allow scores as low as 550.
The downside is, the lower your credit, the higher the interest charges, so be aware of how much it will cost you (in total) to finance the dental costs.
Many people also ask, “What is the dental CareCredit card?” It’s a credit card designed to pay for healthcare and wellness.
How does it work? The dental care provider you choose needs to be enrolled with CareCredit. Then, you can use the card to pay for your expenses. Over 200,000 healthcare providers have already enrolled in the U.S.
The big benefit is you don’t have to pay interest on shorter-term financing terms of 6, 12, 18, or 24 months. But can you get CareCredit with bad credit? It’s worth applying to find out and, if you get denied, co-signers are accepted.
A final tip on credit cards: look for a no-interest introductory period. With these cards, you can carry a balance for the promotional period and pay it off without paying interest. However, be aware that when the period ends, the interest rate will jump up. Being so, you’ll want to ensure you can pay off the balance in time.
Check out our Personal Credit Card Review page to compare a list of top cards including their annual fees, credit score requirements, rewards, and more.
4. Home equity loans and HELOCs
Do you own your house and have some equity in it? If so, you might want to consider tapping into it to cover your dental costs. Home equity loans and lines of credit (HELOC) enable you to borrow against the equity in your home. They are a good choice if you’re credit is bad, because your house secures the loan. However, that can also be a drawback as your house will be on the line if you default on your loan.
5. Borrow from your 401k
Lastly, you can borrow from your 401k to pay for your dental costs. In many cases, a credit check is not required as your savings secure the loan. Further, the payments will often come out of your paychecks.
Interest rates are typically low going this route, and you can usually borrow half of the amount in your account. Check with the provider that manages your 401k to find out the details of your account.
How much will you need to borrow?
The cost of dental care and procedures will vary depending on the location, skill level, and quality of the dentist. The graphs below show the average costs of dental services according to two sources.
Learn more about the average dental costs and the factors that influence them.
FInd the right dental loan for you, even with bad credit
While bad credit does require you to get more creative when finding a dental loan, you still have options. Now you know five ways people with bad credit may be able to qualify for a loan that can be used to pay for dental costs. These can help you to prevent a bad problem from getting worse.
Barnard says, “Even ignoring the bi-annual cleaning and checkup can turn small issues into larger ones, requiring more expensive treatment.” Be proactive, weigh the total costs, benefits, and drawbacks of each loan type to find the one that is best for your situation.
Ready to start shopping around? Head over to our personal loan offer engine to find out what you qualify for today!