Paying for medical care isn’t always straightforward. Even when insurance is involved, patients are often surprised by how much they’re expected to pay up front. When a bill feels too large to handle all at once, the question quickly becomes: how do people actually pay for this?

Medical loans are one option, but they’re far from the only one. From payment plans to specialized healthcare financing, there are several ways to manage medical costs. Understanding how these options work — and when each one makes sense — can help you choose a path that fits your care needs, timing, and financial comfort level.

What Are Medical Loans?

Medical loans are typically unsecured personal loans designed to help cover healthcare expenses. Patients apply through a bank, credit union, or online lender, and approval is based on factors like credit history and income. If approved, the loan funds are sent directly to the patient, who can then use the money to pay for medical care.

These loans are often used when health insurance doesn’t fully cover a procedure or when deductibles, copays, or out-of-network costs leave patients with a large balance to cover. Medical loans usually come with predictable monthly payments, set payment terms, and fixed rates, which can make costs easier to plan for — but they also involve interest and longer-term repayment.

Medical Loans: Types and Alternatives

Medical loans are just one way to finance healthcare. Patients today have several options, each with different tradeoffs depending on cost, urgency, and flexibility.

Common ways to pay for medical care include:

• Traditional medical loans or personal loans: Lump-sum loans used to cover medical costs. These are often best for larger, planned procedures, and usually involve fixed interest rates and multi-year repayment.
  
• Healthcare buy now, pay later (BNPL): Payment plans designed specifically for medical care and offered by specialist third-party lenders like Cherry. These options focus on clear monthly payments, transparent funding, and faster access to treatment.
  
• Traditional BNPL: General-purpose buy now, pay later services that aren’t built specifically for healthcare. Think solutions like Affirm and Klarna. These options often work well for smaller purchases, but may have lower limits, shorter repayment windows, or less flexibility for higher-cost medical care.
  
• Healthcare credit cards: Credit cards like CareCredit are marketed for medical use. While convenient, they’re not much different from traditional credit cards, and may carry high APR, as well as surprise charges disguised as interest-free offers.
  
• Traditional credit cards: A familiar option, but typically not designed for large medical expenses. Interest rates can be high, and large balances may become difficult to manage, leading to ballooning credit card debt.
  
• Provider payment plans: Installment plans offered directly by healthcare providers. These are often integrated into treatment and can be easier to adjust if care changes.

Understanding these categories helps patients narrow down which options are worth considering before comparing specific loan details.

How to Choose the Best Medical Loan for Your Procedure

Once you understand the different ways to finance care, the next step is evaluating which option makes sense for your medical needs. The sections below focus on the most important factors patients should consider.

1. Loan Amounts: Does the Financing Match the Cost of Your Procedure?

The cost of medical care varies widely, and financing should reflect that.

High-cost treatments — such as fertility treatments or IVF — often range from $10,000 to $30,000 or more. In these cases, options that support higher amounts, like traditional medical loans, personal loans, or healthcare-specific payment plans, tend to be a better fit. Cherry, for example, offers loans up to $50,000 for treatments of all sizes.

Mid-range procedures, including dental work or cosmetic surgery, may fall between $3,000 and $15,000. For these costs, patients often have more flexibility, and both loans and structured healthcare payment plans can work well depending on repayment preferences.

Lower-cost care may not require a loan at all. For smaller balances, traditional BNPL options can sometimes work, especially when patients are confident they can repay the balance quickly. These options may offer short-term payment flexibility, but they’re generally best suited for lower-cost care rather than larger medical expenses.

The best choice is one that covers the full cost of care without encouraging unnecessary borrowing or taking on more medical debt than needed.

2. Repayment Terms: Balancing Monthly Payments and Total Cost

Repayment terms determine how long you’ll be making payments and how much you’ll pay overall.

• Longer terms lower monthly payments but increase the total cost due to interest.
• Shorter terms reduce interest but require higher monthly payments.

Traditional medical loans often offer longer repayment periods, which can help with affordability but extend debt. Many BNPL options are designed for short repayment windows, which may work for smaller expenses but feel restrictive for higher-cost care.

Some healthcare-focused payment plans aim to balance affordability with reasonable timelines, giving patients predictable payments without unnecessary long-term debt. Cherry, for example, offers always-interest-free plans from 1-2 months, and longer-term options up to 60 months with true 0% APR for qualified borrowers.

3. Interest and Total Cost: Understanding What You’ll Really Pay

Interest on your loan is determined by a few key factors, most notably your credit profile. With traditional medical loans and personal loans, lenders typically set your interest rate based on things like your credit score, income, and existing debt. Borrowers with stronger credit tend to qualify for lower APRs, while those with weaker credit are offered higher rates or may not be approved at all.

Most medical loans don’t offer 0% APR

With traditional medical loans and personal loans, advertised rates may start as low as the single digits for well-qualified borrowers. However, most patients receive interest-bearing loans, and interest typically starts accruing as soon as the funds are issued. That means even if the monthly payment feels manageable, the total amount you repay will be higher than the cost of your care. Over longer repayment terms, interest can add up quickly.

Financing options that are truly 0% APR

Some BNPL financing options are designed to prioritize predictability as well as flexibility. Cherry, for example, offers true 0% APR for qualified borrowers, as well as always-interest-free short-term plans. Because these options are structured to eliminate interest entirely, the “lowest rate” is always 0%. This makes it easier for patients to know exactly what the upfront cost will be, without worrying about interest increasing the price of care over time.

When “0% APR” actually means deferred interest

Medical credit cards often advertise “promotional 0% APR” or “no interest if paid in full” offers. While the promotional rate may be 0% for a limited time, standard purchase APRs often start in the high teens or higher depending on credit.

These plans usually rely on deferred interest, meaning interest accrues quietly in the background and is added to the balance if the promotional period ends before the balance is fully paid off — or if a single payment is missed. When that happens, the total cost can increase sharply at the card’s standard APR.

When evaluating medical financing, it helps to look beyond the monthly payment and consider the full picture: how long you’ll be repaying the balance, whether interest is accruing along the way, and what you’ll ultimately pay by the end. A lower monthly payment may feel easier now, but understanding its impact on total cost can prevent surprises later.

When you’re comparing ways to pay for care, it helps to ask a simple question: is the financing truly interest-free, or is interest just being delayed? Knowing the difference can make a big impact on what you end up paying.

4. Credit Requirements: How Approval Is Determined

Credit requirements vary widely depending on the type of medical loan or financing option you’re considering, and the approval process can directly affect whether you get approved, how much you pay, and how quickly you can move forward with care.

Traditional medical loans and personal loans typically involve hard credit checks and full underwriting. For patients, this means a longer application process and approval decisions that rely heavily on credit scores, income, and existing debt. Patients with strong credit may qualify for lower rates and higher loan amounts, but those with average or below-average credit may face higher costs, reduced approval odds, or denial altogether. Because these applications trigger a hard credit inquiry, they will also temporarily harm credit score.

Traditional and healthcare credit cards usually use a similar approval model. Patients are approved for a revolving line of credit based largely on their credit profile. For patients with thin credit files or past credit challenges, this can make approval harder or significantly reduce their credit limit. These also require a hard credit check for approval.

Modern BNPL options often take a different approach. These solutions typically use alternative approval criteria and streamlined applications, focusing less on traditional credit scores and more on the patient’s ability to manage payments. For patients, this can mean faster decisions, fewer barriers to approval, and less anxiety about how applying might affect their credit. In many cases, approval happens in real time, allowing patients to move forward with treatment without delay.

When comparing options, patients may want to think about how the approval process affects them personally, including:

• Whether applying could impact their credit score
• How likely they are to be approved based on their credit profile
• Whether approval delays could postpone treatment
• How comfortable they feel taking on credit-based debt

The right option isn’t just the one with the best terms on paper — it’s the one that provides access to care without creating unnecessary stress, cost, or obstacles along the way.

5. Timing and Urgency: How Quickly You Need Care

For some procedures, patients have time to plan. For others, delays can be stressful or medically significant.

Traditional medical loans often take several business days to approve and fund, which can postpone treatment. Healthcare-specific payment plans are often designed to work at the point of care, allowing patients to move forward immediately.

If timing matters, the speed of approval and funding should be a key part of the decision.

6. Flexibility: What Happens If Treatment Changes?

Medical care isn’t always predictable. Treatment plans can evolve, additional services may be recommended, and final costs don’t always match the first estimate. If there’s a chance your care could change, the “best” financing option is often the one that can adjust with you.

Here’s how different options tend to handle changes:

• Traditional medical loans and personal loans (lump sum): Least flexible. The amount and repayment schedule are fixed, even if treatment costs change.
  
• Healthcare and traditional credit cards (revolving credit): More flexible. Patients can use what they need as costs arise, though balances can become expensive if carried long-term.
  
• Provider payment plans and BNPL: Often tied closely to treatment, which can make them easier to adjust if care plans change.

A simple way to decide is to ask: Is my treatment cost fixed and known, or could it change?
If it’s fixed and you want a clear payoff schedule, a loan or structured payment plan may make sense. If it’s likely to evolve, a revolving credit option or a provider-based plan may be a better fit — especially if you want the ability to adapt without starting over.

Picking the Solution That’s Right for You

With so many ways to pay for healthcare, the “best” option often comes down to the type of procedure, the cost, and how quickly you need care. This quick overview can help narrow your options.

• Traditional medical loans or personal loans: Best for high-cost, planned procedures with a known price, such as fertility treatments or major elective surgeries. These options work well when patients qualify for favorable terms and are comfortable with longer repayment timelines.
  
• Healthcare-specific buy now, pay later (BNPL): A strong fit for patients who want clear monthly payments and fast approval for medical care. These options are often well-suited for mid- to high-cost procedures where immediate access to treatment matters.
  
• Traditional BNPL: Most appropriate for lower-cost care or smaller medical bills that can be repaid quickly. These options tend to have shorter repayment windows and lower limits, which may make them less practical for larger procedures.
  
• Healthcare credit cards: Useful when flexibility is important or when treatment costs may change over time. Because they function as revolving lines of credit, they can accommodate phased care, but patients should be cautious about deferred interest and promotional terms.
  
• Traditional credit cards: Best reserved for short-term use or smaller expenses when other options aren’t available. High interest rates can make them costly for larger balances.
  
• Provider payment plans: Often ideal when patients want financing tied directly to treatment. These plans can be easier to adjust if care changes and may offer faster access to services.

No single option is right for everyone. The right choice is the one that matches your procedure, budget, and timeline — without creating unnecessary stress or long-term financial strain.

Medical Loan FAQ

What types of treatment can medical loans be used for?

Medical loans can be used for a wide range of medical procedures and healthcare costs, especially when insurance doesn’t cover the full expense. Common uses include dental work, plastic surgery, med spa treatments, dermatology appointments, veterinary costs, fertility treatments such as IVF, weight loss procedures, and elective procedures like LASIK. They may also be used as a medical equipment loan for necessary healthcare purchases, including mobility scooters, CPAP machines, or other durable medical equipment.

Patients often use medical loans to cover out-of-pocket costs such as deductibles, copays, or out-of-network care, as well as related expenses tied to planned treatment. In some cases, loans are used for debt consolidation or refinancing, allowing patients to combine existing medical debt into a single monthly payment with a new loan rate.

While medical loans are most commonly used for planned care, some patients explore them following a medical emergency, though approval and funding timelines can make traditional loans less practical in urgent situations.

Do you need good credit to be approved for a medical loan?

It depends on the type of financing you choose. Traditional medical loans and unsecured personal loans offered by banks, credit unions, or other lenders usually require good credit for approval. These lenders evaluate credit score, credit history, and overall creditworthiness as part of the credit approval process. Borrowers with strong credit are more likely to qualify for larger amounts and the lowest rates, while borrowers with bad credit may face higher costs or limited eligibility.

However, not all loan options rely on traditional credit requirements. Some healthcare-specific BNPL and provider payment plans use alternative approval criteria and are designed to be more inclusive. These options may not require good credit or a hard credit check, making them accessible to a broader range of patients.

How do you apply for a medical loan?

Applying for a medical loan usually starts with a loan application through a lender. Many traditional lenders allow borrowers to prequalify first, which means you can see potential loan offers, estimated rates with a loan calculator, and compare loan terms using a soft credit check. Prequalification can help you understand your options without affecting your credit score.

If you decide to move forward, the full application process typically includes a hard credit check, income verification, and a review of your credit profile. Final loan offers may vary based on credit approval, loan amounts, APR, and repayment timelines. Once approved, loan funds are usually sent by direct deposit to a checking account within a few business days rather than the same day.

Some healthcare-specific BNPL options and provider payment plans work differently. These often skip traditional prequalification altogether and instead offer quick, streamlined applications at the point of care. Approval decisions may happen in real time, sometimes without a hard credit inquiry, allowing patients to move forward with medical treatment immediately.

Are payments reported to credit bureaus?

In many cases, yes. Payments on traditional medical loans and healthcare credit cards are often reported to credit bureaus and can affect your credit report. Making on-time monthly payments may help build credit over time, while missed payments can negatively impact your credit score.

Reporting practices vary with modern financing options. Some BNPL providers do not report routine payments, while others may report missed payments or defaults. It’s important to understand how a specific financing option handles reporting before committing, especially if protecting your credit profile is a priority.

What fees besides interest should you evaluate when picking a medical loan?

Beyond interest and APR, borrowers should look closely at additional fees that can increase the total cost of a medical loan. These may include origination fees, late payment fees, or prepayment penalties. Some loans advertise low-interest or competitive rates but include fees that raise the effective annual percentage rate.

Reviewing disclosures carefully can help you understand the true cost of borrowing and avoid surprises over the life of the loan.

What payment methods are available when repaying a medical loan?

Most medical loans are repaid through automatic monthly payments withdrawn from a checking account. Some lenders may also allow manual payments or transfers from a savings account.

Provider payment plans and BNPL options often offer similar repayment methods but may be more closely tied to the provider relationship. Understanding available payment methods — and whether payments are flexible or fixed — can help ensure the option you choose fits comfortably into your personal finance routine.

What if you can’t qualify for a medical loan?

If you don’t qualify for a traditional loan, you might be able to qualify for an alternative. Some patients explore healthcare-specific BNPL, provider payment plans, or financial assistance programs offered by hospitals or nonprofit organizations. These options are often designed to be more accessible and may not rely as heavily on traditional credit requirements.

Are medical loans secured or unsecured?

Most medical loans are unsecured loans, meaning they don’t require collateral. Approval is based on creditworthiness rather than assets.

In rare cases, a secured loan — backed by collateral such as a savings account or other asset — may offer lower interest rates. However, secured loans come with additional risk and are less commonly used for medical expenses compared to unsecured medical financing options.

Explore Flexible Financing with Cherry

The best medical loan depends on more than rates or terms. It depends on the procedure, the timing, and how comfortable you feel managing payments over time.

Traditional loans can work well for planned, high-cost care when patients qualify for favorable terms, or when they need to refinance existing debt. Healthcare-focused payment plans offer a more modern approach, prioritizing speed, clarity, and access to treatment.

Cherry was built to support this kind of experience by working directly with healthcare providers and offering predictable monthly payments without unnecessary delays. Patients benefit from a 60-second application that doesn’t hurt credit score, and over 80% of applicants are approved instantly for loans up to $50,000 with terms as long as 60 months. There are no hidden fees or deferred interest traps — just transparent plans with true 0% financing for qualified borrowers.

When practices partner with Cherry, they can offer more care while maintaining stable cash flow. Cherry pays providers the full cost of treatment up front, then manages the entire repayment process from start to finish. There’s no administrative burden or financial risk. Cherry takes care of it all — including customer service. There’s no setup, annual, or subscription fee — just a merchant fee that’s lower than any other competitor’s. Find out why over 50,000 providers choose Cherry. Learn more about how flexible payment options can bring peace of mind to both patients and practices.