What Are Dental Loans?
Dental loans are a form of personal loans meant to cover dental expenses. Like most loan types, these loans are usually given out with specific interest rates and repayment periods, depending on your creditworthiness and other factors.
Dental loans fall under unsecured loans, meaning you can acquire them without any collateral/security. You can access dental loans through credit unions, online lenders, banks, and other financial institutions.
Generally, these loans may be somewhat expensive since they’re unsecured and may pose risks to lenders if a borrower defaults on payments. However, they are often cheaper than most other unsecured loans, especially those related to healthcare.
How to Get a Dental Loan
You can obtain dental loans in several ways. Many dentists, particularly those dealing with cosmetic dentistry, provide various financing plans you can consider. For example, some dentists have partnered with lenders offering dental work funding, whereas others simply offer in-house financing.
Alternatively, you can procure loans for dental work from third-party lenders of your choice. Many creditors giving personal loans usually have this financing option, for example, banks and online lenders.
Although your dentist might be offering their own dental loans, it’s still best to compare with other dental loan providers elsewhere to see if you can find one with better rates. Below are the simple steps to take when getting a dental loan from a lender:
1. Compare different lenders
It’s best to compare different lenders’ loan terms, rates, and eligibility criteria and select one with requirements matching your needs/preference. Weloans is a great platform that connects with hundreds of trusted lenders.
2. Submit your information
After selecting a preferred lender, the next step is formally submitting the required information for the loan you want. You quickly achieve this by filling out an online application form directly with the lender or through a broker. Your dental loan lender may require you to provide your name, income, social security number, and employer details.
3. Select loan amount and term
It would be best to include the loan amount you wish to borrow and a loan term you’re comfortable with during the application. However, it’s highly advisable to select a period and the amount you can repay without straining.
4. Wait to be approved
After submitting your application, your lender will review it to see if you qualify for the requested loan. Usually, the approval time varies with lenders, but most of them will get back to you as soon as one business day.
5. Check and sign the loan agreement
If the lender approves your loan request, they’ll send you an agreement. It’s best to review it keenly before signing it. Signing it will mean you agree with loan terms. Once you submit the agreement, the lender will disburse your funds, but disbursal time may vary with each lender, but most of them release money as soon as a day.
How much would you like?
Factors to Consider When Selecting Dental Loans
Whether dental or not, it’s always best to be careful and wise when taking out a loan. It would help to consider several factors to avoid taking loans that could stress you in the long run. Here are four crucial things to keep in mind when obtaining dental loans:
1. Loan amount and terms
You should check the loan terms and amounts offered by the lender to see if they fit your needs. It’s good to take out dental loans from lenders offering loan amounts that can fully cover your dental costs with an extended payment period. However, lengthier terms can increase the loan’s interest in the end.
2. Eligibility requirements
Lenders usually have unique eligibility requirements for their loans. It’s good to review them first before applying for a loan.
3. Fees and Annual Percentage Rate (APR)
APR is the total cost of taking out a loan, and it includes the interest and any other fees incurred. You should compare the APRs of different lenders to get a less expensive loan and confirm if the lender charges additional fees like origination and late-payment fees.
4. Lenders credibility
There are many fraudulent lenders today, especially lenders from online loans. Therefore, you should always confirm if the lender you plan to obtain a loan from is legit and has a good reputation.
How Does WeLoans Compare?
|Why Use Us?|
|How much am I allowed to borrow?||Up to $35,000||No hidden fees or charges|
|What are typically the loan terms?||Up to 36 months||Various repayment options|
|Do lenders check my credit?||Yes||Soft search only|
|Do lenders take bad credit?||Yes||Bad credit considered|
|Chances of approval||Good||Quick turnaround|
|How to apply?||Apply online||No paperwork needed|
Dental Loans Alternatives
Besides taking out a dental loan, there are several solutions to financing dental expenses. Some of these options include:
1. In-house financing
Most dentists usually provide in-house funding plans you can enroll in and use when you’ve high dental bills. These plans can help you clear expensive or emergency dental expenses and are an excellent option for those without insurance.
2. Health saving account (HSA)
A health saving account refers to a savings account that allows you to save money on a pre-tax basis to help you finance future qualified medical costs like dental care procedures. However, this savings account is only ideal for individuals with high-deductible health plans.
3. Flexible spending account
Another excellent option is opening a flexible spending account (FSA). An FSA refers to a saving account you save money into and utilize for various out-of-pocket healthcare expenses. Usually, this money isn’t taxed and is limited to $2 850 per individual every year.
Frequently Asked Questions
1. What score is needed to obtain a dental loan?
Lenders usually have minimum credit scores for their loans. Usually, they categorize credit scores as poor, fair, good, or excellent. Typically, borrowers with good and excellent scores(usually 670 and above) get personal loans with the best rates. Also, there are lenders offering fair or bad credit dental loans to individuals with low scores.
2. Between a personal loan and a credit card, which is better for dental work?
Both personal loans and credit cards can be costly, and it’s good to go for an option with lower APRs and flexible payment terms. The best loan to take should have an APR of not more than 36%, a rate considered affordable by consumer advocates and financial experts.
3. What do dental loans cover?
Dental loans can help you cover almost any kind of dental work, such as cosmetic dentistry. Some of the expenses you can pay with a dental loan are teeth cleaning, dental exam, teeth whitening, and filling.
4. Can I get dental loans for bad credit?
Although it’s usually hectic, you can access dental loans for bad credit from various lenders. For a much better experience, you can use a broker who will do all the legwork.
Brokers usually have a direct lenders network that they can quickly sift through and connect you, depending on your needs and situation. They eliminate the hassle of searching and applying through multiple lenders for whom you may not even qualify for their loans.