Medical emergencies happen, and even people with health insurance sometimes struggle to pay medical bills. If you don’t have enough in your emergency fund to cover expenses, you may be able to use a personal loan for your medical expenses.
Some lenders offer “medical loans” – these are typically personal loans that you can use to cover healthcare costs. Citi offers personal loans that you can use for almost anything, including medical expenses.
Let’s look at how personal loans work and when they can make sense as a financing option for medical expenses.
How to apply for a personal loan
Applying for a personal loan is fairly straightforward. You can typically apply online or in person at a financial institution.
You’ll fill out the application and provide relevant documents, such as paystubs, a government ID and proof of address. Many lenders, like Citi, can tell you if you’re approved right away. Citi accountholders can get funds deposited the same day in their Citi accounts, and non-Citi accountholders can get funds deposited via direct deposit within two business days.
Who can apply?
Every lender will have their own eligibility criteria that includes income, credit score, debt-to-income ratio and age. For example, to apply for a Citi personal loanyou must be at least 18 years old and have a yearly income of at least $10,500. You'll need to meet Citi’s creditworthiness criteria and have valid proof of your age, income and address to be considered for a personal loan.
Advantages of a personal loan for medical financing
Using a personal loan to pay for medical expenses has several advantages, including fixed monthly payments and the ability to access funds quickly.
Fast funding
A personal loan can be a quick and easy way to access the funds you need. Many personal loan applications are processed the same day – Citi processes applications within 60 seconds – and, if approved, the funds are usually deposited soon after that. With quick access to funds, you don’t have to worry about when you’ll be able to pay for medical expenses.
Fixed monthly payments
Personal loans are usually fixed-rate, allowing you to pay back the amount in consistent monthly installments that don’t change over the life of the loan. They can be a lower-cost choice compared to options like credit cards, which typically come with a higher interest rate.