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Personal loans are sometimes the best option to finance cosmetic or plastic surgery. Other times they are not. Minor nuances can make a major difference in affordability and result.
The two medical specialties are closely related, but not the same.
Cosmetic surgery enhances appearance by improving aesthetic appeal, symmetry, and proportion. Patients must fund 100% of the expenses out-of-pocket. Plastic surgery corrects dysfunctional areas of the body and is often medically necessary. Insurance companies fund most of the expenses.
The two borrowing alternatives are closely related, but not the same.
- Personal loans provide funding directly to the patient. People gain online access to multiple lenders and can choose between many surgeons.
- Patient finance companies provide funding directly to the practice. This limits the individual to one surgeon and one in-house lender.
Loan Options to Finance Cosmetic Surgery
Personal loans are the preferred option to finance many cosmetic surgeries. Health insurance does not cover any procedure that involves the aesthetic enhancement of the body or re-shaping normal tissue to improve appearance. Therefore, patients must pay the entire cost out-of-pocket for any cosmetic surgery.
It’s easy to get a personal loan. If approved, you can fund up to $10,000 towards the cost of many of these common cosmetic surgeries. Enjoy the flexibility to choose the practice offering the best result. Repay the lender in equal monthly installments.
|Buttock Implants||Dental Implants|
|Hair Transplant||Laser Hair Removal|
|Lip Injections||Mommy Makeover|
Bad credit personal loans can help finance cosmetic surgery for patients with a negative history appearing on their consumer report. People with an extremely low FICO score can boost their chances of finding a lender willing to approve their application. Follow this two-part strategy.
- Subprime lenders specialize in working with people with poor borrowing credentials. Expect to pay higher interest rates and larger origination fees if you are a high-risk borrower.
- A large network of online lenders increases your odds of finding a willing partner. Every company uses slightly different underwriting criteria. Volume via a single web-based form helps your chances.
Individuals with a bad credit history and no cosigner need to balance out their borrowing profile. Without a cosigner to promise prompt payment, a patient with a poor FICO score needs to provide at least two positive elements.
- Demonstrate reliable earnings and offer information to verify employment. This helps the lender determine if you can afford the projected monthly payments.
- Provide your checking account and bank routing number and authorize automatic withdrawals. This gives the lender a direct way to draft on time payment every month.
No Credit Check
Personal loans with no credit check can help finance cosmetic surgery for patients with no historical data on their file. This option also is attractive to people with poor FICO scores. The lender does not pull a copy of your traditional consumer report (Experian, Equifax, or TransUnion).
No credit check lenders focus on income and affordability while using alternative consumer reports showing financial history. As before, expect to pay a higher interest rate and/or origination fee.
- Income history should be at least two years. Provide employment verification information to facilitate the underwriting decision.
- Affordable means that the projected monthly payment should not exceed a certain percentage of your income. The company may consider other obligations in this calculation.
Guaranteed approval cosmetic surgery financing offers for bad credit patients are not real. No legitimate company will approve everyone regardless of their past negative payment behavior or their current unemployment status.
We read the fine print on two websites touting guaranteed approval. We found two qualifiers that nullify virtually every poor FICO score or unemployed applicant.
- 80% down payment requirement with no extra money for any surgical complications
- Only applies to applicants meeting the income, employment, and FICO score criteria
Some patient financing companies will guarantee payment to the surgical provider – even if the individual defaults on the monthly payments. They offer this pledge to encourage referrals from surgeons looking to keep their facility running at full capacity.
However, company assurance to surgeons benefits the practice more than it helps their customer. Guess at who funds the warranty? The patient does with higher in-house borrowing costs.
Best Financing Options for Plastic Surgery
The best financing options for plastic surgery follow a different set of logic based on medical necessity. Plastic surgery corrects dysfunctional areas of the body, which means that it is often medically necessary. This opens up three opportunity areas.
- Health insurance pays much of the cost
- Flexible spending accounts will reimburse qualifying expenses
- The federal government may subsidize both programs
It’s easy to get a personal loan to fund any leftover expenses. The minimum credit score needed to qualify is lower since the principal amount is smaller. These common plastic surgery reasons may qualify as medically necessary. Obtain a pre-certification to estimate the benefit.
- Cleft lip and palate repair
- Breast reconstruction
- Gender Reassignment
- Male to Female (MTF) Top
- Facial Feminization
- Female to Male (FTM) Transition
- Weight Loss
- Skin Removal
- Skin grafts
Health insurance is the ideal way to finance any plastic surgery – especially for patients with a bad credit history. The plans will pay a portion of the expenses associated with medically necessary surgical procedures. Procedures that reconstruct facial and body defects due to birth disorders, trauma, burns, and diseases typically meet the standard.
People with poor FICO scores frequently have low incomes. The federal government subsidizes the premium costs for individual plans purchased via the state exchange. The subsidy amount is income-based. Therefore, people with the worst borrowing histories often qualify for the most help!
Covered procedures do leave unreimbursed medical expenses that vary by plan features and network coverage. Expect to fund a larger amount if the practice does not participate in the network. Ask for an estimate of balance billing charges in advance.
- Out-of-network charges
No Credit Check
Your employer’s Flexible Spending Account (FSA) can work like plastic surgery financing with no credit check and below zero interest rates. This option works only for medically necessary procedures – as many are. Verify coverage with your FSA administrator.
FSA medical loans work as follows.
- Elect the amount you want to contribute during the open enrollment period
- Schedule the elective procedure at the beginning of the plan year
- Your employer must reimburse all qualifying expenses immediately
- You then have up to 52 weeks to repay your employer using pre-tax payroll contributions
The employer cannot perform a credit check. By IRS rules, they must accept all takers regardless of negative payment history. They cannot pull a copy of your consumer report.
Pre-tax payroll contributions translate into a below-zero interest rate. Federal and state governments may subsidize this borrowing method by lowering the amount of taxes you must pay. You avoid three types of taxes on your contributions.
- Federal taxes range from 10% to 37% depending on income range
- FICA taxes are 7.65% for both employees and employers
- State income taxes vary depending on where you work
The two previous options offer the closest thing to a guaranteed approval for plastic surgery financing. This applies to bad credit patients. Insurance precertification (or pre-authorization) is the key step. Preauthorization is a decision by your health insurer or plan that a service is medically necessary.
Documented medical necessity has implications about payment assurance for both alternatives. Obtain written confirmation with the certification number and file it in a safe place before undergoing the knife.
- It is not a promise that your insurance plan will cover all the cost for everyone. However, it is very rare that they will deny a claim after pre-certifying the procedure. If denied you have strong legal footing to pursue internal and external (state commission) appeals.
- It is not a promise that the FSA administrator will reimburse the expense for everyone. However, written documentation from a healthcare company that the procedure is medically necessary is very strong. In addition, you may have other qualifying expenses during the plan year.