Cosmetic and Plastic Surgery Loans / Financing
This guide provides information about loans and financing for plastic and cosmetic surgery procedures.
How does Cosmetic/Plastic Surgery Finance Work?
If you can’t afford the costs of a cosmetic, plastic or reconstructive surgery procedure, many finance companies have set up loan packages specifically for this purpose. Many companies provide loans for cosmetic and plastic surgery exclusively. Unfortunately, some doctors and surgeons won’t accept payment through finance companies. This is because lenders require the surgeons to discount their fees by up to 10% in order to be able to provide the loan. Whilst a doctor may not accept payment through finance companies, the clinic may offer financing options directly to patients.
What is the process?
Where the loan is sourced from a company outside the cosmetic center, the lender will require you to formally apply for the loan. Many offer a quick online preapproval. If you are approved, the financier usually pays the surgeon directly for the surgery costs. You are then required to repay the loan in accordance with the terms of your agreed loan contact. Usually there is no down payment required for a cosmetic/plastic surgery loan.
Can I Get A Cosmetic Surgery Loan If I Have Bad Credit?
Many companies offer financing to patients even if they have a poor credit rating. If you’ve defaulted on a prior loan or if you’ve had financing declined, you may still be approved by an alternate lender. However, due to your record you will be deemed an increased risk to the financier. This means if you are approved, you may only be offered high interest rates. Low interest rates are mainly reserved for patients who have an excellent past credit rating.
Instalment vs Revolving Cosmetic Surgery Loans
There are two types of payment plans offered by finance companies: instalment and revolving. Each has its own advantages and disadvantages. Under an instalment loan, you borrow a certain amount and pay fixed interest on that amount for a fixed term. Terms offered can range from 24 to 60 months. Conversely, with a revolving credit plan, you are given an approved credit limit but you only pay interest on the amount you use or withdraw. Generally, the credit can be used repeatedly.
Instalment plans have higher credit limits (usually up to $25,000) whereas the amounts available under a revolving loan are usually lower (up to $15,000). As for interest rates, these are lower for instalment loans (5.8% to 19%) as opposed to higher rates (10% to 25%) for revolving plans for a person with the same credit rating.
Can I Use My Cosmetic Surgery Loan On Other Procedures?
If you have an excellent credit rating, then some plastic surgery finance companies may offer you a revolving line of credit with a limit above your cosmetic/plastic surgery procedure costs. Depending on your finance contract, you may then use the remainder of your credit to pay for other cosmetic procedures. Remember that you still have minimum repayments and that interest will continue to accrue on the total amount withdrawn.
If you have no credit history or have credit problems, the loan company may not allow you any surplus funding. Usually, the loan amount is exactly the total cost of the surgeon’s fee, operating room fee, anesthesia and the cost of implants (if any), paid directly to your surgeon.
Before you sign up for a cosmetic or plastic surgery loan, make sure your surgeon will accept payment via financing. Since there are plenty of cosmetic and plastic surgery finance companies willing to offer loans, take the time to search around for competitive loan terms and low interest rates. Make sure you’re confident you can afford to make repayments. It’s also advisable to have an attorney explain the loan documents to you before you sign.