A good medical loan can bridge the gap between Canadian healthcare coverage and what you want or need. Certainly, our public healthcare system covers many things, but usually only “necessary” treatments.

However, the system is slow and riddled with complications. You may think a particular treatment is necessary, but the government may not agree. Conversely, your treatment may be in the system, but not yet approved. Some treatments are considered cosmetic and the government simply will not pay.

Even when healthcare does provide coverage, it can be very limited for certain treatments. For instance, most provinces restrict how many visits you can make to acupuncturists, chiropractors, massage therapists, naturopaths, osteopaths, and physiotherapists. Consequently, you need to pay out-of-pocket when you want need additional treatments.

Thankfully, a good medical loan can help you meet these expenses. While many medical loans exist, that doesn’t mean they’re a good choice. Here are a few things you should consider when choosing a medical loan.

What Will The Medical Loan Cover?

Many lenders offer medical loans, but often only for certain procedures. For instance, they might fund needed dental work, but not cosmetic surgery.

Always look for a lender that funds any medical need. This should include cosmetic surgery, dental (both routine and cosmetic), fertility treatments, hair loss, eye and ear treatments, weight loss, medications, and more.

You should be able to get a medical loan when you have the means to repay.

Is it an Uncomplicated Process?

A good medical loan offers an uncomplicated process. From start to finish, it should be simple and straightforward. Unfortunately, this isn’t the case with all lenders.

Some lenders are very detail-oriented and demanding. This is particularly true if you apply in-person, since they expect you to come to them and take time out of your busy day to complete their lengthy application form. Luckily, with an online medical loan you eliminate this problem.

A good online lender offers a simple application form that takes less than 15-minutes to complete. You can apply 24/7 from any device. Fortunately, you don’t need to provide information on where you worked, lived, or banked years ago either. The lender is only interested in your recent history and where you stand now.

Do They Use the Pre-Approval Process?

A good medical loan depends on a pre-approval process. The lender uses a soft credit inquiry to access your credit file. This provides them with a snapshot of your financial position, but it does not affect your credit score.

On the other hand, traditional lenders often use a hard credit inquiry. This provides them with your entire credit file, and it does lower your credit score. This effect can last for up to three years and reduce your score by as much as 12 points.

Besides protecting your credit score, the pre-approval method also allows you to see what terms the lender is offering you. If you do not like their terms, you can shop elsewhere without worrying about your credit. This is not the case with a hard credit inquiry.

Applying through multiple lenders using a hard credit inquiry, can make it seem you’re struggling to obtain credit. As mentioned, every hard inquiry can lower your credit score too. If you have a short credit history or less than pristine credit, that’s a big deal.

Do They Have a Minimum Credit Score Requirement?

Lenders will check your credit. However, many base their decision solely on your “credit score”.

Think of your credit score as a numerical snapshot of your finances, based on certain factors within your credit report. It can range between 300 and 850 or 900 points, depending on the credit reporting agency. Lenders use this score to predict the likelihood you will repay your medical loan.

Regrettably, many lenders set a minimum credit score requirement and it can be quite high. If you don’t meet this, they won’t consider your application.

Luckily, some lenders do not have a minimum credit score requirement. For those with less than pristine credit, it is best to choose one of these lenders. They’ll consider many factors, not just your credit.

No Proof of Income

This is an important consideration, because it takes time for you to collect this information. Instead, choose a lender that offers digital income verification.

With your authorization, the lender obtains a report on your regular direct deposits into your bank account. They can’t see anything else and the process is safe and secure.

The advantages of this are many-fold. Firstly, you don’t need to do anything other than providing banking information within your application form. Secondly, it speeds the application process. There’s no digging around for old pay stubs, uploading to a website, or visiting an office.

Finally, it is incredibly safe. Your data is heavily encrypted.

Does the Lender Consider Various Income Sources?

Should you be someone who earns their income in another way other than regular employment, this will interest you. Some lenders offer a good medical loan and will consider income from alternative sources.

Potential income sources include part-time employment, self-employment, or a government or private pension. The only condition is that you are paid regularly through direct deposit.

A Good Medical Loan Doesn’t Require Collateral

Many lenders offer medical loans, but they want you to back it with collateral. This guarantees they’ll get their money, either through regular payments or by seizing your asset, such as a car or home.

Luckily, this isn’t a requirement for all medical loans. You don’t need to risk a valuable asset, just to get the medical care you need. Instead, the lender based their decision on a variety of factors. Your credit may play a role, but your income and debts are of more importance. If you earn a steady income and carry a reasonable amount of debt, you could qualify.

Choose a Licensed Lender

This is also an important consideration when deciding on a medical loan lender. Using an unlicensed lender can lead to plenty of problems.

For instance, unlicensed lenders are often scam artists only after your sensitive personal data. If they get it, it could lead to identity theft and illegal use of your information to obtain credit.

As well, unlicensed lenders aren’t bound by regional and federal consumer protection laws. Even if they do grant you a medical loan, you could pay more since their interest rates, fees, and penalties aren’t regulated.

Make Sure It Is a No-Fee Medical Loan

Unfortunately, some unscrupulous lenders hide unnecessary fees by making them seem they are industry norms. One is an origination fee charged just for setting up your account.

This fee can be considerable, ranging between 0.5 and 8.0 percent of your loan amount. You should never pay this as it is an administrative expense, not one you should bear.

The other cost you should not pay is a pre-payment penalty. This is a charge lenders levy if you pay your loan off quicker than outlined in your loan contract. It is meant to compensate the lender for the interest they would have earned normally.

Fortunately, a good medical loan is fee-free. The only time you would need to pay extra is if you fail to meet your loan obligations.

How Quickly Do They Make a Decision & Release Funds?

No one wants to sit around on pins and needles wondering whether they’ve been approved. Luckily, a good medical loan offers a decision within minutes.

Equally important is what happens if you decide to move forward. A good lender prepares your loan contract straightaway and sends it to you for digital signature. This triggers funds release, which should occur with 24 hours, or on the next business day.

Understand Their Requirements

A good lender should provide you with their basic loan requirements. If they don’t, look elsewhere. Otherwise, you’ll need to fill out an application form and wait to find out. Obviously, that’s a big waste of time if you can’t possibly qualify.

Get a Medical Loan Through FlexMoney Easily

FlexMoney values your time. As a result, we’re happy to provide you with our basic requirements for our medical loans here:

  • Minimum net monthly income of $2,000 from the same source for at least the last three months (we consider full-time and part-time employment, self-employment, and private or public pensions)
  • Income paid by direct deposit
  • Active account with a Canadian financial institution with at least three months of transactions
  • Canadian citizen
  • At least 20 years of age
  • Valid email address and mobile phone number

Sorry, we cannot help those actively involved in a bankruptcy, consumer proposal, or credit counselling program. We will not consider applications from those earning income from Employment Insurance, the Disability Tax Credit, or COVID-19 benefits either.

Benefits of Choosing FlexMoney

  • 100% online process
  • We grant loans for all medical needs
  • Various income sources considered
  • Simple, fast loan process
  • Pre-approval process with soft credit inquiry
  • No minimum credit score requirement
  • Electronic income verification – no proof of income
  • Digital contract signing
  • No origination or prepayment fees
  • Licensed lender in Ontario, British Columbia, Alberta, Nova Scotia, Saskatchewan, Newfoundland & Labrador, Prince Edward Island, and Yukon Territory.
  • Loans between $500 and $15,000
  • Repayment terms between 6 months and 5 years

If you want to know more about FlexMoney or you’re ready to start the apply for an online personal loan, please visit our website. You can also find an in-depth FAQ page there that answers commonly asked questions. We also provide more information on our Canadian medical loans here.

FlexMoney makes obtaining a good medical loan easy. Immediately acquire care and repay with terms that suit your life.