Secured Medical Loans - What is It?

By Glen Fine

Medical emergencies, whether brought on by accident or illness has always been a big concern for many. Medical expenses, especially those that require several tests, surgery and other procedures, can be very costly. Many prepare for such events by setting aside a portion of their income and savings. However, medical costs can still pile up, eating up your precious reserve. That's where secured medical loans come in handy.

What is a secured medical loan? To answer this, we must first define what a secured loan is. A secured loan is a loan taken from a lender in exchange for collateral. This means that in order for your secured loan to be granted, you must pledge a valuable piece of property that costs more than the amount of your secured loan. This is a form of protection for the lender: they can be certain that you will be paying them since you wouldn't be able to take back your collateral until you have paid off your loan.

A secured loan may seem unfair to the person taking out the loan given this arrangement, but unlike traditional or unsecured loans, a secured loan is often higher comes with a low interest. Given this definition of secured loans, secured medical loans are secured loans taken out for the purpose of paying for medical expenses.

Secured medical loans are offered by banks and various lending institutions. The purpose of secured medical loans is to aid patients and families to pay for the rising cost of medical expenses. This medical financing option is widely available throughout the country.
To apply for a secured medical loan, you would need to send an application form to the bank or lending institution. Depending on where you would apply, the requirements may vary. However, it is advisable to have at least 2 years of consistent employment, a gross monthly income of $1500 and up, a FICO score of 580 (minimum), no bankruptcies filed in the last two years and an established credit history.

But what if I have a bad credit? There's no need to worry! There are also lending organizations that offer bad credit secured medical loans. The requirements would be more stringent, but once your bad credit medical secured loan application is approved, you can use this opportunity to improve your credit rating.

If ever you find yourself in a medical emergency, don't despair. There are solutions to rising medical expense in the form of secured medical loans.