Dental loans: How to finance dental costs
Key takeaways
- A dental loan is a type of unsecured personal loan designed to cover dental expenses.
- This form of financing can be ideal because it often has a more competitive APR than most credit cards.
- It’s possible to secure funding with bad credit, but you’ll likely pay more interest and fees.
- Before taking out a dental loan, compare your options and explore alternatives to find the best fit.
Dental work can be expensive, but getting it done can save you money in the long run. If you’re strapped for cash, consider taking out a dental loan, which is a personal loan used specifically to cover expenses related to dental care. This financing option typically has a lower average interest rate than a credit card — 12.38 percent versus 20.10 percent, respectively.
Before taking out a dental loan, explore alternative financing options. This may help you save money and avoid a hard hit to your credit. If you do need to borrow money, shop for quotes from multiple lenders to ensure you are choosing the most cost-effective option to cover your dental work.
What is a dental loan?
A dental loan is a type of medical personal loan used to pay for dental expenses. Like other personal loans, they have fixed monthly payments and interest rates. In addition, they are usually unsecured loans, meaning they don’t require you to pledge any collateral.
You can apply for dental loans through a bank, credit union or online lender. Loan terms and interest rates vary based on your creditworthiness. Borrowers with strong credit and a high income will qualify for the lowest rates, which start at under 7 percent. Those who have less-than-perfect scores may receive higher interest rates, and that translates to a more expensive dental loan.
That said, be cautious when using a loan — or medical credit card — to cover dental procedures. A KFF healthcare debt survey found that 24 percent of adults currently have medical or dental debt that they are unable to pay off. To avoid being part of that statistic, prequalify with at least three lenders and estimate how much you will spend each month and overall.
How much do common dental procedures cost?
What you will pay out-of-pocket for a dental procedure depends on what your insurance covers — if you have it. Humana list some cost ranges for common dental procedures, but expect your price to depend on your location and medical needs.
| Dental procedure | Cost range |
|---|---|
| Basic cleaning, including polish | $75 to $200 |
| Amalgam filling (1 to 2 teeth) | $50 to $150 |
| Composite or ionomer filling (1 to 2 teeth) | $90 to $250 |
| Dental crown (per tooth) | $500 to $2,000 |
| Tooth extraction | $75 to $800 |
| Root canal | $500 to $1,500 |
Compare dental loans
To ensure you get the best rates on a dental loan, you should prequalify with at least three lenders. While most lenders don’t restrict how you use your loan funds, you could have more success with financing by going with a lender that offers medical loans.
Best Egg
-
Best Egg offers unsecured loan options suitable for dental financing. The Best Egg Major Purchase Loan is designed to help you cover unexpected expenses up to $50,000 with a fixed APR ranging from 6.99 percent to 35.99 percent.
LightStream
-
LightStream offers personal loans up to $100,000 for borrowers with excellent credit. Its interest rates are lower than most competitors, starting at just 6.49 percent. Because its minimum loan amount is $5,000, LightStream is best suited for a borrower who has more expensive dental needs.
Upstart
-
Upstart offers unsecured personal loans starting at $1,000, making it ideal for dental loans. Its rates are relatively competitive for borrowers with excellent credit. And while its maximum APR is high, Upstart doesn’t base its eligibility on credit score alone, so you may still be able to get a loan even if your credit isn’t top-notch.
SoFi
-
SoFi offers competitive personal loan options for borrowers with good credit, but with a minimum loan amount of $5,000, it may only be suitable for those with expensive dental needs. Where SoFi stands out best is its flexible origination fee. If you opt to pay one, you could get a discount on your APR. This is a trade-off other lenders don’t offer.
Avant
-
Avant is a good choice for borrowers with bad or fair credit who don’t need to borrow a significant amount for dental costs. Its minimum loan amount is $2,000, but it maxes out at $35,000. That said, it is one of the few lenders that offers a loan term of 24 months, making it ideal if you want to pay off your dental loan quickly.
How to compare dental loans
Consider a lender’s eligibility requirements, terms and available amounts when comparing dental loans.
- Eligibility requirements: Minimum credit score and income requirements vary based on the lender. Before you apply, review a lender’s eligibility requirements. If the lender doesn’t publish its requirements, ask if prequalifying is an option.
- Loan amounts: Some lenders require that you borrow a certain amount of money. Because minimum amounts vary, choose a lender that offers the amount you need to borrow to cover your dental expenses.
- Loan terms: Term lengths vary by lender. Although choosing a longer term length can lower your monthly payments, it can also increase the interest you pay over the life of the loan.
- Fees: Some lenders charge origination fees, late fees, returned payment fees and application fees. These fees can significantly increase your borrowing cost or reduce your loan amount. In addition, some charge prepayment fees, penalizing you for paying off your loan early.
- Annual percentage rate (APR): A loan’s APR tells you how much interest you’ll pay over the life of the loan; it’s a better measurement than the interest rate because it also accounts for any loan fees.
How to get a dental loan
Applying for a personal loan to cover dental expenses involves comparing your options to get the best deal, gathering the necessary documents and then submitting a formal application once you’ve found a lender that best matches your borrowing needs.
- Research lenders and prequalify. Research lenders and compare personal loan rates and terms. Prequalifying will give you an estimate of your loan amount and interest rate.
- Formally apply with a lender. After you choose a lender, the next step is to fill out a loan application online or in person. You’ll need to know the amount you need to borrow and choose your desired loan term.
- Wait for approval. Once you have applied, the lender will review your application and decide whether to lend you money. Although approval times vary, you can sometimes be approved — and funded — the same business day you apply.
- Review and sign your loan agreement. If you’re approved, a lender will send you a loan agreement. Review the document carefully before you sign it. Afterward, the lender will issue your funds, usually as an ACH transfer directly to your bank account.
Dental financing with bad credit
Financing can be difficult to obtain when you have less-than-stellar credit, but with a little work, you can find lenders that offer financing for bad credit.
Review your credit reports
Your credit reports can contain errors that lower your credit score, so reviewing them at least once a year is a good idea. You can view each credit report for free weekly from all three major credit bureaus — Experian, Equifax and Transunion — by visiting AnnualCreditReport.com.
While checking your reports, look for discrepancies or incorrect past due or defaulted accounts. If you find errors on your credit report, dispute them with each credit bureau that lists it on your report or the creditor that reported the information. If the error is removed, it could increase your credit score.
Take steps to improve your credit
If the dental work isn’t pressing, you can spend some time and effort improving your credit score before shopping for a dental loan. Make sure to pay all your bills on time and pay down your current debt, if possible. A higher credit score can increase your chances of securing a better rate, lowering your borrowing costs.
Shop around for the right lender
Trying to find a dental loan when you have bad credit can be frustrating, but there are options if you know where to look. Some lenders like LendingClub and Avant are willing to work with borrowers with subpar credit, though your interest rates may be higher than someone with good credit.
Dental loan alternatives
When determining how to pay for dental work, it makes sense to see how you can lower or mitigate the cost before resorting to financing.
Request quotes
Not all dental offices have the same prices for the same procedures, so shop around and find a reputable dentist you trust who can do the work for a lower price. You can also try to negotiate with your dentist, though there’s no guarantee they will do your work for a reduced rate. It never hurts to ask, though.
In-house financing
Some dental offices may offer special rates depending on your circumstances, so inquire with your dental office as to whether they offer in-house financing for expensive procedures. These installment loans often come with no or low interest rates, which can save you a lot of money.
Medical credit cards
Another way to save on interest is by applying for a medical credit card. Medical credit cards cover medical and dental expenses. In some cases, medical providers may even offer special financing terms, like 0% APR credit card.
Dental schools
Many dental schools will offer dental care to the public at a reduced rate, but it can take a while to get in, as most of these schools have high demand for their dental work. Check to see if a dental school near you offers these services.
Savings
It will take longer to get treatment, but if the dental procedure you need is elective or can be put off for a while, it may be wise to save for the treatment instead of financing it. Saving the money to pay upfront will keep you from paying interest on a loan or credit card.
Bottom line
Dental work can be pricey. A personal loan is one solution to get the funding you need, but before applying, consider alternative financing options, such as in-house financing and a 0% APR medical credit card. In addition, don’t underestimate the importance of getting quotes from multiple dental providers to see if you’re getting a fair price.
If you decide that a personal loan is your best option for dental costs, compare multiple lenders. Review their interest rates, loan amounts, loan terms and all associated fees before choosing your lender.
You may also like
What is a working capital loan and how does it work?
Is dental school worth the student debt?