8 oct 2026 ·
Advertiser: Every figure comes from the lender’s own website or a named independent source, and our method is explained at the end of the article.
A large medical bill can arrive when you least expect it, and it can feel urgent. A personal loan can help, but it isn’t always the best first step. Many patients can lower or spread out what they owe at no cost before they ever need to borrow.
Below we cover the free options to try first, then compare six lenders for medical expenses, using terms each published as of October 8, 2026.
Before you borrow: try these first
- Check the bill for errors. Ask for an itemized bill and compare it with your insurer’s explanation of benefits. Look for duplicate charges or services you didn’t receive.
- Ask about financial assistance. Nonprofit hospitals must have a written financial assistance policy that explains who qualifies for free or discounted care and how to apply, under IRS rules (section 501(r)). Eligible patients can’t be charged more than the amounts generally billed to insured patients for emergency or medically necessary care.
- Request a payment plan. Many hospitals and providers will spread a bill over several months, often with no interest. Ask before you sign up for any financing.
- Negotiate. Ask whether there’s a discount for paying in full or for paying without insurance.
- Appeal insurance denials. If your insurer refused a claim, you have the right to appeal.
If you still need to borrow after these steps, a personal loan with a fixed rate and payment is often a safer choice than a medical credit card with deferred interest. We explain why below.
Our top picks at a glance
PenFed is our top pick for most medical bills: it charges no origination fee, caps its APR at 17.99% and lends as little as $600. For larger bills or weaker credit, the other lenders below fill the gaps.
| Lender | Best for | APR range | Origination fee | Loan amounts | Funding speed |
|---|---|---|---|---|---|
| PenFed Credit Union | Best overall: low APR cap, small loans | 6.09% – 17.99%* | None | $600 – $50,000 | As soon as the next day |
| SoFi | Large bills with good credit | 6.99% – 35.49%** | None on standard offers | $5,000 – $100,000 | Same day, typically |
| Happen Bank (formerly LendingClub) | Mid-size bills, low fees | 5.96% – 35.99% | 0% – 8% | $1,000 – $75,000 | In as little as 24 hours |
| Upgrade | Fair credit | 7.74% – 35.99% | 1.85% – 9.99% | $1,000 – $50,000 | Within 1 business day of verification |
| Upstart | Limited credit history | 6.3% – 35.99% | 0% – 12% | $1,000 – $75,000 | Next business day |
| OneMain Financial | Lower credit scores, in-person help | 11.99% – 35.99% | 1% – 10% or $25 – $500 | $1,500 – $30,000 | As fast as 1 hour after closing |
*PenFed’s range is reported by NerdWallet and includes a 0.25% autopay discount. **SoFi’s range includes its autopay and member discounts; its loan amounts are reported by NerdWallet. All other figures come from each lender’s website, checked October 8, 2026.
The best loans for medical bills, reviewed
1. PenFed Credit Union — best overall for medical bills
Medical bills are often a few thousand dollars, and PenFed lends as little as $600 with no origination or early payoff fees. Its maximum APR of 17.99%, as reported by NerdWallet, is far below the 35%-plus ceilings at most online lenders. Membership is open to residents of all states with a $5 deposit, and funds can arrive as soon as the next day.
- Pros: low APR cap, no origination fee, small loans available, co-borrowers allowed
- Cons: you must join the credit union; terms up to 5 years; approval can take a day or more
2. SoFi — best for large bills with good credit
For a surgery or hospital stay that runs into five figures, SoFi lends up to $100,000 with no mandatory fees. You can check your rate with a soft pull, and most borrowers get their money the same day if they sign by 5:30 p.m. ET on a business day.
- Pros: high loan limit, no mandatory fees, same-day funding typical, rate discounts
- Cons: $5,000 minimum; usually needs good credit
3. Happen Bank (formerly LendingClub) — best for mid-size bills with low fees
Happen Bank lends from $1,000, and its origination fee can be 0%. It says most members are approved within a few hours and money can arrive in as little as 24 hours. Joint applications are allowed, which can help if a spouse or partner has stronger credit.
- Pros: low starting APR, fee can be 0%, $1,000 minimum, joint applications
- Cons: fee can reach 8%
4. Upgrade — best for fair credit
Upgrade accepts fair credit and offers terms from two to seven years, so you can keep payments manageable on a big bill. You can lower your rate with autopay or by securing the loan with your car.
- Pros: fair-credit friendly, wide term range, joint and secured options
- Cons: origination fee of at least 1.85%
5. Upstart — best for limited credit history
If you’re young or new to credit, Upstart’s model looks at your education and employment as well as your credit history. It funds the next business day if you accept your loan by 5 p.m. ET on a weekday.
- Pros: considers more than your score, next-day funding, fee can be 0%
- Cons: fee can reach 12%; only 3- or 5-year terms
6. OneMain Financial — best for lower credit scores and in-person help
OneMain has no required minimum credit score, according to NerdWallet, and more than 1,300 branches. With an eligible debit card, you can get your money as fast as one hour after closing.
- Pros: accessible with lower scores, very fast payout, secured and joint options
- Cons: highest starting APR here (11.99%); origination fees; not available in every state. OneMain faces a 2026 lawsuit from 13 state attorneys general over optional add-on products, which it denies, so decline any add-ons you don’t need.
Personal loan vs medical credit card vs payment plan
| Option | How it works | Typical cost | Main risk |
|---|---|---|---|
| Provider payment plan | The hospital or clinic splits the bill into monthly payments | Often no interest | Plans may be short; missed payments can go to collections |
| Personal loan | Fixed-rate loan from a lender; you pay the provider | Average APR 15.16% (excellent credit) to 23.77% (fair credit) | Interest and possible origination fee |
| Medical credit card | A card offered at the provider’s office, often with a «no interest if paid in full» promotion | 26.99% APR on typical cards, per the CFPB | Deferred interest charged back to day one if not paid in full in time |
Personal loan averages are from NerdWallet (October 2026). The medical credit card rate is from the CFPB’s May 2023 report.
How deferred interest works
Many medical credit cards offer a promotion like «no interest if paid in full in 12 months.» That’s not the same as 0% APR. Interest builds up in the background from the day you charge the bill. If any balance is left when the promotion ends, all of that interest is added at once.
The Consumer Financial Protection Bureau found that patients paid about $1 billion in deferred interest on nearly $23 billion of medical purchases between 2018 and 2020. It also found these cards are sometimes offered when insurance or a hospital’s financial assistance program could have covered the care (CFPB report).
Real cost example: a $5,000 medical bill
| Option | Monthly payment | Total interest | Notes |
|---|---|---|---|
| 0% provider payment plan, 12 months | About $417 | $0 | Best option if offered |
| Medical credit card, 12-month deferred interest, $400/month | $400 | About $756 | $200 left after 12 months triggers all deferred interest at 26.99% |
| Medical credit card, paid in full within 12 months | About $417 | $0 | Only if you never miss the deadline |
| Personal loan, 2 years at 17.99% (PenFed’s maximum) | About $250 | About $990 | Fixed payment and end date |
| Personal loan, 2 years at 15.16% (excellent-credit average) | About $243 | About $828 | Fixed payment and end date |
| Personal loan, 2 years at 23.77% (fair-credit average) | About $264 | About $1,331 | Fixed payment and end date |
We calculated these figures with standard formulas; the deferred-interest figure is an estimate based on a declining balance. Origination fees, if any, would add to the loan costs.
The lesson: a 0% payment plan beats everything. A medical credit card is only cheap if you’re certain you’ll pay it off in time. Otherwise, a fixed-rate personal loan is more predictable.
Medical debt and your credit report in 2026
Unpaid medical bills are treated differently from other debts on credit reports, thanks to voluntary policies the three national credit bureaus (Equifax, Experian and TransUnion) adopted in 2022:
- Medical bills less than a year past due aren’t reported.
- Paid medical collections are removed from your report.
- Medical debts under $500 aren’t reported, whether paid or unpaid.
A broader federal rule that would have removed most medical debt from credit reports never took effect. A federal court in Texas vacated it in July 2025. The bureau policies above remain voluntary, and the bureaus could change them. About 15 states have their own laws limiting medical debt reporting (The Money Overview, September 2026).
Why this matters before you borrow: once a medical bill is paid off with a personal loan, it’s no longer medical debt. It becomes a regular loan that is reported every month, and a missed loan payment can hurt your credit. Before turning a medical bill into a loan, make sure you’ve used the free options above.
How to get a loan for medical bills
- Confirm the final amount you owe after insurance, financial assistance and any negotiated discount.
- Prequalify with a few lenders. Most let you check your rate with a soft credit pull that doesn’t affect your score.
- Compare APRs and total cost, not just the monthly payment. The APR includes any origination fee.
- Borrow only what you need. If the lender charges an origination fee, remember it comes out of the loan.
- Pay the provider directly as soon as the money arrives, and get a receipt showing a zero balance.
- Set up autopay to avoid missed payments, and to get a rate discount at lenders that offer one.
How we chose these lenders
We looked at lenders that offer personal loans nationally and suit typical medical expenses. We ranked them on five factors:
- Cost (35%): APR range, maximum APR and origination fees
- Loan fit (20%): minimum loan amount, since many medical bills are a few thousand dollars, and term options
- Access (20%): credit requirements, prequalification and joint options
- Speed (15%): how quickly funds are sent
- Transparency (10%): whether rates and fees are clearly published
All figures come from each lender’s official website, checked on October 8, 2026. Where a lender’s page didn’t show a figure, we cite the independent source that reports it. We didn’t apply for these loans ourselves. We review this list at least once every quarter.
Frequently asked questions
Should I use a personal loan to pay medical bills?
Only after you’ve checked for errors, asked about financial assistance and requested a payment plan. If you still need to borrow, a fixed-rate personal loan is usually more predictable than a medical credit card with deferred interest.
Can I get a loan for medical bills with bad credit?
It’s possible. OneMain has no required minimum score, according to NerdWallet, and Upstart weighs factors beyond your score. Expect a higher APR, and compare the cost with a provider payment plan first.
Do nonprofit hospitals have to offer financial assistance?
Yes. Under IRS section 501(r), nonprofit hospitals must have a written financial assistance policy that explains eligibility and how to apply, and must make it widely available, including online and in the emergency room.
Are medical credit cards a good idea?
They can work if you pay the full balance before a deferred-interest promotion ends. If you don’t, all the interest from the start is added. The CFPB found patients paid about $1 billion in deferred interest from 2018 to 2020.
Does medical debt show up on my credit report?
The three credit bureaus don’t report medical debts under $500, paid medical collections, or medical bills less than a year past due. These are voluntary policies; a federal rule to remove more medical debt was vacated in 2025.
What’s the cheapest way to finance a medical bill?
A 0% payment plan from your provider is usually cheapest. Among loans, lenders with no origination fee and a low maximum APR, such as PenFed, tend to cost less.
Disclaimer
This article is for general information only and is not financial, legal or medical advice. We are not a lender or a financial advisor. APRs, fees and requirements shown are those published by each lender, or reported by the sources cited, on the date above and may change at any time. Your actual offer depends on your credit, income, state and other factors. Rules on medical debt and credit reporting can change; check current rules in your state. Always read the full loan agreement and compare several options before you borrow.