Money is not a luxury but a necessity that allows you to live the way you want and maintain that lifestyle for good. So you need cash to buy what you need and want, as well as to pay the bills, rentals, and all other expenses for current necessities.
One of the items that should be in everyone’s budget is health and self-care. These include regular visits to the doctor and dentist, preventive examinations, and emergencies that can happen when you least expect them.
Good dental care certainly is crucial, but the fact is that many interventions are out-of-pocket expenses, especially if you don’t have good dental insurance. That can be a significant impact on your budget, especially when your current situation is not great.
So what to do when you need to remove a nerve or get veneers? If you can’t afford to pay for these dental procedures outright, you can use lån til tannlege (Dental Loans) to finance different dental interventions over time.
What Are Dental Loans?
Dental loans can be advertised as specialized financial arrangements. But in most cases, these are personal loans you can use for any purpose. You apply for these financial arrangements at lenders or lending platforms that’ll connect you with direct lenders and ask for a certain amount. If approved, you get it as a lump sum in your bank account.
The amounts you can borrow can vary from several hundred to several hundred thousand dollars. You should always borrow only as much as you need to avoid overindebtedness. But if you’re a responsible borrower, you might ask for a dental loan with extra cash for other necessities.
As for the tenure, it can go up to seven years, depending on how much you borrow. You must pay installments (principal plus interest) over a set number of months. Some lenders offer you to prepay your dental financing or to increase your installments to repay your debt faster. This option shouldn’t carry additional costs, but some companies still charge early repayment fees.
Dental loans are handy but not always the best option to pay for your dentist’s work. If you ask for too much or have a below-average credit score, this financial arrangement can be quite costly. So you can also look for alternative financing methods such as asking your dentist about their payment options, going for procedures in dental schools, or getting a medical credit card.
When Getting a Dental Loan Is a Good Idea
If you need to do some cosmetic or prosthetic work on your teeth, dental loans can be a lifesaver. You can use them to finance costly interventions like teeth aligners, braces, veneers, or surgical teeth removal and implant installation.
Before choosing a lender and the best lending terms, it’s good to know your financial situation and how to compare several deals. The first one implies knowing your credit score, income, and ability to repay the debt within the agreed time.
If you have a solid income and credit score above 700, you’re eligible for most dental financing options. Lenders will have no problems approving your application, so you can get a fast response after they do a brief credit check.
Visit the following page to learn how lenders review your credit:
https://www.experian.com/blogs/ask-experian/how-lenders-view-your-credit/
On the other hand, bad credit might limit your options for low-interest loans. You can get an arrangement with a higher interest rate or shorter repayment time. So think about using a secured personal loan instead or getting a co-signer, which will bring you more favorable lending terms.
Also, it’s good to pre-qualify at online lenders to see which criteria you meet and whether it’s possible to get a favorable deal. This way, you can avoid hard inquiries and further ruining your credit. Plus, you’re not obliged to accept any offer if they don’t suit you.
How to Choose the Best Dental Loan
As for the factors that’ll affect loan choice, let’s start with interest rates. Since dental loans are unsecured, lenders ask for no collateral. But in turn, they’re free to charge a bit higher interest rate and thus compensate for the possible risk of failing to repay debt. These rates usually go from 6% to 36%, and you can see them on their websites.
Next, you have to think about the overall loan cost. It includes interest and all fees involved with the money you borrow. These expenses differ from lender to lender. These can be origination fees, monthly maintenance, penalties for prepayment or late payment, etc.
Also, you should consider the eligibility criteria and specific requirements, like a minimum income or credit score. In general, lenders don’t pay much attention to how much your income is as long as it’s regular. But they might be strict by asking you to have a credit rating of 700 or more, while others are more flexible.
Finally, compare the tenures of different dental loans. Depending on how much you borrow, you can decide on a short-term arrangement you can pay back in a few weeks. Or you can go with a long-term loan with tenure of a few years. In general, the latter can be a good option if you strive to lower installments. But these will result in paying more interest over the loan lifetime.
How to Apply for a Dental Loan
After reviewing the offer of dental financing options and selecting reliable and reputable lenders, it’s time to fill out the application. It’s good to prepare all necessary documents, like an ID to prove your identity, a paycheck, and a bank report as proof of your income.
Prequalify
Online lenders provide simple forms where you enter only basic information. Plus, you don’t have to fax your papers, as most documents can be submitted online, which speeds up the process.
As said, prequalification at several different lenders give you a chance to find a loan that meets your needs and budget. Based on some basic information and the amount you ask for, they can give you an estimate of how much the loan might cost you.
Fill Out the Application
After selecting the best deal, you have to fill out the formal application. You provide your personal and financial details to prove your income, stable employment, and overall ability to repay the debt. Also, now you choose the final amount you ask for and decide on the loan term.
The final step before signing the loan agreement is a final review of your application. The response times can vary, as some lenders can approve you within an hour while others will do that within the same business day. Some even work on weekends, which is good for a dental emergency.
If lenders approve your application, you’ll get an agreement as soon as possible. Read it carefully and assign it only when you fully understand it. After that, lenders send money to your bank account, and you’re free to use it for whatever you want.
Many lenders provide different options for dental financing and thus allow you to undergo costly dental or cosmetic procedures. Still, not all loans will be the best choice for you, so you are free to shop around for the most favorable deals and lending terms that suit you best.
