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A guide to dental financing

Everybody wants to have healthy teeth free of flaws like cavities. The issue is in order to have perfect teeth, it requires regular visits to the dentist. And despite the fact that this may seem like the perfect answer, nobody hurries to the dentist until it’s too late. The expense of repairing the damage at that time will be very significant.

The issue is that many of those who don’t receive routine dental treatment claim it’s because of the expense. Some people do not have access to dental insurance, and many procedures require taking money out of their own pockets, money they do not have.

In this situation, dental loans are useful. Your dental issues could get worse if you wait until you have the money for the operation. Applying for a loan and solving the issue quickly is far preferable to delaying it until it’s too late to save anything.

What are dental loans?

A personal loan used to cover dental costs is simply referred to as a “dental loan.” They often have fixed monthly payments and interest rates, just like other personal loans. Additionally, unlike a vehicle loan, which requires you to put up security, these loans are typically unsecured.

Applying for dental loans can be done online, through a bank, or at a credit union. Depending on your creditworthiness, different loans have different periods and rates.

Finding lending organizations for dental loans won’t take long. Some businesses will let you take out loans up to $40,000 to pay for major surgeries or dental operations. However, the majority of people only obtain dental loans between $5,000 and $10,000 for procedures like tooth replacement, oral surgery, or smile makeovers. You have a lot of flexibility to work with.

In case you’re wondering, it is common for people to take out a dental loan worth thousands of dollars. Consider this: which products do you use frequently? Your automobile and your teeth. Every few years, people have no trouble getting loans to buy new cars. When you consider how much you depend on your teeth, a dental loan is similar to vehicle financing in many ways.

What can you use dental loans for?

The cost of your dental procedures might not always be fully covered by dental insurance. This is particularly true if you have a high-deductible health plan. You need to find a way to pay the expenses out of pocket before the deductibles kick in. Additionally, insurance won’t pay for aesthetic dental procedures unless they cause you physical harm or a barrier (i.e., a chipped tooth or cavity filling).

Tooth extractions, cavity filling, dental cleaning, damaged tooth repair, crowns, and dental implants are a few common operations that you might use a dental loan for. Some procedures, like tooth extraction, can cost as little as $250, but if you want to add a dental implant to the mix, the cost will at least increase by $2,400.

Should you apply for a dental loan?

Dental loans can be complicated, particularly if you have a major surgery coming up. Here are some things you might want to think about doing in advance to ensure that you don’t have any hiccups.

Your credit score

The lower your annual percentage rate (APR), the better your credit score. Your prospects of getting a loan with a good interest rate will be slim if your credit score is lower than 640. You might want to contact the credit bureau to find out your credit score’s current status.

Even if your credit score is low, you may still be able to obtain a loan. However, it means you can’t be very selective about your choices. Additionally, by looking up your credit score, you might be able to estimate how much interest you will have to pay. You will be able to determine whether you can afford the loan this way.

Interest rates

If you’re getting a personal loan for dental work, your interest rate possibilities are broad. Some people can acquire loans with interest rates as low as 3.99% APR, while others have rates as high as 36%, depending on your credit score. An APR of as little as 5.74% may be offered on a $10,000 personal loan from a national bank on average, which is about one-third or less of what dental credit cards typically charge. A dental loan and a stellar credit score will help you save more money in the long run if you’re considering major cosmetic dentistry work or reconstructive surgery.

Length of loan term

Loan conditions are crucial. How much time do you have to pay the remaining balance? No interest for a year? Five years at a fixed rate? How do those repayment alternatives fit within your monthly budget and present income? If it may help you to view the larger picture, compare it to your credit card payment or monthly auto payment.

Customer service

Read the reviews of lending websites, loan suppliers, and dental credit card providers. If you constantly find negative or negative reviews, it’s recommended to avoid them and choose a different lender; otherwise, you run the danger of incurring penalties and unintended expenses.

Applying for a dental loan

Pre-qualification allows you to start the application process. This includes the subsequent actions:

Comparing lenders 

When you are pre-qualified, you are already aware of the loan kind that is most suitable for you. You might evaluate different lenders as a consequence to see if they satisfy your needs. Verify if they are able to pay the amount you need to borrow as well.

Collecting documents

You should start compiling the papers as soon as you have chosen the lender. This might be anything from recent pay stubs to bank statements that demonstrate your revenue over the previous few months. You should first inquire about what documentation they need as each lender will have their own requirements.

Applying for a dental loan

Once you have the required paperwork, you can submit a loan application. To determine if you are qualified or not, the lenders will conduct a hard inquiry on you. Remember that this will appear on your credit report and could potentially have an impact on your credit score, particularly if you’ve recently taken out a lot of loans.

Alternatives to a dental loan

Dental loans are excellent, but if your credit won’t allow them, you can try some other options.

In-house financing

Ask your dentist whether they provide in-house financing for pricey procedures as some dental offices may offer special rates depending on your situation. You can save a lot of money by using these installment loans, which frequently have no or low interest rates.

Dental schools

The public can receive dental care at many dental schools for a discounted rate, however admission can be difficult because of the strong demand for these institutions’ dental services. See whether one of the local dentistry schools provides these services.

Save for the procedure

Although it will take longer, it might be a good idea to save up for your dental care rather than getting financing if the surgery is elective or can be postponed. You won’t have to pay interest on a loan or credit card if you have the cash saved up to pay in full.

Final thoughts

Dental work can be intimidating, particularly if you lack the funds to pay for it. Taking out a personal loan is one way to receive the money you require. However, make sure you take into account alternative financing possibilities, such as in-house financing and 0% APR medical credit cards, before you apply for one. Here at The Smile Lounge in Tigard, we offer in-house financing and we are also partnered with Sunbit. Call, text, or send an email to learn more. 

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