Prosper Healthcare Lending Review: Rates, Eligibility & Procedure Coverage

Pros Cons Fixed interest rates and loan terms No introductory 0% APR offer, unlike some medical credit cards and loans Can apply for prequalification without affecting credit scores to get an idea of potential rates Only available for certain procedures   Interest rates may be high if your credit isn’t strong   Only available if your healthcare provider accepts Prosper Healthcare Lending 

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What you need to know about Prosper Healthcare Lending

Prosper Healthcare Lending is a division of Prosper, a peer-to-peer lender. PHL offers medical loans in several specialty areas that your insurance may not cover, which include the following:

• Bariatric surgery 
• Cosmetic dentistry
• Cosmetic and plastic surgery 
• Fertility treatments

PHL’s loans are installment loans, so you’ll have a fixed rate and a set amount of time to pay off your loan.

An alternative to medical credit cards

Prosper Healthcare Lending isn’t a credit card. Instead of having an open-ended payback period, you’ll have a set loan term — up to 60 months — to pay off your debt.

If you can pay off the debt quickly, a medical credit card might be a better option. Some medical credit card issuers will offer an introductory 0% APR for a limited time. This means if you can pay off your medical debt in that intro period, you won’t pay interest.

But if you’re considering a medical credit card, watch out for deferred interest. If your credit card includes this provision and you can’t pay off your balance during the promotional period, you may be on the hook for interest on the entire original debt — not just the remaining balance.

Must be accepted by your doctor

If you’re considering how to pay for a surgery or want an IVF loan, Prosper Healthcare Lending won’t necessarily be the best solution. Before you apply, you’ll want to find out if your medical provider even accepts these loans.

If that isn’t an option, you could also apply for a personal loan through Prosper’s personal loans division — instead of Prosper Healthcare Lending. Prosper’s unsecured personal loans offer similar rates to PHL’s medical loans.

Competitive loan rates

Prosper Healthcare Lending offers a competitive range of rates. But if you don’t have strong credit, you may wind up paying a relatively high APR, or annual percentage rate.

It’s possible to check your estimated rate first with a prequalification application, which won’t hurt your credit scores.

But prequalification is conditional — you must officially apply to be approved, and your loan terms could change. And if you proceed with a formal application, the company may perform a hard credit inquiry, which can affect your scores slightly.

A closer look at Prosper Healthcare Lending

If you’re considering a loan from Prosper Healthcare Lending, here are a few other things you should know.

• Loan amounts — The company offers personal loans from $2,000 to $35,000, which can give you some flexibility if you need an expensive procedure.
• No prepayment penalty — If you want to pay off your loan early, you won’t face a penalty for erasing your debt before your loan term is up.
• Loans originated — Like its parent company Prosper, PHL’s loans are originated by WebBank.

Who is Prosper Healthcare Lending good for?

Before you decide if Prosper Healthcare Lending’s medical loans are a good fit for you, find out if your preferred medical provider partners with the company.

If it does, you’ll want to evaluate your potential interest rate and compare it to any other options. If you qualify for a credit card or loan that has an introductory 0% APR offer, and you can pay it off during the promotional period, that might make more sense.

But if that’s not in your budget, a personal loan with fixed monthly payments might be a better option, especially if the credit card charges deferred interest.

How to apply with Prosper Healthcare Lending

Once you’ve confirmed that your medical practice works with Prosper Healthcare Lending, you can check your potential rate online with a prequalification application.

If you’re ready to apply, you’ve got a few options: online, at your medical practice or over the phone. Be prepared for a hard credit inquiry on your credit reports.

The company says it will ask you for “basic information” on your application.

Not sure if Prosper Healthcare Lending is right for you? Consider these alternatives.

• CareCredit: If you need financing for a medical procedure that Prosper Healthcare Lending doesn’t cover, CareCredit may be a better fit.
• GreenSky: If you need to borrow more money than PHL offers, Greensky’s personal loans for medical needs may be worth exploring.