5 Dental Loans: Compare Financing Options for Dental Procedures

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Factors to compare between personal loans

Annual percentage rate. A loan’s APR is typically higher than its interest rate because it encompasses the entire cost of a loan, including the interest rate and any fees. Compare different lenders’ APRs to find the least expensive loan.

Fees. Find out any additional fees the lender charges before taking out a loan. For example, some lenders charge a late-payment fee and others charge an origination fee. An origination fee is typically 1% to 8% of the loan amount and is reflected in a loan’s APR.

Borrower requirements. Some lenders have a minimum income or credit score requirement. Or there may be a limit to the amount of debt you can have, expressed as a debt-to-income ratio.

Time to fund. While some lenders offer same-day funding, others can take up to seven days to fund. You can speed the application process by gathering all the required documents and promptly responding to lenders' questions.

» MORE: Medical loans for health care expenses

Pre-qualify for a dental loan

Pre-qualifying for a loan lets you see a loan’s terms, interest rate and monthly payments so you can determine whether it’s right for you. You can pre-qualify with NerdWallet to see which loans are available to you and find the one with the lowest APR.

Alternative dental financing options

Personal loans are low on the list of inexpensive ways to finance dental work, says Minneapolis-based financial planner and owner of Abundo Wealth, Eric Simonson. He says it’s important to weigh other options before going with a personal loan.

Here are some other ways to fund dental work.

Finance through your dentist. Some dentists offer an in-house payment plan that you can sign up for when faced with a big bill. Unlike regular dental insurance, you can take advantage of these plans when you learn you need expensive work done, Simonson says. They can be a good option if you don’t have insurance or would rather make monthly payments toward the procedure.

Negotiate. The cost of dental work isn’t regulated by the government, so there may be room for negotiation if you’re quoted a price that you think is too high.

Look around. Compare prices across different dentists in your insurance network to see whether the procedure is offered at a lower price elsewhere.

» MORE: 6 ways to pay off your medical bills

Dental school. Dental schools offer procedures at a reduced price so students can get experience under the supervision of skilled dentists. You can check the American Dental Association’s list of dental programs to see whether there’s a school near you.

A medical credit card. Some offices offer financing through a medical credit card, like CareCredit. CareCredit lets you pay back purchases of $200 or more at 0% interest as long as you pay the full balance by the end of the term.

If you don’t pay the balance by the end of the term — CareCredit offers short-term financing for 6, 12, 18 and 24 months — you’ll be retroactively charged all of the interest. New accounts come with a 26.99% interest rate, according to the company’s website.

The APR on longer term financing with CareCredit depends on the purchase amount and the term.

Save for cosmetic work. As a general rule, Simonson says, incurring debt for cosmetic work is unnecessary unless you’ll somehow benefit from it financially in the future. In these cases, it’s best to save for the procedure to avoid racking up credit card debt or taking out a high-interest loan.

Saving money in an emergency fund can also give you a safety net if you ever need to pay for an urgent procedure.

» MORE: Personal loans for cosmetic work