What You Should Know About Plastic Surgery Financing

From New York to Newport Beach, plastic surgery financing is sweeping the nation. Credit-conscious consumers balk at the notion of getting a loan for cosmetic work, but for others, the option to spread the costs of plastic surgery over several months is highly attractive. For one, plastic surgery financing can save you money by allowing you to get multiple procedures during a single visit, rather than coming back periodically whenever you have the cash. But as with all credit instruments, plastic surgery financing can be a double-edged sword. Take note of the following:

Your Credit History Matters

How much you’ll pay in interest for your plastic surgery financing depends on a number of factors, but your credit history is the biggest. If you have a history of delinquencies, low credit-to-debt ratio or a low credit score overall, you may end up with a higher interest rate, a smaller line of credit, and stricter terms.

Healthcare Credit is an Unsecured Loan

Financing breast augmentation, liposuction or other cosmetic surgery procedure will always be an unsecured loan. Why? Simple: the bank can’t repossess a tummy tuck or facelift. Because of the greater risk involved for the lender, unsecured loans will always carry higher interest rates and more stringent terms than secured loans. If you pay on time and don’t default, a secured loan could cost you less if you plan on carrying a balance beyond the interest-free promotional period. But if you default on a secured loan, you lose your collateral (i.e. your home or your car). Choose wisely.

Read the Fine Print

Many nationwide lenders that offer financing for plastic surgery offer zero percent or no interest financing. Make sure you read the fine print first, however. These offers typically require you to pay off the entire balance within a certain period of time, such as six months. If you fail to do so, you are levied an exorbitantly high interest rate – think 20 percent or more—on your balance dating back to the origination of the loan.

Bottom-line: Approach plastic surgery financing much like you’d get a new credit card offer in the mail. Shop around, make sure that the lender is reputable and crunch the numbers for the best and worst case scenarios in order to get a realistic idea of how much your credit will cost you.

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