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- Dental loans are personal loans that you can use to cover costly dental procedures and treatments.
- You can finance dental work through banks, credit unions, and online lenders.
- Responsible borrowing and repayment of dental loans can improve your credit score.
Affording everything you need for dental care isn’t easy. Whether you have dental insurance or not, some dental procedures simply aren’t in the budget.
Fortunately, you may be able to finance dental work. You can take out a dental loan or pursue several other options to spread the cost over time.
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What are dental loans?
Dental loans are personal loans that you take out for the purpose of paying for dental treatment.
Dental loans are approved based on your creditworthiness, including factors like your credit score, employment status, and income. They’re typically unsecured loans, with no collateral needed. You can use a dental loan to help pay for major expenses like root canals, crowns, and cavity fillings. As with any personal loan, a higher credit score will usually get you a lower interest rate.
A big advantage of a dental loan is that most providers don’t require you to specify it being used for dental work. While you may direct all of those funds toward dental expenses, you’re usually free to use some of it for other needs. You might receive more flexible repayment options than you’d get from other financing.
Factors to consider before applying for a dental loan
While dental loans are used for necessary work to keep your teeth and gums healthy, it’s still important to pay attention to your borrowing terms. If you take out any kind of loan, examine your available funds and make a repayment plan first.
“No matter how you pay for your dental work, understand all the terms and conditions before committing,” says Leslie H. Tayne, Esq., the founder and head attorney of the Tayne Law Group.
You can talk to your loan provider about what kind of terms you need to be able to repay it on time. For especially costly dental work, you may need a longer repayment period, for example. Loan providers at banks and credit unions should be able to work with you to create a loan that works for your circumstances.
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How do dental loans work?
Taking out a dental loan means looking for a personal loan at a reasonable interest rate that you expect to be able to pay off over time. Collateral usually isn’t required with these types of loans, but providers will evaluate your credit history and other factors when determining your qualifications as a borrower.
Getting a personal loan can be preferable to options like provider financing plans because you aren’t locked into spending the funds solely on dental work. For example, if a minor home repair comes up, you could theoretically use some of the personal loan for that versus only for dental procedures.
“Since you can use funds from a personal loan to cover nearly any expense, most lenders don’t differentiate medical loans from general personal loans,” Tayne explains.
Getting a dental loan is often no different from getting a personal loan, though some providers may offer benefits when the loan is for a medical reason. Here are some of the key factors to understand about dental loans:
- You borrow a lump sum of money.
- Lenders set a fixed interest rate, fixed monthly payment, and fixed repayment period.
- Your loan is likely unsecured.
- You aren’t locked into how you spend the loan proceeds.
- Getting prequalified by several lenders enables you to choose the best option.
There is a possibility that a lender would charge a different APR based on your reason for borrowing, while many have uniform rates for personal loans. That’s why it’s so important to shop around to compare your dental loan options.
Are dental loans different from personal loans?
A dental loan is a personal loan marketed for use to cover dental expenses.
“Some lenders may differentiate or specialize in dental or medical loans, while others simply categorize them as personal loans,” says John Owens, executive vice president of Monterey Financial.
A personal loan for dental expenses can be appealing due to the flexibility. Borrowers have the freedom to choose how to spend the proceeds. Of course, presumably you’ll use all of the funds to pay for your root canal, crowns, or other dental services.
Don’t worry that you need to find a loan specifically for dental work. Even if a lender doesn’t advertise dental work as a loan purpose, you’ll likely be able to get a loan and use it to pay for whatever you want, as long as you meet the qualifications.
Who offers dental loans?
Banks, credit unions, and online lenders all provide dental loans.
When researching your loan options, focus on the interest rates, terms, and maximum borrowing limits that lenders can provide. You might start with your current financial institution and find out what your personal loan options are. Some banks offer loans to people without an existing account, but others don’t. Look into credit unions and online lenders as well.
When you start shopping around for a dental loan, be prepared to get at least three options to compare. If you prequalify for a personal loan with multiple lender, you can find out the interest rates, repayment terms, and other details about the loans they might offer you without affecting your credit score.
By reading customer reviews of providers, you can gain a sense of how the company works. You can also consider whether or not they offer in-person support. Choose your dental loan based on a combination of those factors and what matters most to you.
A few of the larger dental loan providers include:
- SoFi: a good lender for those with strong credit; minimum loan amount of $5,000
- LightStream: a good lender for those with strong credit; minimum loan amount of $5,000
- LendingClub: a solid option for those with weaker credit, with a minimum loan of $1,000
What can I pay for with a dental loan?
A dental loan can mean the difference between enduring dental pain and getting relief, and the funds can go toward any type of dental expenses.
Here’s an estimated range of costs for common dental services and procedures, according to CareCredit:
- Dental implants $3,000-$4,500
- Dental veneers $925-$2,500 per tooth
- Dental crown: $500-$3,000
- Tooth extraction: $219-$4,000
- Dental bonding: $90-$1,000
- Root canal: $300-$2,000
- Basic to mid-range dentures: $600-$3,000
- Premium dentures $4,000-$8,000
- Full mouth periodontal surgery treatment: $4,000-$10,000
- Full mouth dental reconstruction: $30,000-$150,000
If you have dental insurance, you can use it for covered procedures. But if you’ve met your deductible or a procedure isn’t covered, loans may be necessary. Dental care expenses can get into devastating totals and may stem from emergency circumstances. This is why dental loans and other financing options are so vital.
How to apply for a dental loan
If you need a dental loan, here are the typical steps to take:
1. Check your credit score
In order to qualify for a dental loan, as for any personal loan, your credit score is key in determining your eligibility. You can check your credit score for free through most credit card accounts, or check with one of the credit reporting agencies.
2. Pull a credit report if anything looks off
If your credit score seems lower than expected, you may want to get a full credit report. This can show you all of the credit issued in your name, so you can ensure that there aren’t any negative marks that don’t belong there.
3. Check whether your bank offers dental loans
Wherever you normally bank, see if you can get a personal loan or specific dental loan there and what rate you’d qualify for. Check other online and in-person lenders as well. Try to get information on whether you prequalify from your bank and other lenders before proceeding.
4. Research cost of your dental work
Find out from your dentist or dental specialist what your likely total cost for dental procedures will be. This helps to determine the amount of your loan (you may want to add on another 15-25% in case of unexpectedly higher charges).
5. Gather paperwork
For most personal loans like dental loans, you’ll have to gather pay stubs, recent tax returns, rent or mortgage history, financial account documentation, and a photo ID.
6. Get prequalified for several loans
If possible, get prequalified by lenders you’ve chosen so your credit score won’t be affected. This can help you see the likely rate and loan terms you’ll receive if you’re fully approved by that lender.
7. Examine the terms of the loan
Look over the dental loan terms and make a plan for paying it back. Be sure to understand the interest rate and when payments will begin and end. Only accept the loan if it’s a reasonable agreement.
Dental loan pros and cons
When you need dental work done, it can be tempting to put it off due to finances, but the issue could grow worse. Any loan has pros and cons to consider, so keep these factors in mind.
Dental loan alternatives
Taking out a dental loan isn’t your only option when you’re facing high dental bills. You might also consider putting it on one or more credit cards, checking with your provider about their in-house financing program, or using a medical credit card.
Medical credit cards: These are credit cards specifically for medical purposes including dental work. However, the Consumer Financial Protection Bureau (CFPB) warns consumers that these cards can actually increase financial stress due to high interest rates and frequently deferred interest payments.
0% APR credit cards: If you’re able to open a credit card with an introductory 0% APR, this can be a valid option fof dental financing as you won’t be charged interest during the promotional period. However, be aware of when the rate will increase so you can transfer the balance to a new 0% card or pay it off.
Dental provider financing: Your dentist may offer in-house financing for dental work. Depending on your provider, this can be a good option. However, always compare several options and don’t default to the dental office’s financing program unless it’s the best.
As Owens notes, the best choice of dental financing depends on your financial situation, loan terms, and your ability to repay. Do your due diligence to understand your loan terms and options before settling on a dental loan.
Dental loan FAQs
Qualifying for a low-interest dental loan generally requires a good credit score and solid payment history.
A credit history and proof of income will be needed in order to apply for a dental loan. Most dental loans are unsecured personal loans, so collateral isn’t needed.
Yes, the way you manage a dental loan will affect your credit score. The initial soft credit pull won’t impact your credit, but if you make installment payments responsibly, your credit score will increase. Conversely, missed or late payments will result in a drop in your credit.
Dental work costs can be astronomical, so dental loans are a bridge enabling you to get dental work done without breaking the bank. These personal loans often have flexible terms so that you spread this cost over years rather than paying all at once.
