Find and compare 7 types of loans for dental work in SA
Dental care is very important, and yet visiting the dentist can be expensive. If you don’t have enough cash or insurance cover, you might be looking for loans for dental work or loans for cosmetic dentistry. Here are 7 financing options to choose from and the best way to compare them.
7 ways to pay for your dental procedure
Unsecured personal loans
Most dental loans are personal loans that can be used to pay for various procedures and even related expenses. Borrowing limits are typically between R2000 and R250 000 while loan terms vary mostly between 1 year and 5 years. Unsecured personal loans have interest rates that are a bit higher than those for secured loans because they require no collateral.
- Pros. No risk of losing your assets (might be your house or car) if you default. Also, most personal loans have very few restrictions, and this means you can use them for a variety of purposes, including root canals, tooth removal, cleaning or filling.
- Cons. To reduce the risk they take on, lenders might limit how much you can borrow unless you have a clean credit report and a high income level.
Secured personal loans
Secured personal loans are guaranteed by the asset you put up, which is typically your house or home.
- Pros. They have lower interest rates because there is less risk for the lender. The lender can also allow you to borrow more or choose a longer loan term.
- Cons. You risk losing the asset you put up as a guarantee when you default.
Short term loans
Short term loans like payday loans offer low amounts – between R500 and R8000 – that have to be paid back by the end of the month or within 30 days, 6 months, or 12 months depending on the lender. They’re a good option if you’re looking for bad credit loans for dental work.
- Pros. They’re suitable for emergency dental visits. If you need an urgent tooth extraction, some payday lenders advertise an easy application process that delivers the cash in your bank account in less than 10 minutes. Furthermore, no credit checks are carried out.
- Cons. The high interest rates can end up making your dental procedure more costly if you don’t pay the loan off as quickly as possible.
Medical loans
Some lenders offer medical loans that are specifically used to pay for dental work. In such cases, you might be required to first get a quote from your dentist. After the procedure, the lender pays any outstanding amount to the dental practitioner.
- Pros. These lenders often have specialist knowledge of how dental loans work, which makes the financing process easier.
- Cons. Typically, the loan is paid directly to the dental practitioner. This restricts you from using it for other purposes related to your procedure, for example, transportation.
Credit card
If you have a reasonable limit on your credit card, you can use it to settle your bill before or after your appointment.
- Pros. You can shop around for a credit card with a 0% starting interest rate to help you avoid the high rates associated with credit cards.
- Cons. Low limits mean you might not be able to finance the full cost of your dental work.
Overdraft
If you have an overdraft protection agreement with your bank, you can still draw money from your account to pay for dental work, even when your balance becomes low. You then repay the overdraft plus interest.
- Pros. If the agreement is already in place, you can withdraw funds immediately from your bank to pay for any emergency dental work without having to apply or wait first.
- Cons. Like credit cards, overdrafts have limits, so they can only be used to settle smaller dental bills.
Negotiate an in-house payment plan with your dentist
Some South African dentists have a flexible approach which enables you to have dental work done that you can later pay for in smaller instalments.
- Pros. You can find interest-free, in-house financing that is very affordable, especially if your dental insurance is not covering the procedure.
- Cons. This option might only be reserved for long-term customers who have ongoing dental work that needs to be done.
Important factors you can use to compare loans for dental work
- Loan requirements. Do you meet all the loan requirements? For example, your salary or credit score has to be above the minimum amount for you to qualify.
- Interest rate. Find the most competitive or lowest interest rate, whether it’s a fixed or variable rate loan. Also, look for a lender who is open to discount negotiations.
- Annual percentage rate. Your loan’s APR will include your interest rate and other fees or charges. Comparing APRs is the best way to find a loan with the lowest total cost.
- Response time. How fast do you need the funds? If you need to visit the dentist urgently, then you want a lender that at least offers same day loans.
- Loan restrictions. Some lenders might not allow you to use the funds for other purposes. Others will not allow you to make early or additional payments unless you pay a penalty fee.
Dental loans calculator – Get a monthly payment that works for you
You might have heard it plenty of times before but only taking out a loan you can afford is also crucial if you are planning on dental financing. Use the dental loans calculator from CompareLoans to find out how much you need to borrow, the best loan term, monthly payments and finally the best lender.
Simply enter the loan amount and term before clicking calculate. Next, check the results displayed in our comparison tables.
Apply for a dental loan the easy way
Before you finance any dental work, check to see if you meet the following general requirements:
- Be over the age of 18;
- Regular, monthly income;
- Bank statements and payslips – proof of income; and
- A good credit score.
If all is in order, you can make an easy and fast online application by first comparing the lenders featured in our comparison tables. Once you have made your decision, click the “Go to Site” button to visit the lender’s website. Fill in the online form and upload the necessary documents. The lender will contact you to finalise the terms and conditions of your loan agreement after you submit your online application.
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