Tuesday, January 28, 2025

Is Paying For Surgery in Installments Bad For Credit?


Let's face it, surgery can be expensive. An investment such as surgery requires in-depth decision-making and a reflection on your priorities. If you are based in locations where healthcare is not state-funded, you often don't have a choice to spend thousands on private medical care

Or, if you are based in the UK and are seeking plastic surgery in London, this is not covered by the NHS, and you may need to pay a large sum.

With all these things considered, people often resort to finance to pay for their treatments. If you have never used finance options to pay for medical care, it's natural to feel cautious about how this might impact your credit score

In this blog, we will share the pros and cons of using finance to cover your surgical fees. Remember to put yourself first, and don't let the opinions of others influence your decision-making.

The Pros Of Using Credit


Allows you to spread the cost


Firstly, one of the main pros of using credit is that it allows you to spread the finance cost. Paying for surgery in one sum may lead to you paying £10,000 in one go. 

For some, this cost may be achievable, but for others, this can be their life savings. For example, if you are looking to retire and need this money to allow you to relocate, this can halt your plans and require several years to regenerate this amount. 

Spreading the cost across and agreed terms will allow you to manage your outgoings effectively, leaving you with enough money to get by.




Variable terms


Another benefit of using finance to fund surgery is that there are variable terms available. By this, we mean lenders can differ their payment terms to suit your current affordability. For example, if you require just 12 months to spread the cost, this will likely be an option for you. 

Some lenders may even have extended payment terms up to 6 years, allowing you to continue your day-to-day without the thought of a lump sum needing to be paid.

Automated payments


Another pro of using finance to fund surgery is the process is often seamless, with automated payments. A key element of using finance is your ability to pay back the required amount monthly. 

Direct debits can be put in place to allow automated payments, leaving you peace of mind that you are paying your finances on time and gradually paying back the loan.

There are medical-specific lenders


The process of finding a credible lender can be difficult and time-consuming. Your medical practitioner whom you plan to have your surgery with will potentially have a credible lender they work with that specialises in healthcare finance.

Paying on time can improve your credit


If you don’t currently have credit (e.g. your mortgage is paid off/ you don't have anything financed), using finance and paying on time can improve your credit score. 

This is beneficial, especially if your credit score has dropped and you’re looking to relocate in retirement. Showing a successful history of repayments will give you a better chance of being considered for finance in other areas.




The Cons Of Using Credit


High interest for missed payments


Finance is not simply ‘free money’. If you wish to see credit for surgery, you need to treat it as if you’re paying a close friend their money back. Payments need to be made on time, in the full amount, and sometimes even in excess if you can. 

If you miss one of your monthly repayments, you can expect high-interest charges. These charges will keep on accumulating if you fail to make payments, so be sure that you can pay the finance back each month before considering credit.

An additional monthly expense


What are your current monthly expenses? Do you have a mortgage to pay? Car finance to fund? And what percentage of your wage do your bills currently account for? Be sure that you can afford to pay back finance as a monthly expense. 

Calculate the return % that the lender is asking for, and consider if this will be a burden to your monthly costs.

Bottom Line


Overall, using finance to fund surgery is neither good nor bad. The key is assessing whether you can make the monthly payments in full across the allocated termed contact. 

Using finance to fund surgery should not be a decision based on initiation. Spending time calculating how much you can afford monthly, in addition to measuring whether finance is a necessity is a key indicator as to whether surgery is worth the investment. 

On one hand, you can’t put a price on being in good health, on the other hand, the cost of healthcare continues to rise. Cosmetic surgeries such as facelifts in London may come at a cost, but if achievable within your current earnings to spread the cost, it may be worth the consideration.


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