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Lending Club/Care Credit... do I have a chance?

New Visitor

Lending Club/Care Credit... do I have a chance?

Apologies if this is in the wrong category!

 

I'm in need of a loan for medical expenses that may add up to upwards of $10k(but hopefully less). After plenty of research and playing around with the rate calculator, I can easily make my monthly payments on time. However, there may be a couple of problems that some more experienced users can shed some light on...

 

I'm on a fixed income. It's dependable and isn't going anywhere, but it is low, approximately $7k a year... just under $600 a month. Is there any chance/way of getting these companies to see past my low income if I can afford my monthly payments? Which I can. 

 

My credit history is also short, with one account just over a year old and the rest are between 8-10 months. I utilize all accounts and have never been late on a payment. At present my score is 670. Is the fact that I've always been on time and have a decent score important, or are they going to flat out deny me because of the age of my credit and low income?

 

If you think these guys are going to shut me down immediately, are there any reputable credit/loaners that you think will want my money?

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Valued Contributor

Re: Lending Club/Care Credit... do I have a chance?


thecreditnewbie wrote:

Apologies if this is in the wrong category!

 

I'm in need of a loan for medical expenses that may add up to upwards of $10k(but hopefully less). After plenty of research and playing around with the rate calculator, I can easily make my monthly payments on time. However, there may be a couple of problems that some more experienced users can shed some light on...

 

I'm on a fixed income. It's dependable and isn't going anywhere, but it is low, approximately $7k a year... just under $600 a month. Is there any chance/way of getting these companies to see past my low income if I can afford my monthly payments? Which I can. 

 

My credit history is also short, with one account just over a year old and the rest are between 8-10 months. I utilize all accounts and have never been late on a payment. At present my score is 670. Is the fact that I've always been on time and have a decent score important, or are they going to flat out deny me because of the age of my credit and low income?

 

If you think these guys are going to shut me down immediately, are there any reputable credit/loaners that you think will want my money?


Sorry about the need for a large amount of medical expenses. I myself spent $4,000 last year on unplanned expenses, and had a much lower income at the time, so I know how it feels. 

 

As far as your loan approval chances, I hate to say it, but they're probably going to say no. You're correct in assuming that your on-time payments will help, as they make up 1/3rd of your FICO score, but that low income is going to make them nervous about your ability to repay. 670 is on the lower end of "Fair" credit, so your score is average at this time. 

 

Are you a member of any local credit unions? Sometimes a human can make things happen that a computer can't, and they might be able to work with you a bit. 

 

Do your medical professionals offer in-house financing? If so, that might help a bit. 

 

Do you have a higher household income than just your income? If CareCredit is accepted by your medical professionals, you might be able to obtain a decent starting limit with them, if you can use a higher household income on your app. 

 

Worst case scenario, have the work done, then when the bills come, setup payment arrangements with all parties. I find that most medical companies will take zero (or very low) interest payment plans because they would rather collect something then nothing at all. 



Starting scores: 552 EQ, 570 TU, 558 EX Current scores (9/29/17): 746 EQ 721 TU 719 EX
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New Visitor

Re: Lending Club/Care Credit... do I have a chance?

Thank you for your response!

 

I unfortunately don't belong to a local credit union. My bank offers personal loans but I imagine my chances of getting a fair deal with one of their lenders is about as good or less than the original companies I had considered. 

 

My procedures are technically considered elective so I'm not sure that they would even do the work without having a plan already in place, though I can't say that for sure because I'm inexperienced with this type of thing. I have yet to select a surgeon but I have narrowed it down and am leaning toward a private facility, which I know accepts CareCredit but I'm not sure what else. My cost estimate was just a guess based on research but I still need to go in for a consultation so I know for sure what the price tag will look like. I suppose I could discuss with them then about whether or not they'd be willing to work with me in the event that CareCredit rejects me, but that's the only financing option they openly advertise. 

 

Legally I am my own household, which is frustrating because I do live with immediate family whose income is much higher than mine, hence my ability to pay off my medical bills on a financing plan if it were granted to me. They pay the mortgage and such and I help unofficially. I'm guessing I couldn't include their income on the application? I'm completely unfamiliar with the legal loopholes when it comes to things like that. 

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