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    Dental Loans Compared: Upstart vs SoFi

    Dental procedures in the United States aren’t getting any cheaper. In fact, the average procedure can cost anywhere between $100 for basic cleaning to $10,000 or more for advanced dental surgery or orthodontic work.

    Since many dental procedures are cosmetic, you may find that your health insurance provider won’t cover them. Financing your much-needed dental surgery can be challenging. Fortunately, products like Upstart medical loans and SoFi loans for dental treatment are available.

    Let’s take a look at these loans in more detail to help you make the best possible decision. 

    What’s A Dental Loan?

    Like most medical loans, dental loans are a type of unsecured lending product. You don’t usually need to provide any collateral like a car or valuables when applying for a loan of this type.

    • Dental loans are available in amounts ranging from several hundred dollars to ten thousand dollars or more 
    • The interest rate and fees associated with your loan will vary according to your credit score. If your FICO numbers or above 690, you’re more likely to get a lower APR loan

    A full set of braces can cost upwards of $5000 today. If you choose to finance the cost of the dental loan at 15% APR over two years, you’ll pay a monthly installment of $242. By paying all your installments on time, you’ll emerge debt-free after the period of your loan is over.

    Upstart vs SoFi

    You may have heard of these two loan providers, but what should you expect when you apply for a loan with either of them? 

    Here are some of the main features of both lenders. 

    Lender

    APR Range

    FICO Score Required

    Loan Amounts

    Upstart

    7.0% - 35.99%

    600

    $1,000 - $50,000

    SoFi

    5.99% - 18.72%

    680

    $5,000 - $100,000

    What To Compare

    Choosing the best dental loans can be overwhelming because there are so many providers and different options on the market. 

    When you compare lending options, it’s always good to have a set of criteria you can use to make a solid decision. Here are some of the facts you may want to consider.

    • APR- The annual percentage rate on your loan will indicate how much you’re likely to pay in interest rates and fees as a percentage of your loan amount. This figure will increase for customers with lower credit scores making it more expensive to borrow money
    • Fees- The costs involved in your loan include processing fees, document preparation fees, and extra fees for late-payments and early settlement of your loan. You’ll want to visit your lender’s website or call them to verify these amounts before you settle on a loan
    • Application Requirements and Funding Time- Every lender has different criteria that they use when considering applications. The outcome will depend on your credit score, income, and job situation, as well as the amount you’d like to borrow. A loan company that offers same-day approval may be a better choice if you’re keen to proceed with your dental procedures immediately.

    How Will A Medical Loan Affect Your Credit Score?

    Every type of credit amount has an impact on your credit score, and dental loans are no exception.

    When you apply for your loan, your lender may do a hard credit check after pre-approval. That’ll cause your credit score to drop by a few points, but it should increase again if you service the loan reliably.

    If you don’t have a personal loan on your credit profile, applying for dental financing could help improve your credit mix and boost your FICO score.

    Alternative Financing 

    If your loan application is rejected, you don’t need to forego having a dental procedure. There are several alternatives you can consider.

    Ask your dentist for a payment plan. Many medical providers will arrange for you to pay for your treatment installments. These are usually interest-free, but if you default on them, your account could be handed over for collection.

    Be sure to seek affordable treatment. There are many medical providers to choose from and you can save significantly on your treatment by shopping around. You may also want to contact your local dentist school to see if they offer the procedure you need at a discounted cost.  

    Bottom Line

    Dental loans are an excellent choice for anyone who needs to pay for procedures that aren’t covered by health insurance. Lenders like Upstart and SoFi offer competitive APRs and a wide range of loan amounts.

    Should you have trouble getting approved for a loan, you can also opt for a provider payment plan, shop around for affordable alternatives, or approach your local dentistry school.