Many have undergone in plastic surgery due to accidents, ailments or in some common cases to look more beautiful. Plastic surgery is a surgery concerned with the restoration, repair, or improvement of lost, injured, defective or misshapen body parts. It is also the implantation or grafting of the plastic parts into or onto human beings. Ever since then it was a big hit all over the world, although only the upper class and the upper middle class can afford these surgeries. Lending institutions had the idea of loan for plastic surgery patients.
Plastic surgery financing is an unsecured personal loan. There is no collateral for the loan so they have a high interest rate. A creditor can take back a car or home but they can’t take back a tummy tuck, so having a high interest rate helps them hedge the risk of collateral. Interest rates ranging from 15% to 20%, some financial institutions offer rates as low as 8% to 10%, for some who have good credit score. Banks or lending institutions evaluates the applicant and their credit report to predict how they can repay a loan. Credit report includes your bill-paying history, how many types of accounts you have, outstanding debts, late payments, and age of your accounts. Bankruptcy, late payments or collection can affect your credit score more likely 5 to 8 years.
If you have a good credit report there’s always a good chance of the applicant’s application to be approved easily but if you don’t have a good credit report then it would be best if saving up and paying the amount when you have sufficient funds available. Most loans have their own specific repayment terms, the set up for periods are of then 12, 24, 36, 48 or 60 months with the minimum amount of $1000 for bad credit and $25000 for good credit. This way you have a set of schedule of minimum payments due until the loan is paid. Paying through credit cards may cost you much more because they let you pay less than a month and in the long run due to the extended time that interest will keep increasing and will definitely burdened your surgery debt much longer. If you are not qualified on your own, most will approve a co-signer with a better credit to help you. If you do not qualify on your own, most will accept a co-signer with better credit to help you.
The most important thing is always to make sure that you can afford the loan and that it would not be a financial burden to you. Making sure that you are well informed on all terms and conditions of the plastic surgery loan you took out and any additional loan fees that may attached to the original amount. You need to make a well informed decision on which is the right loan for you in your particular financial situation. Also make sure to save up for emergency purposes that may happen along because having extra funds may help a lot in reducing your debt. Some patients set up a separate banking account from their personal accounts to save for such an occasion and probably handle their finances better.