Many people often assume that they will automatically qualify for a cosmetic surgery loan when they apply. However, there are numerous factors that go into securing this type of loan and it is very different from applying for a home or auto loan. Let’s take a look at some of these factors associated with plastic surgery loans and explore considerations associated with them.

One of the first issues that often arises is the interest rate. While home and auto loans are enjoying some of the lowest rates in years right now, cosmetic surgery financing loans are always going to be at a higher interest rate. This is based on several different factors, such as your credit history, credit score and current economic conditions where you live. However, the biggest single issue that will affect the interest rate is the simple fact that your body can’t be repossessed after the surgery.

With car loans and home mortgages, if you default on the loan (don’t pay for it), the bank or lender can come and foreclose or repossess your property. This would be an interesting procedure if they were to come after you and attempt to repossess your breast augmentation, wouldn’t it? So, in an effort to cover more of their “risk” with this type of loan, the interest rate is generally higher, sometimes 2 to 3 points higher.

Another issue that many people aren’t aware of is the amount you might be required to put down before they will loan you the money. Much like a home loan, you could be expected to pay for a portion of the plastic surgery procedure before the financing company will loan you money. Sometimes it isn’t much, however the more you can put down in cash, the less your loan amount will be, thereby reducing your monthly payments and saving you money on interest charges over time.

The loan company might also want you to put something up for collateral as well. If you own your car or home, you might be required to sign a note, or lien, against those if you want the loan. This basically means that if you default on the cosmetic surgery loan, the company can put a lien on your property which would not give it a clear title if you try to sell it and they would be paid off of that amount when you try to sell.

Another key factor that many plastic surgery financing companies look at is your credit history and credit score. While this isn’t a deal breaker, it can get you a lower interest rate or higher loan amount. A good credit score is considered to be above 650, sometimes even 675. While lots of people often don’t have this high of a credit score, it isn’t unheard of. If you have no bankruptcies or foreclosures in your past and make your monthly payments on time, chances are that your credit score should be pretty good.

An often overlooked option for many people is saving the money for the procedure. If you don’t have to have the surgery right away for a medical reason (which is often covered by insurance) then you have to consider this option. Why? Well, if you can afford the monthly payment on a loan, what if you were to save that same amount of money each month into a savings account? How long would it take you to save the money for the surgery?

Many people have forgotten the power of cash when negotiating for items. Cosmetic surgery is just the same way. If your breast augmentation surgery will cost $10,000 and your monthly payment for that surgery will be $500 a month, you would need to just save for a little under 2 years for it. This can save you a lot of money in interest payments for the loan. Also, this doesn’t include adding to the “pot” with tax refunds, money raised from yard sales or any other budgetary savings that you can make.

Cosmetic surgeons are just like anyone else. If they know they don’t have to pay for a service, particularly for the underwriting fees associated with securing a loan or other services and you present them cash, cold hard green cash in hand for a service, you stand a much better chance of getting a discount. You should also shop around for the best price that you can find if you have cash. Not saying that you should go for someone with less quality, however again when you have cash in hand, you can sometimes name your price and shop around more strongly.

Share or Bookmark to: