Health loans, or loans for individuals with pre-existing conditions, are loans that are specifically designed to help individuals who are suffering from health problems. These loans do not need to be paid back. Instead, the money is put into a special account and used to pay off medical bills.
However, you may find that your credit rating will not allow you to qualify for a short term loan, especially if you have recently had a major medical bill or two.
In general, a health loan can take longer to get approved than other types of loans, because of the specific requirements. For example, most health loans require a plan to repay the loan, as well as having a co-signer.
A co-signer is simply someone who will sign over responsibility for the loan. A co-signer is normally a family member, but can also be another individual, who agree to shoulder the cost of the loan.
Other loans will also require that the co-signer have a regular income so that the loan can be paid off. If you get a loan that requires a co-signer, it will usually be a secured loan.
Secured loans require the co-signer to pledge their property, such as a home or car in order to obtain the loan. The interest rate for a secured loan is higher than an unsecured loan because the risk associated with the lender is higher. The reason why secured loans usually require a co-signer is to ensure that the lender will cover the debt should the co-signer default on the loan.
Since the lender doesn’t want to go through the hassle of selling the property, they take a lower interest rate to keep their investment. The interest rate on a secured loan is usually lower than what you would pay on an unsecured loan.
You also get a low-interest rate, since you are acting as a co-signer. Because of this, you will have less difficulty qualifying for an unsecured loan, since there is no need to co-sign for that loan.
In order to qualify for an unsecured loan, you must be able to show that you have some savings to repay the loan. You must also have a reliable source of income, as well as a source of collateral that is guaranteed by the lender.
People with adverse credit history usually need to show proof of employment, such as a paycheck stub, before they can be approved for an unsecured loan. It is often difficult to establish employment because employers frequently do not ask about employment when processing an application.
Once you have established a collateral source of income, you can then start your application for an unsecured loan. The only downside to this type of loan is that you cannot use the funds to pay for other items.