Thinking of having a bit of cosmetic or plastic surgery done? If so, you’re in luck, because most Canadian cities will have plenty of clinics that can offer you a variety of procedures. The only problem is that these kinds of surgeries can be highly expensive and totally out of your budget in some situations.
Don’t worry, because there are a few types of financing available that can make these pricey surgeries more affordable. Keep reading to learn more about them.
How to Cover the Cost of Cosmetic and Plastic Surgery
If you’re looking to finance a cosmetic or plastic surgery procedure without dipping into your savings or using your credit cards upfront, you’ll generally have three alternative options.
Unsecured Personal Loan
Your first option would be to apply for a traditional personal loan through a prime or subprime lender in your area (or online). If you qualify, a lump sum of money will be deposited directly into your bank account. You would then repay your borrowings with interest over several months to several years.
Since an unsecured loan involves no collateral for the lender, it’s possible that loans will be smaller and have higher interest rates than other financing solutions. For the best results, apply when you have a good income and a solid credit score of 660 – 900.
If you have access to an asset, such as a lien-free vehicle title or at least 20% home equity, you can also apply for a secured personal loan. In this case, your lender will claim temporary ownership over your collateral in exchange for a larger loan amount, a lower rate, and a longer repayment plan.
Before you apply for secured financing, it’s important to understand the risk that you would be accepting by offering collateral. Since the asset acts as security for the lender, they will have the right to seize it if you default on too many payments.
There are more than 20 ways you can secure a loan. Learn more here.
In-House Payment Options
In Canada, you’ll also find many cosmetic and plastic surgery clinics that have their own in-house financing programs. So, instead of applying for a loan through a third-party lender, you would simply make regular payments toward the clinic itself and save yourself the trouble of applying for a loan.
However, in-house financing generally means that you’ll have to use cash or credit to pay for your procedure, which can be tough on your budget. Instead of charging interest, there may be a number of medical and administrative fees to cover. Before choosing this or any option, make sure you understand all the details and can afford to keep up with the payments.
What About Bad Credit Financing Options?
As mentioned, having a good credit score is key when you apply for financing, as lenders will consider you more likely to make payments on time. Unfortunately, a bad credit score of 300 – 600 may limit your options because it’s often a sign that you struggle with debt management and therefore have a greater probability of default.
As a result, you may have to apply for a smaller loan with a higher rate through a subprime lender. Don’t worry, although bad credit financing is somewhat less favorable, any payments you complete should elevate your credit score gradually.
That said, there are a few ways to make the most of your bad credit when you apply for cosmetic or plastic surgery financing, such as:
- Choose a lender who reports to Canada’s credit bureaus
- Make sure they are a legitimate business with a good reputation
- Organize your personal and financial information for inspection
- Fill out your application honestly
- Consider getting a cosigner
What is a Cosigner?
If you have bad credit, getting a stronger borrower to cosign your application is a way of receiving better conditions when you apply for financing (click here to learn more about cosigners). This is because the cosigner agrees to ‘guarantee’ your payments will be made on time, even if you, the primary borrower can’t afford them.
To qualify, your cosigner should have a decent income and good credit. Nonetheless, keep in mind that any payments would come out of their pocket and affect their credit if you default, so be sure that your cosigner is well prepared to handle this responsibility.
If you don’t have or don’t want to apply with a cosigner, you can also wait to improve your credit by:
- Consolidating any outstanding debts
- Checking your credit report for errors, fraud, and identity theft
- Using a normal or secured credit card to make proper payments
- Going to credit counselling sessions
- Waiting for your finances to recover if you’ve recently gone through a consumer proposal, bankruptcy or other debt settlement process
How to Compare Your Financing Options
Once you’ve decided that financing a plastic surgery procedure is the right option for you, you need to choose the type of financing that will best suit your requirements and budget. To help make the right choice, consider asking yourself the following questions:
What Interest Rate Will I Be Approved For?
Interest rates will vary greatly depending on what kind of lender you apply with. Typically, rates offered by prime lenders like banks are a tad lower than those of a subprime lender, especially if they offer bad credit loans, which carry more risk for them.
However, most lenders will base your rate on how healthy your income, credit score, and current debt levels are. The easier it is for you to make payments as agreed, the lower your interest rate will be.
Will My Loan Cover the Full Cost of My Surgery?
Another factor that will vary greatly is the loan amount that you’re approved for. After all, some cosmetic and plastic surgery procedures can cost thousands of dollars. Certain lenders can offer more financing than others and many won’t offer you as much if it seems like you won’t be able to afford your payments.
If you are trying to finance an expensive operation, it may be best to apply with a prime lender when you have solid finances, as well as some collateral or a cosigner. You might also be able to ask for a longer repayment plan in exchange for a larger loan.
What Payment Options Are Available and Do They Fit My Budget?
Remember, the better your financial health is, the more favorable credit products you’ll have access to. That said, the payment option you choose should be mainly based on what you can afford in terms of the installments, interest, and fees that may be involved.
For instance, cash or credit cards might be a cheaper alternative if you’re getting basic botox injections, most of which are under $1,000. However, some surgical procedures from high profile clinics can cost upwards of $10,000 if they’re extensive enough.
In that case, it may be better to apply for one of the following products:
- Secured or unsecured installment loan
- Guarantor loan (cosigned)
- Personal line of credit
- Home equity loan or line or credit (if you have at least 20% equity)
- Vehicle title loan (if you own your vehicle completely)
Larger financing products, while effective in many ways, often require you to pay more interest over time, which can be particularly unaffordable if you lose your job and don’t have enough savings during your repayment plan. Always consult a financial expert or credit counsellor prior to applying.
Will I Need to Drastically Change My Spending Habits?
Once again, your budget might not be equipped to handle your plastic surgery payments, especially if you have other expenses to consider. So, if you’re determined to have the procedure done, it’s best to draw up a new budget, start saving and cut down on unnecessary expenses, such as:
- Subscriptions & memberships
- Takeout food & restaurants
- Cigarettes & alcohol
- Clothing, jewelry & personal items
- Driving your car everywhere
- Pricey cell phone & internet/cable packages
Everything you need to know about creating a budget that works, click here.
The Most Common Cosmetic and Plastic Surgery Procedures
Depending on what type of clinic you go with, you will be able to select from a wide range of plastic and cosmetic improvements. Nevertheless, before you make your choice, it’s essential to consider the long term costs that go beyond the initial price.
In fact, there may be a surgical fee, anesthesia fee, and an operating room fee attached to your final bill. This doesn’t include the fees and interest rate associated with your potential loan payments.
However, once you’ve found an appropriate source of financing, here are some of the more common surgical procedures you can choose from:
- Rhinoplasty = $5,000 – $11,000
- Blepharoplasty = $3,000 – $8,000
- Liposuction = $4,000 – $8,000
- Tummy Tuck = $6,000 – $11,000
- Injections (Botox/Dysport) = $400 – $12,000
- Dermal Fillers (Restylane/Juvéderm) = $800 – $2,000
Finance Your Plastic or Cosmetic Procedure Today
Getting plastic surgery is not always an easy or cheap decision but it doesn’t have to be an inconvenient one if you work with Loans Canada. We can get you connected with the perfect sources of financing in your area. Simply call us today or check out our website for more information about our solutions.