Cosmetic Plastic Surgery Financing

Searching for cosmetic plastic surgery financing could mean the prospect of finally looking like you feel, being happy when you look into the mirror, and having a more positive body image. Cosmetic surgery has its history as far back as 2000 BC in India. The western world began plastic surgery as a distinct medical practice that specializes in changing (for the purpose of perceived improvement by the patient) the structure, shape or size of a body part. Originally, plastic surgery was developed out of the need to provide correction or restoration in form or function. The word "plastic" is derived from the Greek word plastikos. Its meaning is to mold or to shape. This line of practice has its roots in helping people who needed reconstructive surgery because of burns, accidents, operations, or birth defects. Because of the lack of anesthesia prior to the 1800's, few people boldly withstood the pain of surgery for cosmetic purposes. Today, the biggest deterrent to this type of surgery is the cost. Nonetheless, banks, finance companies, and even credit unions stand at the ready with cosmetic plastic surgery financing for those who qualify. "And if ye lend to them of whom ye hope to receive, what thank have ye? for sinners also lend to sinners, to receive as much again. But love ye your enemies, and do good, and lend, hoping for nothing again; and your reward shall be great, and ye shall be the children of the Highest: for he is kind unto the unthankful and to the evil. Be ye therefore merciful, as your Father also is merciful." (Luke 6:34-36)

Depending upon the cost of the procedure, a person may be able to utilize a credit card. Frankly, if a person has a great availability of credit already, then perhaps there is no need to consider cosmetic plastic surgery financing in the first place. As a matter of fact, there is a medical credit card whose sole purpose is to fund expensive medical procedures. If a person has one of these credit cards, they could conceivably have a consultation today and schedule their surgery for tomorrow. When a person does not have such an instrument at the ready, application for a personal line of credit is a good solution. Each institution, that offers unsecured personal loans, could possibly fund an operation of this type. But, there are actually companies that specialize in cosmetic plastic surgery financing; only. Not unlike other financial institutions, a person needs to apply and be approved. This type of loan has no collateral. Collateral would be something they could hold the title to or sell off; just in case a person were to default on the loan. Well, of course, they couldn't do that with your new nose, belly, or waistline. In view of the fact that there is no "collateral," these type of loans are called unsecured.

Lending institutions offering cosmetic plastic surgery financing will carefully evaluate a person's financial situation. The first step would be to pull a credit report and evaluate bill paying history. A person's credit report tends to be a good indicator of how they handle financial matters. Although each lender has their own particular eligibility requirements, there are some standard guidelines that are common to most: 1) the number and type of delinquencies, 2) the type and age of collection actions, 3) total outstanding debt, 4) age of credit history, and 5) credit score. Measurement of the number of delinquencies a person has had are a good indicator of payment promptness. Some companies disregard medical collections. Often the reporting guidelines, for the medical profession, are slightly different than those for other credit accounts. And more often than insurance companies like to admit, they drop the ball and the patient is left holding the bag; until the situation is can be cleared up; though not without blemish to the person's credit. In the case of cosmetic plastic surgery financing, there is more weight given to delinquent medical accounts; for obvious reasons.

Collection actions happen when the person fails to pay a debt. In many cases, people allow accounts to go to collections in protest. Perhaps, there is a mistake or miscalculation that is unfavorable to the account holder. Or maybe, the account holder suffers a job loss and the company is unwilling to allow a renegotiation of terms. No matter whose fault it may be, the account holder's credit will suffer. Typically, a person's credit score has a large bearing on whether the person is successful in obtaining credit; even if all the other criteria are satisfactory. There are actually three different credit scoring agencies. Each agency uses a different algorithm to calculate a person's credit score. Scores range between 350-890. Most people have credit scores that fall into the mid-ranges. The score a person is given by each agency may differ; from a few points to 100 points or more. The lender who will be offering the cosmetic plastic surgery financing is likely to use scores from only one of the credit scoring agencies.

A person who has a a good credit score should not have a problem with obtaining financing. There are few other requirements that a typical financing source will look at; as well. A minimum of 2 years credit history is usually required. A person's debt ratio should not be above 50%. A debt ratio is the the amount of money a person earns versus the amount of money they are obligated to pay out in bills each month. Then, of course, the lender looks at total outstanding debt. The interesting thing about total outstanding debt is that that it measures how much credit you have, but do not use. Some lenders look at the amount of credit card debt a person already has; with an acceptable high limit of no more than $15,000. Credit underwriting is done on a case by case basis. Cosmetic plastic surgery financing is a niche that falls into the category of unsecured debt. Some lenders require a huge amount of documented evidence of everything a person writes on the application; especially when it comes to unsecured personal credit. Lenders, who loan for this purpose, are very careful; because they know that they cannot repossess a new nose.

Cosmetic Plastic Surgery Loans

Financing companies offer cosmetic plastic surgery loans so that people can afford expensive surgical procedures. In reality, however, loans of this type are nothing more than unsecured debt. An unsecured loan, often referred to as a signature loan, is not based on any collateral. Instead, the financing is approved based on the applicant's credit history and past record of repaying debt. Such factors as annual income and length of time at the current job and residential address are also considered. A person who has worked for the same employer and/or lived at the same address for several years is demonstrating stability and this can be an important factor in the loan approval process. In contrast to unsecured debt, a secured loan is based on collateral. In other words, the loan is attached to a specific and tangible object, such as a house or a car. Financial institutions that provide cosmetic plastic surgery loans can't foreclose or repossess anything that has to do with the loan so the debt is unsecured. However, that doesn't mean that there aren't penalties for nonpayment.

Individuals who miss payments on unsecured debts put their credit score at risk. This can be a problem if credit is needed in the future to purchase a home or other big-ticket item. A low credit score may also affect a person's auto insurance rates. Before applying for financing (whatever the reason), potential applicants may want to review the information on their credit histories for any inaccuracies that may have been reported since the interest rate on unsecured financing, including cosmetic plastic surgery loans, often depends on one's credit score. Federal law requires each of the big three credit reporting agencies, namely, Equifax, Experian, and TransUnion, to give one free credit report a year to those who request them. Many people find it helpful to stagger the free reports by requesting one every four months. For example, an individual might choose to get his free report from Equifax in January, the Experian report in May, and the TransUnion report in September. Though the report is free, the agencies are allowed to charge a fee for the actual credit score. Consumers can choose to pay this fee each time they get a report or perhaps just once a year. Each agency has a different formula for coming up with that important score, but consumers can still get an idea of their creditworthiness by obtaining the number.

As already stated, the interest rate for cosmetic plastic surgery loans is often determined by the applicant's credit history and score. Someone with a low score will usually be charged a higher interest rate than a person with a high score. By reviewing one's report before applying for financing, the applicant can correct any inaccuracies that may be adversely affecting the score or improve it by taking positive steps that will increase the score. For example, the ratio of indebtedness to income may be too high or too many late payments may have lowered the score. The individual can take steps to correct these types of factors by paying down debt to improve the ratio and making payments on time for several months. Of course, the time needed to raise the score may mean postponing the planned surgical procedure for awhile. But postponing the procedure until one's credit score applies for more favorable rates will save money in interest costs. King Solomon wrote: "There is that speaketh like the piercings of a sword: but the tongue of the wise is health" (Proverbs 12:18). When someone wants something very much, waiting can be very hard. But postponing optional surgical procedures until one can get the most favorable financing terms on cosmetic plastic surgery loans is wise financial advice. Of course, even wiser financial advice is to save on interest costs altogether by either saving up for the procedure or forgoing it altogether.

When financing is needed, potential applicants should carefully review the loan documents before signing the paperwork. In addition to securing the most favorable interest rate possible (given one's credit rating), the individual will want to choose the best payment plan for her circumstances. One loan may have a fixed payment plan that requires a regular monthly payment for a number of months. Another plan may have a deferred option that charges zero interest for a certain period of times, usually one year. Additionally, applicants should only choose among cosmetic plastic surgery loans that do not include prepayment penalties in the terms and conditions. This type of provision effectively prevents the borrower from paying off the loan early. When choosing a lender, applicants should also pay attention to the level of customer service that is provided and avoid those lenders that don't provide accessibility. Consumers are also warned to stay away from financing companies that select the surgeon who will perform the procedure. Money should only be borrowed from a company that will provide the funds to the medical professionals chosen by the borrower.

The application process for many cosmetic plastic surgery loans is actually quite simple. Companies often provide consumers with the option of applying for funds online, through an automated phone system, or via fax. Usually a decision is made fairly quickly. Applicants often find it helpful to know how much money is available to them before meeting with their surgeons for the initial consultation. Once the loan is approved, the company can wire the funds directly to the medical professionals before the surgery date. This ensures the money is used for the purpose for which it was intended and also eliminates one more thing for the prospective patient to worry about. With financing in place, the consultation over, the surgery date scheduled, and payments made as needed, the patient only needs to worry about her recovery. In summary, cosmetic plastic surgery loans are basically unsecured financing that is marketed for a particular purpose. Unless it's absolutely necessary, it's a loan most people should do without.

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