Financing Surgery

[Miclam]

Hi all.  I'm a 22 year old gynecomastia victim and I'm finally ready to get the surgery.  I've made an appointment with Dr. Jacobs in NYC for next week and I'm hoping to be approved for his financing plan.  However, I'm a little worried about that, since from what I've read here the surgery will cost around $6,500 and my FICO score is only 678 (no late payments or delinquencies, just a short credit history).  Does anyone have any idea what my chances are of being approved for something like this?  My consultation is less than a week away, but this worry has been really nagging me.

[Midwestdude]

Just curious whether you're a current homeowner.  If so, a home equity line of credit would be one option.

Do you have an employer-sponsored 401(k) plan?  If so, some plans provide for loans against your balance.  In that case you repay yourself with interest.

If by chance you have a whole life policy in force, you may have the ability to borrow against this as well.

Another source of financing you've surely thought of is maybe from family.  

Your credit score is good.  Other good news is that interest rates are still low (again, your credit score helps qualify you for more favorable rates than someone with a weaker score).  I don't know whether any of the above mentioned scenarios apply to you, but as a CPA and Realtor, I just wanted to throw out a few options that came to the top of my head.

[phantom]

I have no idea how credit scores work in the US (I am from UK) but whether you get the funds you need or not, start getting a back-up plan in place.

It will still be useful to go to your consultation even if you are not in a position to finance the surgery just yet.  Wait to see if your loan is approved or not.  Or at least find out what the maximum is that you can be offered.

If you think you are genuinely in a position to manage this debt, you could bridge any deficit you need for surgery by using a low interest credit card (or two) and use your overdraft.  Calculate how long it would realistically take to repay any loan sources and how much interest you'd have to pay.  Then you can see how much the total amount would come to.

If the total seems too unreasonable, would it be worth waiting a year or two to save up the difference?  I took on extra work over the last couple of years and put every single penny to one side to pay for my surgery.  Now I have the funds and set to go on January 20th.  Because I have the money ready, it's almost as if the surgery is free!

Hope that helps.

[Miclam]

Just curious whether you're a current homeowner.  If so, a home equity line of credit would be one option.

Nope, I still live with my parents.

Do you have an employer-sponsored 401(k) plan?  If so, some plans provide for loans against your balance.  In that case you repay yourself with interest.

I do, but I just started it last week, so my balance isn't very large.

If by chance you have a whole life policy in force, you may have the ability to borrow against this as well.

Nope.

Another source of financing you've surely thought of is maybe from family.

I have, but I hate asking for such things and will only use it as a last resort.

Your credit score is good.  Other good news is that interest rates are still low (again, your credit score helps qualify you for more favorable rates than someone with a weaker score).  I don't know whether any of the above mentioned scenarios apply to you, but as a CPA and Realtor, I just wanted to throw out a few options that came to the top of my head.

Well it's good to know that my score is good; I thought it was just average.  My uncle is going to come to the consultation with me, and he has said that he's willing to co-sign if I can't get approved, but he's a little apprehensive about it because he's planning on buying a house soon.  If he did co-sign, would that hurt his credit in that area?

Thanks for taking the time to answer my questions.  I really appreciate it.

[Midwestdude]

Miclam,

First, you have a great uncle.  That's a wonderful show of support.  Very commendable.

Probably what's most important for your uncle is his own credit standing.  The credit score is but one factor in help determining his buying power.  Obviously, if he DOES co-sign, you would need to stay current on all payments in order to not hurt his credit.  

Before looking at any homes, he should meet with a lender to see what he's qualified to purchase.  He should also ask his lender what affect it might have on his creditworthiness if he co-signs for you.  It may have little effect.  His lender will have a better idea.  

Very best of luck Miclam.  I hope things work out for you, and it sounds like you're at least doing some investigation.

[Miclam]

Well, I found out that my surgeon (Dr. Jacobs) uses Capital One Healthcare Finance and it turns out that they have an online application form, so I applied.  Not eligible.

It looks like I'll have to get someone to apply for me...

Dammit.