CLEARBORROW · PUBLISHED NOVEMBER 12, 2026
Medical bill loans: what to try before borrowing
Before borrowing for a medical bill, ask the hospital for its Financial Assistance Policy — nonprofit hospitals must have one under the Affordable Care Act, and many others do too — and for an itemized bill and a payment plan. Be careful with medical credit cards: the CFPB found people paid $1 billion in deferred interest on healthcare charges in 2018–2020, and about one in five purchases on deferred-interest promotions ended up charged interest.
On this page
Step 1: ask for financial assistance
Financial assistance programs, sometimes called charity care, provide free or discounted care to people who need help paying. The ACA requires hospitals to have a written Financial Assistance Policy; ask for a copy up front (CFPB ↗). Even for-profit or private hospitals may have a policy, and some states add their own protections (CFPB ↗).
Nonprofit hospitals must make reasonable efforts to determine whether you qualify for financial assistance before taking extraordinary collection actions (IRS ↗). Tell the hospital if you are worried about paying — before treatment or during billing (CFPB ↗).
Step 2: check the bill
- Ask for an itemized bill and compare it with your insurer’s explanation of benefits.
- Question duplicate charges or services you did not receive.
- Ask the billing office for a payment plan and whether it charges interest.
Step 3: be careful with medical credit cards
Many medical credit cards offer deferred interest for six to eighteen months; if a balance remains at the end, interest can be charged back to the start. The CFPB found people paid $1 billion in deferred interest on healthcare charges from 2018 to 2020, and incurred interest on 20% of healthcare purchases made with deferred-interest cards or loans between 2015 and 2020 (CFPB report ↗).
Step 4: if you still need to borrow
| Option | Notes |
|---|---|
| Hospital payment plan | Often the first thing to ask for |
| Credit union PAL | Up to $2,000 at no more than 28% APR |
| Personal installment loan | Fixed payments; compare APR and fees |
| Medical credit card | Only if you are sure to repay before the promotion ends |
Our example: $2,000 at 28% APR over 12 months costs about $316 in interest (our arithmetic).
If a bill is in collections
You have rights when dealing with debt collectors, and you can submit a complaint to the CFPB (CFPB ↗). See what collectors can and cannot do.
Questions
Can I get charity care after I’ve been billed?
Often yes. Ask for the financial assistance application; nonprofit hospitals must try to determine eligibility before extraordinary collection actions.
Is a medical credit card a loan?
It is credit. Deferred-interest promotions can become expensive if the balance is not paid in full in time.
Will asking for financial assistance cause problems for me?
The CFPB says getting help with medical bills does not jeopardize your status. Ask the hospital or a legal aid office about your own situation.
Sources and limits
- CFPB: is there financial help for my medical bills? ↗
- CFPB: help with medical bills you are entitled to ↗
- IRS: billing and collections rules for nonprofit hospitals (501(r)(6)) ↗
- CFPB report (2023): medical credit cards and financing plans ↗
- NCUA: PALs I and PALs II requirements ↗
Sources checked November 12, 2026. This is general information, not legal, tax or benefits advice; rules differ by state. Worked examples are our own arithmetic, not offers. How we use sources.