COVID-19 has significantly impacted the lives of healthcare workers in America and around the world. Due to the pandemic, doctors, nurses, and similar professionals have had to deal with a higher incidence of
Oftentimes, these issues are usually correlated. For example, health issues can negatively affect your finances, while both these factors can negatively affect your peace of mind and psychological health.
Various forms of assistance were provided by both federal and state authorities as a result of the pandemic. Some federal and state assistance were directed at the general population, while others were directed towards healthcare workers specifically. And while the assistance certainly helped, it only partially compensated for the negative impact of COVID-19 on many workers’ personal finances.
As if the pandemic wasn’t enough, economic growth started slowing down due to additional factors, like the war in Ukraine, which led to pushing energy prices up.
We will discuss how personal loans for medical professionals can help them overcome financial issues and provide much-needed relief. We’ll also help you understand how to qualify for a healthcare worker loan and how to choose the right lender.
Personal loans can be used for most types of purchases or expenses. Here are some scenarios.
Based on stats published by the Bureau of Labour Statistics (BLS), the median annual wage for healthcare professionals is $75,040. This is above the national average of $45,760. Of course, this number tends to change based on the specific profession. Here is the average annual salary for some positions, based on the same BLS report:
In most cases, many professionals have the necessary income to qualify for mortgage loans for healthcare workers. Those with higher income levels may have access to lower interest rates and a higher maximum loan amount.
Your income is important when determining your eligibility for a loan, but lenders are also interested in your current debt situation. Specifically, they want to know which percentage of your monthly income is used to repay debt.
Let’s assume you are a registered nurse who earns $66,000 a year, that is, $5,500 a month. Also, let’s imagine that the sum of your monthly mortgage and credit card repayments amounts to $900.
Here’s how you can calculate your debt-to-income ratio:
In the above example, 16.36% of your monthly income is used to meet debt obligations. This is typically considered a very good debt-to-income score by lenders.
In most cases, a DTI of 36% or less is necessary to qualify for a personal loan for healthcare employees. The lower your DTI, the higher the chances of your personal loan application being approved.
Finally, lenders will look at your current credit (e.g., your FICO score) when determining your eligibility for a personal loan.
Your FICO score can impact:
According to Forbes, your FICO score shouldn’t be lower than 600 when applying for a personal loan.
Keep in mind that obtaining a personal loan for care workers will trigger a hard inquiry. This may have a negative short-term impact on your FICO score. However, making regular loan repayments can improve your credit score in the long term. Even more so if you take out a personal loan to consolidate previously accumulated debt.
While some lenders offer personal loans to healthcare professionals with bad credit or with a FICO score lower than 600, it usually means higher interest and lower borrowable amounts.
Here are other options you can look at in this scenario.
Here are the main elements to consider when looking for the right provider of personal loans for health care workers.
Your FICO score and DTI ratio aren’t the only things affecting the interest rate you will pay on your loan. All other things being equal, rates vary considerably from lender to lender. Therefore, don’t be too hasty when choosing your loan provider. Search the web and compare interest rates from various banks and online lenders, be sure to look at their fees or any other hidden costs.
Interest rates are not the only costs you will incur when taking out a personal loan. Various fees may apply, including:
These also vary considerably from lender to lender. For example, some lenders charge no application fee whatsoever, while others charge up to $50. Origination fees can range from zero to 8%, depending on the loan provider.
Analyze all the different fees charged by each provider. Some may be less noticeable at first and require you to read the terms and conditions carefully. Get a full overview of the total borrowing cost (interest + fee) for each personal loan provider before choosing the right one.
Different banks and institutions also have different caps on the total sum that you can borrow with a personal loan for healthcare workers. For most lenders, this sum is between $40,000 and $50,000. Some personal loan providers offer an even higher maximum amount.
For example, Level Lending allows you to borrow up to $55,000. Being able to borrow large sums is very helpful in certain scenarios. This could be the case of a private doctor who wants to renovate his office or purchase new equipment. Or of any healthcare worker planning multiple personal expenses over the course of the next few years.
Lastly, look for personal loans without complicated or energy-consuming application processes. On Level Lending’s website, you can quickly enter your data and desired loan amount and receive a quick loan offer in no time. The staff will help you determine the best options for your needs, as well as assist you through the steps of the application procedure.