Use the financing calculator above to see how affordable plastic surgery can be!
There are many companies that offer financing for plastic surgery procedures. However, a person with a good credit rating will most likely be offered a loan at a lower interest rate than someone with a lower credit score. There is not a penalty charge for prepaying the medical loan. Some financing companies make you pay an additional fee if you pay the money back sooner than expected.
In medicine, everyone knows the importance of vital signs like temperature, heart rate, respiration rate, and blood pressure. They give a quick assessment of your health at any given minute. Your credit score does the same for your financial health.
A Good Credit Score: The Prescription for Better Loans
Your credit score is a numerical assessment of whether you are a good credit risk. Lenders use your credit score to help them decide whether they will give you a loan. Basically, your credit score tells a lender whether you are likely to pay back the loan.
Your credit score can affect how much you will be allowed to borrow, the conditions of the loan, and the interest rate of the loan. Someone with a very poor credit score might not be able to borrow at all. Someone with a poor credit score might only be able to obtain a smaller loan than they wanted or one at a higher rate of interest. On the other hand, someone with a good credit score can borrow easily and at a lower interest rate.
Diagnosing Your Credit Score
The higher your credit score, the better your credit rating is. The number is determined mathematically by looking at your credit history, your payment history, your outstanding credit, and other factors.
There are three different credit reporting companies that compile credit scores on individuals: TransUnion, Experian, and Equifax. The three companies sometimes produce different credit scores for the same person because they may have different information on you. Credit scores can vary about 50 points between the three companies.
Credit Score Checkup: The Power of Prevention
Just as you should have an annual physical examination, so you should check your credit score at least once every year. Unusual activity or a sudden drop in your score for no reason can be a signal that someone has stolen your identity. Identity theft is a serious business and it can be a disaster if you don't find out that your credit has been ruined until you go to get a loan or a mortgage. Sorting out the problem can take time and a lot of emotional energy, too. If there are mistakes or bad information on your credit history, it pays to have them corrected as soon as possible. When it comes to credit card fraud, an ounce of prevention is worth a pound of cure.
At one time, the prevailing opinion was that any debt was bad debt. Shakespeare wrote, "Neither a borrower nor a lender be," in Hamlet, and most sensible people agreed with him.
Getting deeply into debt is never a good idea, but there are some forms of debt that are good. A good debt is borrowing money to buy something that will increase in value or that will be an investment in the future. A home mortgage is a good debt because a home is a lasting investment that helps build wealth. Mortgage loans also offer tax advantages. Student loans are good debts because education increases your potential to make money in the future.
Bad debt is borrowing money for something that does not last or that loses value. A car loan could be considered bad debt if the car does not outlast the loan. Debt that is clearly bad debt is using a high-interest credit card to buy restaurant meals, vacations, and clothing and then only making a partial payment on the credit card bill each month. The meal, the vacation, and sometimes the clothing are only memories by the time the debt gets paid.
If you charge lots of things because you don't like to carry money around and then pay the credit card company in full each month, then you don't have a problem because you are not building up bad debt. This kind of activity can even be considered good debt because you are showing that you are sensible with money.
That last point is important. Using a credit or charge card and paying it off each month builds up a credit history. You may think you are being financially stable by paying cash for everything and never using a card or running up any debt, but you may not be able to get a loan when you need to if you have this kind of history. Your credit history is a blank slate and does not give potential lenders enough information to go on. You may even end up with a bad credit score this way. Lenders like to see a history of obtaining credit and paying it off in a timely fashion.