Dental loans

What type of loans are available for dental work?

Many Australians enjoy the physical and mental benefits that come with having a good set of teeth. To keep your smile bright you’ll need to maintain healthy teeth and gums and, on occasion, visit the dentist for a checkup. 

There are also circumstances where you may require emergency surgery or corrective instruments to improve your mouth health. A personal loan may help to pay for the costs of dental work. 

There are two types of personal loans available:

• Secured personal loan: A loan that utilises collateral, such as a car or home, to protect the bank against default.
• Unsecured personal loan: A loan without collateral that may come with a higher interest rate.

The type of personal loans offered by lenders for dental treatment tend to be unsecured.

Why do people use personal loans for dental procedures in Australia?

Dental issues often happen unexpectedly, and in some scenarios, are an outright emergency. This can leave people without dental insurance in a tight spot if they don’t have the cash needed to pay for such procedures. 

The Australian Government does not assist with the costs of most dental services in the way it does with other health services. Most dental costs are paid for by patients. However, Medicare does cover some essential dental services for eligible children and adults.

Each state and territory offers different services and you may have to wait up to a year or more to see a dentist.

While you can opt for dental extras cover on your private health insurance policy, most health funds will only pay a portion of the cost and you will need to pay the rest. Unfortunately, some procedures can be quite expensive. 

You might decide to take out a personal loan for the full cost of your procedure, or as a means to cover the gap payment between what your health insurance provides and what extra you owe.

What dental services are available?

There are a range of dental procedures that can be performed, from general dental appointments to cosmetic surgery and orthodontic treatments.

Examine your private health insurance product disclosure statement (PDS) to see what specific dental services are covered. Funds often use different terms to describe what they will pay for, so you’ll need to check your policy carefully. Here are some examples:

• Routine: May include x-rays, examinations, cleaning, fluoride treatment, tooth extractions and fillings.
• Major: May include crowns, veneers, bridgework, implants and dentures.

Some health funds have preferred or recommended providers. Make sure that the dentist you see is approved.

Dental loans for unemployed people are available, as are dental loans for people with bad credit. However, it’s typically advisable that these loans are used only for emergencies and not routine procedures, as those who are not working or have bad credit might have difficulty paying off the loan.

What are the features of a personal loan for dental services?

It’s important to note that when you apply for any loan, the lender will want as much information as possible pertaining to how you intend to spend the money you’re borrowing. Be prepared to provide all required information regarding your purchase, as well as pertinent personal financial details.

Personal loan lenders in Australia generally cap the maximum borrowing limit at $50,000 - $60,000. However, the purpose of the loan, and whether it's secured or unsecured, may determine whether you can request more funds.

Loan terms typically range from one to seven years, depending on the lender’s borrowing conditions. You can apply for a personal loan with either a fixed or variable rate.

While repayment schedules can vary between lenders, you can often choose to either make weekly, fortnightly or monthly repayments. These are typically set up to align with when you’re paid.

What are the pros and cons of personal loans for dental work?

Borrowers might consider the following potential advantages and disadvantages when seeking a dental personal loan:

Pros:

• Access to cash when stuck with a dental emergency
• Interest rates can be lower than using a credit card
• Structured repayment plan allows borrowers to map out their finances

Cons:

• Some personal loans could take time to secure, which might be an issue for those in a dental emergency
• Borrowers who are unemployed and/or have bad credit might experience high interest rates
• Personal loans for dental could put borrowers under further financial stress

How do I take out a personal loan for dental work?

If you’re interested in discovering how much you may be able to borrow, consider using our RateCity Personal Loan Borrowing Power Calculator. Simply enter some details about the loan, such as the amount you want to repay, the repayment frequency and your credit score, and the calculator may help you gauge your estimated borrowing power.

Once you’re aware of how much you want to borrow and spend, compare dental loan options using RateCity’s comparison tables. Once you’ve discovered a loan that best suits your needs, click the "Go to site" button and you’ll be redirected to your chosen lender’s website.

From there you can fill out an application form as long as you meet the eligibility criteria - generally, you’ll need to be an Australian citizen or permanent resident over the age of 18.

Be prepared to have the following documents available for verification when taking out any personal loan:

• 100 points of identification, such as your driver’s licence or passport
• Current employment details - employer’s name, contact details, recent payslips
• Personal financial details - Full list of assets, income, debts and liabilities
• Details of the item/s you intend to purchase if you don't have pre-approval

Be realistic with your budget and do your research when considering personal loans to finance purchases. Consulting a financial advisor may be helpful if you have any questions or queries.