Dental health is a major concern that sometimes is overlooked. According to a 2017 report compiled by the Canadian Dental Council, children missed an estimated 2.26 million school days because of some kind of dental related illness. The same report noted that children in the United States are five times more likely to seek emergency room treatment for dental issues, simply because they are not covered under dental insurance plans and their parents do not have the funds to cover treatment costs. An estimated 35% of the world’s population has at least some decay on one or more permanent teeth.
Lenders who offer dental financing help to fill a void and provide more people with help in getting the treatments they need. As you consider the merits of different patient financing companies, explore these four factors. Doing so will help you make wise decisions about the financing and which company would be your best choice.
The Amount You Need to Borrow
How much would it take to cover the cost of a necessary procedure? While any lender who is engaged in financing dental work will require some type of down payment, the amount you borrow will influence how much you must pay up front. That’s because the down payment is normally based on a percentage of the cost of the treatment. Even if you qualify for a higher amount, it makes sense to focus on financing dental care you need now and not secure a loan for more than you need.
Choosing The Right Approach to Interest
When financing dental work, you may be offered two different ways to approach the interest. These options are:
• Fixed Rate
• Floating Rate
With a fixed rate of interest, you never have to worry about the amount of interest you owe changing. It will remain constant. The only time there may be a change is if you are late with payments and the contract terms allow the lender to increase the base rate.
A floating rate would allow you enjoy a short period of a fixed interest rate, then a variable or floating rate for the rest of the loan term. While this may seem attractive if you expect interest rates to drop, it could also mean you end up paying a higher rate. If you believe the average rate will drop and remain lower, this would be a good choice.
Exploring the Issue of Security
Financing dental work also means comparing plans that require security with those that are considered unsecured. This simply means some plans will require you to pledge some sort of collateral for the duration of the loan. Unsecured loans mean no collateral is required.
Depending on your financial circumstances, financing dental care using a secured loan could make it easier to lock in a lower rate of interest. Compare both options closely and see if there is any real difference.
The Lender With the Best Reputation
When financing dental work, it’s understandable that you want to choose a lender who has the best reputation. That reputation must be built on a history of offering excellent terms, providing excellent customer service, and evaluating applications fairly and promptly. Always look for reviews of any lender you are considering and read them carefully. The information you glean will help you determine if financing dental work with a particular lender is likely to be in your best interests.
The Canadian Health Measures Survey for the years 2007 through 2009 indicated that around 12 million Canadians had at least one dental issue that remained untreated. If you are among that number, it’s time to look into financing options. Choose well and you will get to enjoy better oral health and still keep the household budget intact.