Pet Financing: Should You Get a Pet Loan?

Owning a pet can be expensive. It’s important to set aside money for your pet’s needs, from everyday expenses to unexpected medical costs. This is especially true if you have or are looking for a service, therapy, or emotional support animal, as these often require specific training.

Fortunately, several veterinary financing options, such as pet or vet loans, can help if you need help with your pet’s needs. There are also pet surgery financing options or pet loans for bad credit to help you cover the cost of treatment.

What is a pet loan?

A pet loan is a personal loan that can be used to cover pet-related expenses. Pet loans are offered by banks, credit unions and online lenders. Loans can range from $1,000 to $100,000, although how much you receive depends on your credit score and the lender.

Depending on the lender or institution, you can use a pet loan for almost any legal expense, from vet bills to adoption to everyday expenses like food and medicine.

Because pet loans are installment loans, you are assigned a specific loan term, usually between two and five years. Most of these loans have a fixed interest rate, meaning the interest rate does not change over the life of the balance.

Each lender offers its own set of financial requirements, loan terms, rates and fees. Compare lenders and shop around before taking out a loan to make sure you’re getting a competitive offer for your credit health and that you’re not paying more interest than necessary.

Reasons to take out a pet loan

It is highly recommended for pet owners to set aside money in their monthly budget for unexpected pet-related costs and everyday expenses. However, an unexpected medical expense or trip can drain your savings account, even if you prepare.

Pet loans can be a useful tool if your pet suddenly becomes ill or needs specialized care or training (such as service dogs), but you don’t have the funds to cover the full cost. While these loans aren’t recommended as a first option for everyone, if you have no other way to pay for unexpected or high pet-related costs, they can provide some temporary relief to your budget.

Ultimately, taking out a pet loan is best used to finance large, necessary expenses, such as major medical bills or animal support costs.

An operation or major treatments

The bills can be astronomical if your pet needs surgery or major treatments. For example, intestinal blockage surgery in dogs can be expensive up to $7,000. CCL (ligament) surgery can cost owners between $3,000 and $5,000, depending on the severity of the injury.

Most veterinarians require owners to pay at least a deposit before beginning treatment. While many offer financing options, most offer point-of-sale loans with astronomically high interest rates or branded credit cards.

Depending on your credit score, a pet loan is likely to have much lower rates than the in-house financing option offered by most veterinarians and animal hospitals. That’s why it’s best to do your research before even getting your new pet to ensure you have an affordable financing option if a medical emergency arises.

Service, therapy and emotional support for animal financing

The average cost of a service dog can vary across the board $15,000 to $30,000, with the more expensive animals costing up to $50,000. These costs do not take into account daily expenses, such as food, accessories and veterinary care, which average at least $500 annually. Unlike service animals, service animals are limited to specific animals, such as dogs and horses, and are trained to perform specific tasks for a person with a disability.

Emotional support animals do not have official certification programs. They cost much less than a service animal and do not have to meet any specific training requirements.

Because any domesticated animal can be registered as an emotional support or therapy animal, there is no overall average cost for these pets. Still, you will need to pay to see a doctor or licensed therapist who can confirm that you need an emotional support animal.

Due to the reduced training responsibilities required for service animals, they are not allowed in as many public areas as registered service animals. For example, service animals are allowed in grocery stores or retail stores, where service animals may not be welcome depending on the business.

Can you get a pet loan with bad credit?

It is possible to qualify for a personal loan that you can use for vet bills even if you have bad credit. Keep in mind that your interest rate and terms likely won’t be as competitive as they would be for someone with stronger credit.

If your credit score is less than excellent and you need to finance larger expenses, it’s worth exploring veterinary repayment options if they are offered. The lower the credit score, the higher your rate is likely to be. If you are offered a high rate from a traditional lender, compare this to the veterinary financing option. There is a chance that the in-house option will be more affordable in this case.

How to Apply for a Pet Loan

Applying for a pet loan is the same as applying for any other personal loan. While each company’s application process will differ, there are a few steps you can take to improve your chances with each lender.

1. Shop: After checking your credit score and debt-to-income ratio (DTI), review the minimum eligibility requirements of multiple lenders. Choose about three lenders that best meet your needs and that you could qualify for. Pay specific attention to the interest rate and fees and select the lenders likely to offer you the most competitive rates.
2. Prequalify and compare: Prequalification allows you to view your predicted eligibility and potential interest without having to formally apply. This process will not affect your credit score and makes it easier to find the most competitive loan for your financial situation.
3. To apply: Most lenders host a completely online application, while others require an in-person presence. Before applying, check the requirements to ensure you live near a physical location if you need to be present in person during any part of the process.
4. Accept the loan terms: Some lenders approve their applicants in minutes and disburse the money that day. However, not all of them offer this fast turnaround time. After you receive your approval offer, read through the loan agreement before signing the balance so you know how and when you’ll receive your money.

Alternative financing options

If you need help financing your pet’s medical bills or want to purchase a service or emotional support animal, a pet loan isn’t the only option. Depending on the circumstances, alternative financing options can be just as useful as a pet loan:

• Credit: Using credits can help you pay for the high costs of vet bills or service dog training over time. However, the average credit card interest rate is about 20 percent. Keep in mind that you will accrue interest on the balances that you cannot pay back each month unless you have a 0 percent APR card.
• Non-profit aid: Many nonprofits work with people who need service animals. There are programs specifically for veterans, but also programs for people with autism and physical disabilities. Some nonprofit organizations offer grants or loans at low interest rates to help pet owners finance their pet’s medical treatment.
• Payment plan: Your vet may be willing to negotiate a payment plan, which can ease the financial blow by breaking it down into steps. However, not all veterinarians offer this option. It is best to ask to make alternative reimbursement plans as soon as you arrive, should your vet not offer this.
• Pet insurance: Pet insurance covers all or part of veterinary costs, such as procedures and treatments resulting from accidents, illness or general wellness bills. Prices vary between insurance companies and policy coverages.
• Vet schools or low cost vet options: Vet schools often have affordable clinics where students can practice, so your pet can get the treatment it needs at a fraction of the cost charged by other clinics. Depending on where you live, there may be some low-cost vet options, although the clinics may not offer the same services as traditional animal hospitals.

it comes down to

If your pet needs a veterinary procedure or you need a service dog or emotional support animal, a pet loan can be a useful way to cover costs at an affordable rate.

However, a pet loan is still an additional debt that will impact your finances. It can jeopardize your credit if you don’t stay current on payments and pay off the loan quickly. To best protect your finances, research and compare multiple lenders to find the most competitive rates and terms before applying for a pet loan.