5 Best Loans for Paying Off Medical Expenses in Pennsylvania

Managing medical expenses can be challenging — even for insured individuals in the Keystone State. Although most employers in construction provide health benefits to workers, cost-sharing mechanisms can expose individuals with acute or chronic medical needs to debt.

While medical bills are less impactful on people’s credit — thanks to fairly recent changes in the medical loan sector — these expenses can follow anyone around and have costly financial consequences. 

Discover the best loans for paying off medical expenses in Pennsylvania and learn how to compare them accordingly.

The Top Loans for Medical Expenses in Pennsylvania

These are the five best loans to pay off medical expenses in Pennsylvania.

1. PSECU Personal Loan

PSECU — or Pennsylvania State Employee Credit Union — offers personal loans that can give borrowers access to $1,000 to $20,000 to consolidate past-due medical bills. They’re unsecured, so there’s no need to pledge assets, such as a car or house. This digital-first bank lets borrowers break their loans into one to 84 installments, giving them tremendous flexibility to manage payments and avoid delinquency. 

Newsweek has named PSECU one of the best regional credit unions in the United States for two years, which speaks volumes about its commitment to customer service. After approving a personal loan application, PSECU will release funds within days.

2. PNC Medical Loan

PNC’s medical loans pay for planned and unexpected health care costs, including major surgeries, dental procedures, fertility treatments, prescriptions and out-of-network charges.

These loans require no collateral, have no application and origination fees, and involve no prepayment penalty. Their amounts range from $1,000 to $35,000. Consumers can apply for a medical loan and ask about term options online or over the phone. Alternatively, applicants can drop by any of PNC’s more than 250 branches in Pennsylvania.

3. The Medical Bureau of Pittsburgh No-Interest Loan

The Medical Bureau offers short-term, interest-free patient financing. This no-interest loan is perfect for uninsured and underinsured individuals with out-of-pocket medical expenses, including dental procedures, elective cosmetic treatments and pet care costs.

This members-based organization pays health care professionals directly, so no money goes through borrowers. The Medical Bureau’s no-interest loan applies only to patients of its members — mostly members of medical societies in Western Pennsylvania and the surrounding areas.

This nonprofit accepts loan applications over the phone. Applicants must prove sufficient income and good credit to qualify. Once approved, borrowers can make one-time or recurring monthly payments using a credit card or bank account. Payers can use their financial institution’s online banking service by setting up The Medical Bureau as a vendor account. Borrowers can mail a check or money order to the organization’s Pittsburgh office.

4. Penn Community Bank Personal Loan

Penn Community Bank lends between $5,000 and $25,000 through personal loans. These amounts are typically enough to consolidate unpaid medical bills and other high-interest debts.

Personal loan applications are subject to income and credit approval. The largest mutual bank in Eastern Pennsylvania permits prepayment. Penn Community Bank prefers to discuss repayment options during interviews. Applicants can contact the institution by phone or visit any of Penn Community Bank’s 21 locations across Bucks, Lehigh and Montgomery counties.

5. First National Bank Unsecured Installment Loan

First National Bank’s unsecured installment loans let individuals borrow anywhere from $2,500 to $50,000, making them ideal for paying off larger medical expenses.

This Pittsburgh-headquartered national bank promises flexible repayment terms, predictable repayment schedule and fixed interest rates. Borrowers can set up automatic monthly payments. First National Bank also accepts online, mail and in-branch payments. It has more than 480 locations statewide.

Factors to Consider When Comparing the Best Loans for Paying off Medical Expenses

Some Pennsylvania loans are more advantageous than others for paying off medical expenses. Consider these factors to determine which ones are worth taking out.

• Annual percentage rate (APR): The APR represents the yearly cost to borrow funds, taking the interest rate and fees into account.
• Maximum loanable amount: This dictates whether borrowers can loan enough money to pay off 100% of their medical debts with a single loan.
• Eligibility: Lenders generally prefer some borrowers, judging applicants’ creditworthiness based on credit history, income and debt-to-income ratio. 
• Security: Unsecured loans don’t require collateral, but secured ones do. The lack of collateral reduces the risk borrowers absorb but incentivizes lenders to charge higher interest rates.
• Loan term: Shorter terms inflate monthly payments but minimize the overall interest charged since the principal balance shrinks more quickly. Conversely, longer terms render installments more manageable in exchange for more interest.
• Repayment methods: The more diverse the options, the lower the risk of missing payments. More choice means convenience, as moving funds between accounts to use certain payment processors can cost money. Some institutions also prefer checks and money orders over electronic payment methods.
• Approval speed: Credit decisions involving unsecured loans can take anywhere from a few hours to several business days, depending on the adequacy and accuracy of the documents borrowers submit and the lender’s underwriting process.
• Prepayment: This option enables borrowers to pay off the loan ahead of schedule to save on interest — although many lenders penalize this practice to discourage it and make up for the interest earnings they stand to lose.

Frequently Asked Questions

1. Do Unpaid Medical Bills Appear on Credit Reports?

No, unpaid medical bills shouldn’t appear on credit reports. Several events have rendered them irrelevant in credit decisions.

In July 2022, all national credit reporting agencies in the United States decided to immediately remove medical collection accounts once paid from consumer credit files instead of letting them linger for about seven years. These entities also extended the window before unpaid medical collection accounts can creep into credit reports from six months to one year.

In April 2023, Equifax, Experian and TransUnion agreed to exclude medical collection debt under $500 from American credit reports.

In January 2025, the Consumer Financial Protection Bureau finalized a rule prohibiting creditors from using consumers’ medical information when making lending decisions. This move removes $49 billion in medical debts from the credit files of 15 million Americans. It bans credit bureaus from including medical bills in credit reports moving forward.

The bureau found that medical debt is a poor predictor of a person’s ability to repay loans. Without its inclusion on credit reports, the credit scores of medically indebted individuals would be tens of points higher.

Medical debt is a financial obligation one should resolve and budget for if possible. Debt collectors can sue consumers for the medical bills they owe, allowing them to garnish debtors’ wages or place liens on their assets if they win. Pressure from debt collection may compel consumers to declare bankruptcy.

2. Is It Smart to Get a Loan to Pay off Debt?

Getting a loan to pay off debt is a smart way to consolidate various medical bills when all noncredit methods are ineffective or insufficient.

Consumers should seek ways to have their debts forgiven. If medical debt forgiveness isn’t possible, financial assistance to help cover some expenses helps. Many public agencies and private organizations fund prescriptions and medical services not covered by health insurance.

Moreover, medical debtors dealing with debt collectors should negotiate to pay less than they owe or have a more manageable payment plan. Medical bill advocates can also help lower debt balances by spotting health care billing errors, identifying overcharges and negotiating on behalf of consumers.

3. Is Debt Consolidation a Good Idea?

Debt consolidation is a good way to pay off medical bills. Borrowing an amount big enough to cover everything owed effectively converts multiple medical debts into a single financial obligation.

Psychologically, less debt volume creates the perception of debt manageability. In most cases, past-due medical expenses become more manageable when turned into a single installment loan. Amortization ensures monthly payments are predictable, albeit more expensive, due to interest.

More importantly, gaining sufficient funds to pay a debt collector completely may help reduce the stress associated with medical debt repayment.

4. Is a Loan Better Than a Credit Card?

Loans are better than credit cards for medical debt consolidation. Loans simplify repayment with predictable installments and straightforward fees.

On the other hand, credit cards generally apply exorbitant interest to past-due balances. While card providers may defer interest charges, delinquent cardholders must pay them eventually.

5. Which Loan Is Easy to Borrow?

Unsecured loans are the easiest to borrow. Their loan amounts are relatively small, so the funding process is faster.

Moreover, lenders approve applications for these financial products more quickly because there’s less documentation involved. No collateral requirement means borrowers don’t have to provide papers related to an asset or assets intended to secure the loan.

Taking Out the Best Loan to Pay off Medical Expenses in Pennsylvania

PSECU, PNC, The Medical Bureau of Pittsburgh, Penn Community Bank and First National Bank offer the best loans to consolidate and pay off medical expenses in the state. Interested parties should contact all of them to see which provides the most favorable deal and best aligns with their needs.