The short version
- A cosmetic surgery loan is a personal loan for procedures Medicare and health funds don't cover.
- Get a full written quote, including anaesthetist and hospital fees.
- Think about how you'd repay if recovery takes longer than planned.
Paying for cosmetic surgery with a personal loan
Medicare and private health insurance usually don't cover cosmetic procedures, so the whole cost is yours. A cosmetic surgery loan is a personal loan used to spread it over one to seven years. Any general-purpose loan above can be used this way, and most are unsecured.
Get a written quote that includes the surgeon, anaesthetist, hospital and follow-up care, and allow for the cooling-off period surgeons must give before cosmetic surgery. Borrow only once you're sure.
How to compare cosmetic surgery loans
Look at the comparison rate as well as the interest rate. The comparison rate adds the lender's standard fees to the interest rate for an example loan, so it shows the cost of two loans on the same footing.
Then look at:
- The term and repayments. Check how long the loan runs, what each repayment would be, and whether there's a fee to pay it off early.
- Fees. Look for establishment fees and monthly fees, which add to the cost.
- The amount. Make sure the loan covers the full quote, or only the part your savings can't.
- Who can apply. Check the lender's criteria on age, residency, income and employment before you apply.
- The lender. Check it holds an Australian credit licence and is a member of AFCA, and read what other borrowers say.
Pros of a cosmetic surgery loan
- You can spread the cost of a procedure that matters to you into fixed repayments.
- A personal loan usually has a lower rate than a credit card's standard rate.
- Most are unsecured, so you don't need to offer your car or home as security.
- You can choose a term with repayments that fit your budget.
Cons of a cosmetic surgery loan
- Unsecured loans have higher rates and fees than secured ones.
- You may be repaying the loan for years after the procedure, so be sure it's worth it to you before you apply.
- Lenders check your income and credit history, so not everyone is approved.
Your protections
Personal loans from licensed lenders are covered by the National Consumer Credit Protection Act. Lenders must check the loan is not unsuitable for you, and you can complain to the Australian Financial Complaints Authority (AFCA) if something goes wrong.
Look at the comparison rate as well as the interest rate. The comparison rate adds the lender's standard fees to the interest rate for an example loan, so it shows the cost of two loans on the same footing.
Alternatives
- Saving first. If the cost can wait a few months, saving for it costs nothing in interest, and a high interest savings account pays you instead.
- A payment plan with the clinic, if it offers one.
- A low rate or interest free credit card. For a smaller amount you can repay within a year or so, a card's interest free period can cost less. Pay it off before the period ends, as the rate afterwards is usually higher.
What you'll need to apply
Most lenders ask for the same things, and having them ready speeds up approval.
- Proof of identity, such as a driver's licence, passport or Medicare card.
- Proof of income, usually your last two payslips, or tax returns and financial statements if you're self-employed.
- Details of what you spend each month and what you already owe, including credit card limits.
- Your address history and, for a secured loan, details of the asset you're offering as security.