Pet financing: Should you get a pet loan?
Key takeaways
- Pet loans are a type of personal loan that can cover pet expenses, including routine care and surgeries.
- Pet loans are also available for purchasing a service, therapy or emotional support animal.
- It’s possible to qualify for a pet loan even with bad credit, but the interest rates will be higher than for someone with good credit.
- Dogs and cats are the most common and least expensive to own, and exotic animals like reptiles and birds are more costly.
Owning a pet can be expensive, so setting aside funds for your pet’s needs from everyday expenses to unexpected medical costs is important. This is especially true if you have or are looking for a service, therapy or emotional support animal because they often need specific training.
If you don’t have pet insurance, or just need additional financial help, veterinary financing options — like pet or vet loans — can help. There are also pet surgery financing options or pet loans for bad credit to help you cover the cost of treatment.
- According to the American Veterinary Medical Association, dogs are the most popular pets in America, and around 45 percent of households own a dog.
- Yearly costs for animals, especially dogs, will vary based on size and breed. For example, data from the ASPCA found that small dogs cost around $43 a month, while large dogs cost an average of $87 — totaling about $500 to $1,000 each year.
- The ASPCA also found that the average cost of owning a cat comes out to $53 a month, or just over $600 per year.
- A trip to the veterinary emergency room can cost you anywhere from $100 to upwards of $10,000, depending on the severity of the condition and the necessary treatment.
What is a pet loan?
A pet loan is a personal loan that can be used to cover pet-related expenses, from vet bills to adoption to everyday costs like food and medication. Loan amounts typically range from $1,000 to $50,000, although how much you receive depends on your income, debt and credit score — as well as what terms the lender offers.
Pet loans have terms between two to five years, and interest rates are typically fixed, so you can expect to make the same payment each month. Each lender has its own set of financial requirements, loan terms, rates and fees. Compare lenders and shop around for low rates before taking out a loan to ensure you’re getting a competitive offer.
Reasons to take out a pet loan
Because vet bills can quickly add up, you should ideally have an emergency fund set aside in your monthly budget for unexpected pet-related costs. That said, only 44% of U.S. adults would pay for an emergency expense of $1,000 or more out of their savings, according to Bankrate’s 2024 Annual Emergency Savings Report. If you’re like most Americans, an unexpected medical expense or trip can drain your savings — even if you prepare.
Pet loans can be a helpful tool if your pet faces a sudden illness, requires emergency care or needs specialized training. While personal loans should rarely be used as your first option, if you have no other way to pay for unexpected pet-related costs, they can help give your budget some temporary relief.
At the end of the day, taking out a pet loan is best used when funding large, necessary expenses, like major medical bills or support animal costs.
Surgery or major treatments
Costs can be astronomical if your pet needs surgery or major treatments. For example, dog intestinal blockage surgery can cost up to $7,000. Most vets require owners to pay at least a down payment before starting treatment. While some may offer financing options, they could be point-of-sale loans with astronomically high interest rates or branded credit cards — both of which can be difficult to afford.
Depending on your credit score, a pet loan may have much lower rates than in-house financing options. Because of this, it’s best to research before you get your new pet to ensure you have an affordable financing option for emergencies.
Service, therapy and emotional support animals
The average cost of a service dog can be anywhere from $15,000 to $30,000, according to the National Service Animal Registry (NSAR). This doesn’t account for everyday expenses, like food, accessories and veterinary care, which average at least $500 annually.
Emotional support animals don’t have any official certification programs. They cost far less than a service animal and don’t need to pass any specific training requirements. And 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 visit a doctor or licensed therapist who can attest to your need for an emotional support animal along with the normal costs of caring for an animal.
How to apply for a pet loan
Getting a pet loan is like getting a traditional personal loan. While every company’s application process will differ, there are a few steps you can take to increase your eligibility odds with each lender.
- Shop around: After checking your credit score and debt-to-income (DTI) ratio, look through multiple lenders’ minimum eligibility requirements. Pick three — or more — lenders that best meet your needs and that you could qualify for.
- Prequalify and compare: You can use a prequalification calculator to estimate your potential interest rate and total cost. In addition, many lenders offer preapproval, which won’t impact your credit score.
- Apply: Most lenders host a fully online application, while others require in-person presence. Before applying, check the requirements to ensure you live close to a physical branch if you need to be in-person for any part of the process.
- Accept the loan terms: After getting your approval offer, read through the loan agreement before signing off on the balance to know how and when you’ll get your funds.
There are personal loans for bad credit that can be used to cover pet and vet costs. However, explore alternatives, like in-house financing or a credit card, first to avoid high interest rates.
Pet loan alternatives
If you need help financing your pet’s medical bills or want to purchase a service or emotional support animal, a pet loan is not the only option. There are several alternatives to a personal loan.
- Payment plan: Your vet may be willing to negotiate a payment plan to help you manage a large bill by breaking it into increments. However, not all vets offer this option, so ask as soon as you arrive if you’ll need to make alternate repayment plans in case your vet does not offer it.
- Credit cards: Using a credit card allows you to pay for the high costs of vet bills or service dog training over time. However, the average credit card interest rate is about 20.55 percent, which is much higher than the average personal loan.
- Nonprofit assistance: Many nonprofit organizations work with people who need service animals. Some non-profit organizations offer grants or loans with low interest rates to help pet owners finance their pet’s medical treatment.
- Pet insurance: Pet insurance covers all or a portion of veterinary expenses, like procedures and treatments resulting from accidents, illness or general wellness bills. Prices vary between insurance companies and amount of coverage.
- Vet schools or low-cost vet options: Vet schools often have affordable clinics that allow students to practice, so your pet can get the treatment it needs at a fraction of the cost quoted by other clinics. Depending on where you live, there may be some low-cost vet options, although clinics may not offer the same services as traditional animal hospitals.
Bottom line
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 the expense at an affordable rate.
However, a pet loan is still an additional debt that impacts your finances. It can jeopardize your credit if you don’t stay on top of monthly payments. To best protect your finances, research and compare multiple lenders to find the most competitive rate and terms before applying for a pet loan.
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