Pet Financing: Can You Get a Pet Loan?

What is pet financing?

Pet financing is a personal loan that you use to pay for pet expenses. This could be a loan you use to purchase a pet or to pay for other costs like vet bills. A personal loan may not be explicitly marketed as a pet loan, but almost any personal loan can be used to finance pet expenses.

Pet loans are unsecured personal loans; therefore, no collateral is required to secure the loan. This can make it more challenging to get approved, but you don’t risk your collateral being seized if you can’t make the loan payments.

“Pet financing refers to loans or credit lines specifically designed to cover veterinary expenses, pet purchases, or other pet-related costs,” explains Bethany Hsia, co-founder of CodaPet. “Companies like CareCredit and Scratch Pay are prominent providers in this space, offering various payment plans to help pet owners manage unexpected or significant pet expenditures.”

Personal loans have fixed interest rates and terms, so they have predictable monthly payments. This is different from credit cards, which have a variable rate and a monthly payment that depends on what you’ve charged that billing cycle.

How to qualify for a pet loan

Pet loans are personal loans, so the qualification requirements will be the same as for a personal loan.

Exact requirements will vary by lender, but you’ll generally need a credit score of at least 580 and a debt-to-income ratio of less than 40%. You’ll also need to provide proof of your income, such as a W-2, bank statement or tax return.

The lender will check your credit report for recent accounts, credit inquiries and late payments. These factors will help the pet loan company determine your ability to repay the loan and evaluate your history of paying back money you’ve borrowed.

If you can’t qualify for a pet loan on your own, you can consider adding a co-signer. If your co-signer has strong credit and sufficient income, you may qualify if they’re willing to guarantee the loan.

Pet loans pros and cons

The pros of a pet loan are that you will bring a new pet into your life without having to wait to save up for the costs. You may also be giving much-needed medical care to your pet. The cons are that you are adding a new loan to your budget, which will impact your finances until that loan is paid off.

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How to apply for a pet loan

When applying for a personal loan, you’ll need documents to prove your identity and that the information you are providing is correct. Once you have your documents, you’ll want to get preapproved so you can compare loan offers.

When you have selected a loan offer, you’ll then need to formally apply, then accept your loan.

1. Gather your documents

When applying for a loan, it is easier if you get prepared before you start. Each lender is different, but you're likely to need the following documents:

• State-issued ID
• Social Security number
• Proof of physical address, such as a utility bill
• Proof of income, such as W-2s or tax returns

2. Get preapproved

When you are ready to start looking for a loan, consider getting preapproved. To get preapproved, you’ll fill out the loan application, but the lender will not verify your information or do a hard credit check.

Instead, the lender will do a soft pull on your credit, which doesn’t impact your score, and give you estimated loan terms based on the information you provided. This allows you to see if you will qualify and compare loan offers, without impacting your credit.

3. Review the loan offers

If you get preapproved with a few lenders, you can compare loan terms before making a final decision. You can compare interest rates, length of the loan, fees and the minimum payment. Choose the cheapest loan that will best fit your budget.

4. Apply

Once you choose a lender, you’ll need to formally apply. This is where you will upload your documents to verify the information you provided is correct and the lender will do a hard pull on your credit.

You’ll get new loan terms based on the updated information. The more accurate you are with your information when getting preapproved, the closer the final loan terms will be to your estimate. Review the new loan terms and if you are satisfied, sign your loan documents and receive your funds.

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Alternatives to pet loans

If you’re using a pet loan to purchase a pet, you can consider other financing types, such as a 0% APR credit card. You may also want to think about saving up for your pet so that you don’t have to finance buying a pet or its vet bills.

If you’re considering a pet loan to pay for medical expenses, you may want to consider pet insurance, which can cover your pet’s medical expenses. This is similar to how medical insurance works for you: in exchange for monthly premiums, the insurance company will cover some or all medical-related expenses for your pet.

Some veterinarians may also offer payment plans for their services, and you can also consider putting the medical bills on a credit card. We recommend introductory 0% APR credit cards for this.

When reviewing your options, make note of the interest rate and any fees you will be charged when taking out the loan.