Many families love to own pets as part of their family unit and to teach their children age-appropriate responsibility in caring for a pet. Pets also contribute to the family’s mental well-being and encourage children to nurture other life. Some people choose to rescue a pet; others decide to pay for a purebred or exotic pet for their home. Pet loans are for buyers who wish to purchase a pet and cover the cost of veterinarian services.
How Pet Loans Work
When applying for a pet loan, you will provide the same information you would for any other loan. If you have less than perfect credit score and history, some pet loans are available to help to improve your score. You will receive your approval or denial either online or in a letter in the mail. If you are approved, you will find out the value and payment terms. Often these are not negotiable, but I always abide by the idea that “it never hurts to try.” Your credit history will determine your interest rate (people with less than stellar credit history should be wary), you are not required to put any money down, and you can make prepayments on your account.
Is It a Good Idea?
It really depends on your financial situation and how you want to use the loan. If you can fit loan payments into your budget and sustainable income to handle a pet, it would be perfectly fine. However, if you are someone with an income that isn’t stable or a credit history that isn’t favorable, then I would recommend caution. Financing to purchase a pet is fairly new and one that I wouldn’t use. I prefer the method of saving up and then buying the pet. At the same time, if you have low credit and enough to buy the pet, then the loan could be a great way to boost your credit score. When we look at the aspect of covering veterinarian care, I would recommend the loan for when there is a major illness, surgical needs, or severe injury.
Other Things to Consider
There are so many things to consider when considering whether a pet loan is worth it. Firstly, what happens if you suddenly lose a job or your home and you now must worry about pet care and your family? What if something major happens that turns your budget into a tangled mess? Many payments for these pet loans range in the hundreds, and the interest rates are astronomical.
Companies will have interest rates that are within the 36%-150%, that is a lot higher than many credit cards! Secondly, you’re basically leasing your pet. You default, and they could very well take your pet from you. Can you imagine having your pet taken from your home? Lastly, there are so many ways to get a loving pet that doesn’t require you to finance obtaining one. A visit to your local animal shelter can help you find the perfect addition. There is no way to place a true financial value to a part of your family.
Overall, I wouldn’t recommend financing a pet, but I would recommend looking for financial assistance to cover those big veterinarian expenses that occur over their lifetime.