Dogs, cats and other pets bring great joy to our lives, but caring for them can get expensive. Americans spent $123.6 billion on their pets in 2021, according to the American Pet Products Association.
From routine vet visits to medical treatment, the costs of caring for a pet may start to exceed your budget. If you’re not able to pay for your pet’s expenses out of pocket, you might consider a pet loan—but watch out for interest charges and fees.
What Is a Pet Loan?
A pet loan is a personal loan designed to cover pet expenses that you pay off over time with monthly payments. Banks, credit unions and online lenders all offer personal loans, though they may or may not call them pet loans.
Personal loans are typically unsecured, meaning they require no collateral. Plus, they often come with a fixed interest rate that stays the same over the life of your loan.
Let’s say you borrow a pet loan for $4,000 with an annual percentage rate (APR) of 10%. If you chose a five-year term for your pet loan, you’d make monthly payments of $84.99 and pay a total of $1,099 in interest charges.
It’s worth noting that personal loans can be used for just about any expense, so you don’t need to limit your search to pet loans. If you opt for a general personal loan, you can use that to cover the costs of caring for your pet.
How to Apply for a Pet Loan
If you’re interested in pet financing, here are the general steps you’ll need to take.
- Review your credit. Since most pet loans are unsecured, a lender bases its approval decision on your credit and income. Before you apply, check your credit score and review your credit report via AnnualCreditReport.com so you know what you’re working with. The stronger your credit, the better rate you could get on a pet loan.
- Shop around. Every lender is different, so it’s worth checking your rates with at least three to find the best offer. Some lenders let you prequalify online, meaning you can check your rates with no impact on your credit score.
- Compare offers. Once you’ve received some loan offers, compare them to see which is the most affordable. Consider interest rates, fees and repayment terms to see which best fits your budget. A personal loan calculator can show you monthly payments and long-term costs.
- Check in with your budget. Before choosing a loan, make sure that you’ll be able to afford the monthly payments. Falling behind on a loan can have bad consequences, including damaging your credit, so check that you can afford to pay back the money before you borrow.
- Submit your application. If you decide to move forward, you’ll submit a full application with your personal details and any required documents, such as pay stubs or bank account statements. At this point, the lender will run a hard credit check, which may temporarily ding your credit score.
- Receive your loan funds. Some personal loan lenders can review and approve your application in a single day, while others take a little longer. Once your application is approved, you should receive the funds directly in your bank account.
- Pay your loan back on a monthly basis. You’ll likely start making payments on your loan right away. It’s a good idea to set up autopay to ensure you don’t miss any payments.
Can You Get a Pet Loan With Bad Credit?
Qualifying for pet financing can be difficult if you have bad credit, but it’s not impossible. Every lender sets its own requirements for credit and income. Since some lenders are more flexible than others, it’s worth shopping around to see if one will work with you.
If you have bad credit, though, you may be subject to lower loan amounts and higher interest rates than someone with strong credit. Some veterinary clinics offer pet financing options, allowing you to spread out payments over time. Pet financing from a vet may not require a credit check at all.
If you come across other no-credit-check loans from online lenders, be wary of borrowing one. These are likely payday loans with sky-high interest rates and fees. Although you might be able to access funds, you could get trapped in a cycle of debt that’s difficult to pay off.
Average Cost to Take Care of a Pet
The costs to care for a pet vary depending on the animal and other factors. Dogs tend to be more expensive than cats, and both of these popular pets incur higher costs than birds, reptiles and fish.
Dogs
Dogs are both the most popular and expensive pets in the U.S. The average cost of caring for a dog is $1,391 per year, including roughly $300 on food and $225 on routine medical visits.
Adopting your furry friend may cost an additional $1,030, including $300 for spaying or neutering and another $300 for medical checkups and vaccines. Expect additional costs such as toys, treats, dog beds, crates and training materials, as well.
Cats
Caring for a cat will typically cost less than a dog. The American Society for the Prevention of Cruelty to Animals (ASPCA) puts a cat’s annual expenses at $1,149 per year, including $225 for food, $160 for medical care and $140 for preventative medications.
You might pay $455 when you first adopt a cat, including $150 for spaying or neutering, $175 for medical visits and $40 for a carrier.
Birds
The average annual cost of caring for a pet bird is $185, including $75 for food, $25 for toys and treats and $85 for veterinary bills. A bird cage typically costs around $70, but you’ll likely pay more for bedding, perches and toys.
The cost of adopting a bird can vary widely. Some birds, like parakeets and finches, could cost only $10, while cockatoos and macaws could cost $5,000 or more.
Reptiles
Reptiles typically cost somewhere between $190 and $350 annually, with lizards on the lower end of this range and iguanas on the higher end. Pet snakes can cost up to $450 per year. These costs include vet care, food, cages, tanks, heat lamps and other supplies.
Fish
The cost of keeping fish can vary widely. A simple bowl setup may cost just $10 to $20 with fish that range from $3 to $12. Fish tanks, however, can cost $200 or more, with saltwater tanks and fish costing significantly more than freshwater ones. Kiplinger estimates the total lifetime cost of keeping fish to fall between $270 and $410.
How You Can Use a Pet Loan
You can use a pet loan for any expense associated with pet care, including veterinary treatments, surgery and other medical bills. Financing pet bills with a pet loan may be more affordable than charging them to a credit card.
You might also borrow a pet loan to cover the costs of a service, therapy or emotional support animal. Service dogs are highly trained, and adopting one can cost anywhere from $15,000 to $30,000. If you adopt an emotional support animal, you may also need to pay for a visit to a doctor or therapist who can attest to your need for a therapy pet.
Other Pet Financing Options and Considerations
Outside of pet loans, you may also explore other options for pet financing. As mentioned, some vets will allow their customers to spread payments out over time.
There are also a number of nonprofit organizations that offer assistance, such as the American Veterinary Medical Foundation, Bow Wow Buddies, Waggle Foundation and Magic Bullet Fund. Look for both national and state organizations that could help with pet financing.
You may also consider a credit card, but be careful of high interest charges. Healthcare credit card CareCredit offers 0% interest if you pay back your balance within 24 months, but you’ll have to pay deferred interest if you still carry a balance after this period.
Finally, it may be worth exploring your options for pet insurance, which can help defray costs. Although pet insurance typically doesn’t cover pre-existing conditions, it can cover a large percentage of costs that come up in the future.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
