Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations. Bottom Line While CareCredit may be a financing option for people facing a large medical expense, potential cardholders should be aware of high standard APRs following promotional low or deferred interest periods and be prepared to do their own math to figure out an equal minimum monthly payment that will allow them to pay off the entire balance and avoid interest.
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To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. Chauncey Crail Contributor. Dia Adams Editor. You may qualify for a monthly payment plan directly through your provider, possibly without fees or interest.
Contact your provider to discuss your eligibility. A balance transfer credit card. You typically need good or excellent credit to qualify and you may pay a transfer fee.
Flexible financing options from an existing credit card. Some large credit card issuers now allow you to either turn your available credit line into an installment loan at a lower ongoing APR , or break up an individual card transaction into predictable monthly payments. A personal loan. The CareCredit Card offers longer loan terms for lower interest rates, but depending on your credit history and financial situation, you may qualify for even better rates with a personal loan.
You can use it only on certain health care purchases. Your account is available immediately upon approval. On a similar note Dive even deeper in Credit Cards. You can't use it anywhere or for anything; rather, it's intended to pay for medical expenses at various hospitals, veterinary clinics, dental centers, and private medical practice firms, along with healthcare-related retailers and pharmacies: some , providers in all.
Also, the financing terms tend to be different from a regular credit card's. If you do not, interest is charged from the original purchase date, at an annual percentage rate APR that can be as high as It can be, especially if you incur a major medical expense that's not covered or not sufficiently covered by health insurance, and the provider doesn't accept credit cards.
However, CareCredit functions more like a loan than a credit card. It offers payment plans of varying durations, during which you make minimum monthly payments toward the debt. You don't pay any interest during that time, but if you haven't paid off the entire balance by the end of the term, you're charged interest at a steep rate currently And of course, regular credit cards can be used in more places, and offer cash back or rewards, too.
CareCredit probably is easier to get than a regular credit card, though—one of the reasons its interest rates are higher. First, check to see if your provider privately offers some sort of pay-over-time arrangement. Many large practices and facilities have repayment plans that don't charge interest or fees as long as you pay regularly. If it's available through your health insurance plan, consider establishing a Health Savings Account HSA : You contribute money on a pretax basis—usually taken out of your paycheck—and your money gets the chance to grow tax-free until you use it for qualified healthcare expenses.
If you're on your employer's group insurance plan, there's a similar tax-advantaged account, the flexible spending account FSA —but you usually have to use up all the funds in it within the year you contribute them. Because CareCredit functions somewhat like a loan, with a set repayment period, you might consider just taking out a personal loan from a bank or credit union instead.
You'll pay interest along the way, but it's likely to be at a lower rate than the interest charged by CareCredit if you don't settle your entire debt by the period's end. Finally, consider using a regular credit card as an alternative to CareCredit.
The minimum payments may well be lower. These promo periods often extend for 18 or 24 months, which are as long as CareCredit's. And even if you haven't paid in full by the time the promo ends, you'll probably incur a lower interest rate—and just on the remaining balance, too.
Healthcare credit cards provide a way to make medical expenses more manageable. Of course, consumers must remember that the financing behind these credit cards is provided by for-profit companies that are in business to make money. If you're not careful, you can incur significant expenses from the associated fees.
Like all credit cards , healthcare-oriented credit cards should be used in a cautious and responsible manner because failure to abide by the terms of the account agreement will be reported to credit bureaus and hurt your credit score.
This includes reading the fine print and having a complete understanding of terms and associated expenses. Consumer Finance Protection Bureau. Consumer Action. Pet Insurance. Credit Cards. Health Insurance. Loan Basics. Your Privacy Rights. To change or withdraw your consent choices for Investopedia.
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