Healthcare financing credit cards are quickly becoming more and more popular, with more companies starting to offer them. They're a great tool for some people if used correctly and a great way to get yourself into massive debt if used incorrectly. So, what are they and how can you use them to your advantage?
A healthcare financing credit card is just that- a credit card that you can use to finance any kind of medical procedure. You sign up for the card often at your doctor's office, are approved or denied almost immediately based on your credit history, and then put the entire bill of your medical procedure on the card at the time of service. You work out a payment plan with the credit card company and not with your medical provider. CareCredit is the most popular of these healthcare financing companies. If you choose to pay your bill during a shorter plan between 6-24 months and as long as you consistently make monthly payments you can avoid ever having to pay any interest. This is the only way that we will recommend CareCredit to our patients.
You can get yourself in trouble when you don't pay attention to the amount of interest being charged on your card. When you opt to pay over a longer period of time or you miss a payment these companies charge an obscene amount of interest- up to 29% or even more! So be careful! While a healthcare financing credit card can be really useful in paying your medical bills over time, it can also be really dangerous to your bank account if you're not responsible with it.
As an office we love CareCredit, patients that need work done to maintain a healthy mouth, or even that want cosmetic work done, are given the opportunity to when financially they may otherwise not be able to. Also, we get paid up front and don't have to worry about chasing the patients down for money since CareCredit takes care of that by sending them monthly statements. Wells Fargo and Chase are other companies that also provide patient financing credit cards are.