Medical bills can be a significant burden, but understanding your payment options is key. While a dedicated health credit card or even the best credit card for medical expenses might seem appealing, it’s crucial to weigh all factors. CardRatings’ editors can help you explore what they consider the best credit cards for medical expenses to potentially ease the financial strain of your next doctor’s visit.
However, using a credit card for medical expenses isn’t always the optimal solution. If you have the means to pay your bill in full with cash, inquire about potential “cash discounts” offered by some medical facilities. Additionally, explore the possibility of establishing a zero-interest payment plan directly with the provider. If you anticipate carrying a balance on your credit card for health care beyond the due date or the introductory 0% APR period, the accrued interest charges will likely outweigh any rewards earned. Therefore, thorough research and careful consideration of your financial situation are essential. Ask detailed questions about all available payment methods and evaluate each option to make the most informed decision for your specific circumstances.
How to choose a health credit card to pay medical expenses
When choosing a health credit card (also sometimes referred to as a credit card for health care or a credit card for medical expenses), prioritize cards with a 0% introductory APR period to avoid interest on your medical debt. Also, consider cards with low ongoing APRs for any remaining balance after the intro period ends. While rewards are a bonus, they shouldn’t be the primary focus if you anticipate carrying a balance. Carefully compare terms, fees, and your ability to repay before committing to the best credit card for medical expenses for your situation.
Best credit cards for medical expenses
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Frequently asked questions about health credit cards
What are the options for paying medical bills?
When it comes to paying medical bills, each institution likely has their own policies, but there are some common options that could be available depending on your situation.
Some facilities will offer a discount if you choose to pay your bill all at once by cash or check. This can be a substantial savings if you are in a position to do it.
More commonly, many facilities have a credit department and are willing to work with a patient (or their family) on a payment plan. Often, this will be a zero-interest program. It might require setting up a monthly “electronic check” payment that will take the money directly out of your checking account each month.
Credit cards are also an option. Nearly all medical facilities accept multiple types of credit cards, with Visa and Mastercard the most widely accepted. If you use the right card and budget properly, you can pay off that bill without building up interest charges.
What is a medical credit card?
A medical credit card is usually thought of as a credit card solely designed for medical purposes. That is, they are marketed to hospitals and doctors’ offices and sometimes even veterinarians as a way to pay for patient care.
Usually, there is a period of time, maybe as much as 18 months, and maybe as little as six months, where you can make your payments – and if you pay it all off in the allotted time, you won’t have to pay any interest.
Should you pay your medical bills with a credit card?
Using credit cards for medical bills requires careful consideration. While they can provide a temporary buffer for payments and offer rewards, unpaid balances accrue interest, unlike potential payment plans or discounts some medical facilities might offer directly.
However, a credit card for health care featuring a 0% introductory APR, whether for new purchases or balance transfers, can be a strategic tool. It offers an interest-free window to manage large medical expenses and potentially earn rewards. Just be mindful of the promotional period’s end, as standard APRs will then apply, making it crucial to pay down the balance significantly beforehand.
Avoid using a health credit card solely for rewards on a bill you can’t afford to repay quickly. In such cases, negotiating a payment plan with your medical provider is likely a more cost-effective solution, as it typically avoids interest charges altogether. Evaluate your financial situation and the specific terms of any credit card for medical expenses to determine the most responsible approach.
Is a medical credit card worth it?
Whether a health credit card is worth it is a nuanced question. For some, particularly those who can diligently pay off the balance within the promotional period, it can be a useful tool to manage medical expenses without incurring interest. The danger lies in the deferred interest model common with many credit cards for health care.
Imagine a $5,000 medical bill paid with such a card offering a 0% APR for a set time. If the entire balance isn’t paid off by the deadline – even by a small amount – you could be retroactively charged interest on the entire original $5,000. This differs significantly from traditional credit cards for medical expenses with 0% introductory APRs, where interest would only accrue on any remaining balance after the promotional period.
Therefore, while a medical credit card is arguably better than delaying necessary treatment or resorting to high-interest options like payday loans, it’s essential to understand the deferred interest risk. A conventional credit card with a 0% intro APR and cash back could potentially be more advantageous if you can manage it responsibly. However, in many situations, negotiating a direct, interest-free payment plan with your healthcare provider remains the safest and most straightforward approach to managing medical bills over time.
For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.
