Although more than 225,000 providers accept the CareCredit Card, it is not a general-purpose card that you would use for non-medical transactions.
Five things concerning the CareCredit Card are listed below.
1. You can only use it for specific medical purchases.
At healthcare and wellness organizations that have signed up with CareCredit, you can use the CareCredit Card. The CareCredit Card is accepted by a wide range of healthcare professionals and establishments, although your preferred doctor might not. You can look for local doctors who accept the CareCredit Card if you're expecting a medical bill that you'd like to finance.
The following list of enrolled providers is not exhaustive:
- Specialists in medicine, dentistry, optometry, dermatology, and cosmetic surgery.
- Hospitals, operating rooms, imaging centers, and lab work.
- Pharmacies, medical equipment, and supplies.
- Spa treatments and fitness equipment.
- Routine and emergency veterinary care.
2. It's a card with delayed interest.
There is a catch with no-interest promotional periods offered by deferred interest cards like the CareCredit Card. You will be responsible for paying interest on the whole amount of the original loan, not just the outstanding balance, if the balance is not paid in full by the end of the promotional period.
These short-term financing options are available with the CareCredit Card: no interest for 6, 12, 18 or 24 months on purchases of $200 or more. A staggering 26.99% annual percentage rate (at of this writing) will be charged on every dollar you initially funded if you don't pay the loan back in full.
3. It may also be a low-interest credit card.
You can choose longer-term financing with a reduced interest rate for higher medical bills instead of a 0% introductory APR promotion. Purchases of $1,000 or more as of this writing are eligible for:
- APR of 14.9% for 24 months.
- APR of 15.9% for 36 months.
- APR of 16.9% for 48 months.
A 60-month loan at 17.9% may be available for purchases costing $2,500 or more. Until your balance is paid in full, you must make fixed monthly payments for each of these financing choices.
4. Upon approval, your account is immediately accessible.
Unpredictable though it may seem, you can start using a new CareCredit Card account as soon as your application is accepted, even if your physical card hasn't yet arrived in the mail. Therefore, you are able to apply from the doctor's office and pay your bill using the card.
5. You can use it as one of various options to pay for medical bills.
For significant medical costs, the CareCredit Card is unquestionably a possibility, but depending on your circumstances, you might want to examine alternative options.
Start by looking for methods to save costs. Through your health insurance plan, you can be qualified for discounts on specific treatments, medical supplies, and wellness initiatives. Make sure you're being charged accurately before you pay a medical bill, as mistakes might cost you money. You might be able to bargain with the provider for a lower price.
Here are some alternative payment options after receiving your final bill:
- A payment schedule. Directly through your provider, you might be eligible for a monthly payment plan that is possible fee- and interest-free. To discuss your eligibility, get in touch with your provider.
- A credit card with 0% interest. A credit card offering 0% interest on new purchases can provide you time to pay off a balance for anticipated medical costs. And unlike the CareCredit Card, if you don't make your payments on time, these cards won't charge you interest on the original amount borrowed. You will only be responsible for paying interest on the unpaid balance.
- A charge card for balance transfers. If you've already put a medical cost on your credit card, you can transfer your debt to a credit card that offers 0% APR balance transfers. To qualify, you usually need outstanding or excellent credit, and you might have to pay a transfer fee. However, once more, if you still owe money after the 0% APR promotion expires, it will only be on the remaining balance and not on the entire amount you originally transferred.
- Possibilities for flexible financing with an active credit card. You can now split a single card transaction into predictable monthly payments or convert your available credit line into an installment loan with several sizable credit card providers (at a lower ongoing APR).
- A private loan. The CareCredit Card offers longer loan terms at reduced interest rates, but a personal loan may offer you even better terms based on your credit history and financial position.
