While many people desire to have credit cards that give them rewards and perks, you can also find medical credit cards that can help you cover medical expenses, such as prescriptions, wellness, and beauty needs that aren’t already covered by your insurance. The Care credit card is different than traditional credit cards because it is only used to pay out-of-pocket expenses that aren’t covered by your insurance plan. You can also sometimes get special financing, which might not be available with other cards.
The Care card is accepted at over 200,000 providers throughout the nation (US). Once you have applied for and received a credit line, it can be used at all locations that accept CareCredit. This makes it one of the best credit cards for medical expenses when they come up.
How the Care Credit Card Works
Primarily, you get shorter financing terms with this card, ranging anywhere from six to 24 months without interest charges on the purchases you make that total $200 or more. You can make the minimum monthly payment without incurring interest and ensure that you pay off the full amount at the end of the promotional period to avoid interest charges.
You can also get long-term financing for up to 60 months with a reduced APR and a fixed monthly payment until the bill is fully paid. Of course, there are stipulations. For example, you must make purchases of more than $1,000 to be eligible for the 24-month offer and receive a 14.90 percent APR. You can also get a 36-month offer with 15.90 percent APR and a 48-month offer with 16.90 percent APR. To be eligible for the 60-month offer, you need to make purchases of more than $2,500 and receive a 17.90 percent APR.
While these APRs may seem high compared to a personal loan from a bank, remember that they are significantly lower than other types of credit like payday loans online. So, if you need quick funds to pay for medical needs, than the Care Credit card is looking like a pretty good offer.
How to Apply
If you’d like to have the Care credit card so that you can cover medical/wellness needs not covered by your insurance, you can apply online or by phone. The automated system (online/phone) tells you if you’re approved immediately. You’ll need some information to provide, such as your Social Security Number, net income, address, doctor’s name, and housing information.
Are Medical Bills Killing Your Credit?
Most people have excessively high medical bills because of an illness or emergency. It’s a challenge to know that you have thousands of dollars to pay to a hospital, especially if you don’t have the money. Most people wonder if medical bills are included in the credit score/history. In short, yes, your medical bills are factored into the credit score because it is an unsecured debt on which you owe. It’s important to learn how your medical bills might affect your credit score and what you can do to raise your score while paying down your debt.
What Debt to Pay off First?
Most people understand the need to pay off their debts and live a debt-free life whenever possible. However, if you have credit card debt and medical bill debt, which one should be paid first? The answer might surprise you because most professionals recommend that you pay off credit card debt while letting the medical debt slide. However, that being said, you should talk to the owner of the debt (such as the hospital) to let them know you are aware of the debt owed and work out a payment schedule you can afford, which still allows you to pay off credit cards.
While the Care credit card is another unsecured card that could add to your debt, it also allows you to cover medical expenses that aren’t covered by insurance. Therefore, you can use it to pay off medical debt from hospitals, which helps you lower medical debt while still paying off your credit cards.
Here are some other articles you might find helpful:
Your guide to gas cards for bad credit
Navy Federal More Rewards Card review
The Pros and Cons of the Delta Skymiles American Express Card
Looking for store credit cards for bad credit? Here are your best options