Medical Credit Cards

Medical credit cards are specialized credit cards used to finance medical expenses, and many come with a dangerous deferred interest feature. However, these cards only work for certain health care expenses and with specific types of medical providers, and they cannot be used for any other types of expenses.

Key Things to Know About Medical Credit Cards

• Patients can use these credit cards to pay for out-of-pocket health care expenses, such as elective health care procedures, dental care, co-pays, co-insurance, and veterinary services.
• Health care professionals may offer these credit cards to their patients as a way to pay for their medical services. Many medical credit cards are issued by credit card companies that specialize in retail store credit cards, such as Comenity Bank and Synchrony.
• Medical credit cards may have deferred interest, which retroactively applies interest from the date of purchase if you pay late.
• High interest rates and conflict of interest concerns regarding health care professionals steering patients toward medical credit cards has brought the industry under significant scrutiny.

Opinions and ratings are our own. This study is not provided, commissioned or endorsed by any issuer. WalletHub independently collected information for some of the cards on this page.

Best Medical Credit Cards Comparison

How Medical Credit Cards Work

Much like store credit cards can only be used at the retailers whose branding they bear, medical credit cards can only be used for medical expenses — and only certain kinds, at that. Some examples of care that can be paid for with medical credit cards are provided below.

Examples of Health Care Payable With a Medical Credit Card

• Dental care & orthodontic procedures
• Cosmetic care (including some cosmetic surgery)
• Vision care (including LASIK surgery)
• Audiological care (including hearing aids)
• Veterinary care
• Chiropractic care
• Dermatology
• Weight loss programs & surgery
• Fertility treatment
• Hair removal or restoration
• Co-pays, co-insurance, & deductibles for expenses covered by insurance
• Emergency room visits
• Urgent care clinic visits

Pros & Cons of Medical Credit Cards

While it’s certainly no surprise that an alternative means of paying for medical care has become so popular, considering the current economics of the health care market, it is fair to wonder whether these medical credit cards are any good. There are distinct advantages and disadvantages to using a medical credit card, as you’ll see below, and each should be weighed cautiously.

Pros of Medical Credit Cards

Prompt Access to Funds

Medical credit cards are known for their swift application and instant approval processes, which may take place conveniently at a health care professional’s office. Patients can quickly access otherwise unaffordable health care.

Wide Applicability

Medical credit cards are widely accepted in the health care community, and the cards are also eligible to pay for a variety of different procedures. Some cards are even designed specifically for use within a network of providers.

Pay Over Time

One of the core benefits of a medical credit card, as with any financing offer, is the ability to repay your expense as you go. This reduces the immediate financial barrier to getting a procedure done, but it also means that debt will be with you for a while.

Cons of Medical Credit Cards

Deferred Interest

Medical credit cards usually offer a 0% or otherwise low introductory interest rate to attract new customers. This introductory rate will last between 3 and 24 months, known as a “promotional” or introductory period. If a patient fails to pay their balance in full by the end of the promotional period, a high regular interest rate kicks in and applies retroactively to the cardholder’s entire original balance.

The regular interest rates for medical credit cards can range from 12.99% to 32.99%. It is likely that the deferred interest feature on a medical credit card will be triggered since these cards are typically used for unaffordable procedures.

Conflict of Interest & Lack of Competition

Many health practitioners offer medical credit cards to their patients during a visit, often right after a procedure or prior to treatment. This can lead to a patient agreeing to a medical credit card without first learning about all the associated risks or considering other options.

Tempting for Unnecessary Procedures

Medical credit cards are offered to patients as a convenient alternative financing option. However, the cards are ultimately meant to drive more business to health care providers, some of whom have reportedly encouraged patients to pursue unnecessary procedures.

Controversy with Medical Credit Cards

Medical credit cards have come under regulatory fire for a number of issues in recent years, including extreme marketing tactics and deceptive lending practices. The following are some of the most common complaints from patients:

• Lack of Adequate Disclosures: Patients often do not receive information regarding the basic terms of medical credit cards, including a copy of the account agreement, when presented with the opportunity to apply for one.
• Poorly Timed Solicitation: The application process is often rushed. Some patients are solicited with a credit card offer before, during or after a procedure.
• Deceptive Lending Practices: Patients are often misled to assume they are signing up for an interest-free payment plan with their health care provider. They are not informed that they are signing up for a credit card that is accompanied by an underhanded deferred interest plan.
• Pushy Marketers: Some customers have complained about receiving promotional emails from their card issuers, enticing them with various potentially unnecessary medical procedures that the cards could help finance.

Medical Bankruptcies and the CFPB’s Predatory Lending Inquiry

Health care expenses are the leading cause of personal bankruptcy in the U.S. and account for more collection activities than any other type of debt. From 2018 to 2020, Americans charged about $23 billion in health care costs to medical credit cards and loans with deferred interest, and they paid $1 billion in deferred interest in that timeframe, according to a 2023 report from the Consumer Financial Protection Bureau (CFPB).

A joint inquiry launched in July 2023 by three federal agencies – the CFPB, the U.S. Department of Health and Human Services, and the U.S. Department of Treasury – aimed to collect feedback from the health care industry and people who use medical credit products in order to identify predatory practices. This inquiry began 10 years after the CFPB ordered CareCredit to refund $34.1 million to customers due to deceptive enrollment practices.

In June 2024, the CFPB released an update with preliminary findings from the inquiry, including that medical credit card products often charge higher interest rates than most other credit-based methods of payment, and that patients are sometimes presented with credit offers while incapacitated and unable to make educated decisions. Some patients reported that they were offered credit products to pay, even when they should have been eligible for financial aid. To share your experience with medical credit cards, use the CFPB’s “Tell Your Story” portal or submit a complaint on the CFPB website.

Alternatives to Medical Credit Cards

If a certain procedure or treatment requires you to pay out of pocket, explore one of the following options before signing up for a medical credit card:

• Negotiate a Payment Plan: Ask your medical provider to set up an installment plan with you. Most caregivers and hospitals will work with their patients and allow interest-free payment plans.
• Ask for Charity Care: If you have low income and are being treated at a hospital, ask if you qualify to receive Charity Care, a state-run program that requires hospital staff to provide services for free or at a reduced cost to those who meet eligibility requirements.
• Seek Public Assistance: Do some research on programs that are available in your area (e.g., dental services offered for free at many public health facilities), especially if you’re a veteran or have low income.
• Budget & Save: If you don’t need the procedure just yet, put away some of your income every month until you have enough to cover the cost. And in case you have an urgent, unforeseen expense, your savings can double as an emergency fund.
• Get a 0% Credit Card (Without Deferred Interest): If you have good credit, shop around and compare traditional 0% credit cards that allow you to spread payments over a certain period without incurring finance charges. Make sure the card doesn’t come with a deferred interest policy and use a credit card calculator to determine what monthly payments you’ll need to make in order to be debt-free by the end of your card’s introductory period.
• Look for a Medical Loan or a Payment Plan with a Lower Interest Rate: Lenders such as Prosper and SimpleSelect Patient Finance, among others, offer installment loans — not medical credit cards — designed to affordably cover health care expenses. You can also ask your medical provider about any payment plan services they may offer, such as AccessOne Pay for example. SimpleSelect Patient Finance offers 0% financing for up to 24 months (with no deferred interest feature), but the offer can only be used at specific health care facilities. AccessOne has 0% APR options available, and they claim everyone qualifies. Loans from Prosper Healthcare Lending do not have an interest-free period. You can compare medical loan offers on WalletHub.
• Talk to a Credit Counselor: If you struggle with medical debt, contact a professional to help you see a clear picture of your finances and find room in your budget to cover a procedure you need.  Visiting a reputable credit counselor is an inexpensive (often free) and effective option.
• Pay as You Go: Ask to be billed for each visit instead of up front for all the required visits in your treatment plan. That way, you won’t lose the money if you switch to a different provider or stop treatment halfway.
• Borrow Against Your Home Equity or 401(k): Although we strongly advise against going this route, these may be options for those in the direst situations who need money for absolutely necessary procedures. Homeowners can borrow up to 80 or 90 percent of their home equity and those with a 401(k) plan can borrow as much as 50% of their balance (up to $50,000) and pay it back over a period of up to five years.

Tips for Avoiding Medical Credit Card Mistakes

Medical credit card financing should be a last resort, if even an option to begin with. If you have a medical credit card or are considering signing up for one, follow the tips below and both you and your wallet will hopefully come out healthier in the end.

• Read the Terms Carefully: It’s imperative that you read and understand a card’s terms and conditions, and any disclosures presented to you, prior to signing up. Most medical credit cards claim 0% financing, but the fine print often reveals the dark side of those deals.
• Reconsider the Necessity of the Procedure: Don’t let the momentary attractiveness of a medical credit card talk you into pursuing a procedure you don’t need. If you can’t afford it now without the card and you don’t foresee being able to pay off your entire balance before the promotional period ends, your balance will trigger the deferred interest rate, costing you more for the procedure than it was worth.
• Use a Credit Card Calculator: You need to be sure that you can pay the minimum required every month as well as your full balance by the end of the introductory period for a medical credit card to do you any good. Using a credit card calculator to plan out your payments is therefore extremely important.
• Shop & Compare: You cannot evaluate a medical credit card in a vacuum. You need to compare it to other financing offers, including other medical credit cards, traditional 0% credit cards and whatever additional payment plans are available through your health care provider. Only after comparing all your options can you find the best deal.
• Assert Your Rights: If you experience any problems with your medical credit card, you should submit a complaint to the Consumer Financial Protection Bureau. They won’t be able to intervene with your lender, but the agency will ultimately exercise its regulatory power if it receives enough similar complaints.

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