The CareCredit credit card can be used for cosmetic surgery, dental treatment, eye exams, LASIK, hearing services, weight loss surgery and even veterinary costs, among other services. In 2020, roughly 7 million Americans had medical debt in collections, according to a study by the Journal of the American Medical Association. will earn 3% cash back for health-related spending. For example, if you end up spending heavily at drugstores for medical expenses based on your needs one month, but your spending leans more toward groceries the next billing cycle, your bonus category will automatically adjust and youll continue to earn elevated rewards (until you hit the $500 spending cap each billing cycle). This means if cardholders can't pay the debt in full by the end of that period, they must pay the accrued interest (not just interest on the remaining balance).

Pre-qualified offers are not binding. Only mortgage activity by Credit Karma Mortgage, LLC., dba Credit Karma is licensed by the State of New York. However, since interest accrues from the date of purchase or balance transfer; if you don't pay off the balance in full by the end of the promotional period, that accrued interest will be assessed and added to your balance.". If you have specific questions about the accessibility of this site, or need assistance with using this site, contact us. It lets your provider offer a flexible payment plan without needing to actually manage the payments once you walk out of the office. Thats because it earns 5% cash back in your top eligible spending category each billing cycle, which is automatically adjusted based on your spending that month. The card can be used in Walgreens and Duane Reade stores, online at Walgreens.com and through the Walgreens app only.

Can a Secured Credit Card Help Your Credit? And because drugstores are one of the cards 10 fixed bonus categories, youll earn lucrative rewards when you use your card at those stores. Cardholders should check with their provider to determine the available options. offer, it is higher than what most tiered rewards cards offer for that spending. New account holders can also take advantage of the cards generous sign-up bonus: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back! And if you're adamant about using a credit card, you may as well use a generic one. When evaluating offers, please review the financial institutions Terms and Conditions. Be aware, though, that the indicative annual percentage rate (APR) on these cards is much higher, at 26.99%. As one of the largest providers of private-label credit cards in the U.S., it has agreements with a broad range of health care providers that will accept its card as payment. is accepted by wellness and health care providers enrolled in the program, which includes over 225,000 providers across the country. For example, the U.S. Bank Visa Platinum Card features a lengthy 20-month interest-free window. Walgreens also offers the myWalgreens card, which comes with the same benefits as the Mastercard version save for cash back on non-Walgreens spending. Though many of these firms stopped participating in the program, revolving credit lines for use to cover health care costs are still available to consumers. And if you find yourself in a medical emergency that necessitates the use of the CareCredit Card, its important to come up with a plan to pay the debt off within the promotional window. The card has a low 9.49%to16.49% variable APR. If you have an unexpected medical expense that warrants financing, consider opting for a 0% APR card that comes with a long interest-free period. The $0-annual-fee Wells Fargo Reflect Card for example, comes with a potential 21-month 0% APR period for both purchases and balance transfers: It features a 0% intro APR on Purchases for up to 21 months and 0% intro APR on Balance Transfers up to 21 months from account opening on qualifying balance transfers, and then the ongoing APR of 14.49%-26.49% Variable APR Note that there is a balance transfer fee of $5 or 3% (whichever is greater) for balances made in the first 120 days of account holding, and then after that, a 5% fee for each transfer amount (with a minimum of $5). features a lengthy 20-month interest-free window. 5% cash back on up to $500 spent in your highest spending category per billing cycle (from a list of eligible options, one of which is drugstores) and 1% back on all other category spending. "Healthcare Financing for You and Your Family. She has been in the accounting, audit, and tax profession for more than 13 years, working with individuals and a variety of companies in the health care, banking, and accounting industries. There are, however, late fees if you miss a payment. CareCredit. The AARP Essential Rewards Mastercard from Barclays offers valuable medical-related rewards that can be beneficial for AARP members and nonmembers, too. Learn more with our review of the CareCredit card. You don't pay any interest during that time, but if you haven't paid off the entire balance by the end of the term, you're charged interest at a steep rate (currently 26.99%) retroactively from the purchase-of-service dateon your entire original balance, in other words. This category includes merchants and services such as hospitals, ambulances, doctors offices, personal care facilities, dental care, veterinary services and more. If CareCredit doesn't sound appealing, there are alternatives to help pay for health care. The card can also be used for elective medical procedures that are not covered by traditional insurance plans. Many or all of the products featured here are from our partners who compensate us. But the. Rotating bonus category cards usually require some work to keep track of. ", CareCredit. Of course, consumers must remember that the financing behind these credit cards is provided by for-profit companies that are in business to make money. No. Youll have a minimum monthly bill and you may need to pay interest for the expenses, depending on the terms and how quickly you pay down the medical debt. This information may be different than what you see when you visit a financial institution, service provider or specific products site. Read more about Select on, Platinum Mastercard from First Tech Federal Credit Union, Titanium Rewards Visa Signature Card from Andrews Federal Credit Union, If you're relying on your credit card in times of record-high inflation, make sure you do this, The year is half over be sure to hit these financial milestones before the end of 2022, American Express updates the Blue Cash Everyday Card: More cash back at gas stations and other perks. "Understanding Promotional Financing. But it's important to remember that CareCredit (and similar health care credit card companies) are in business to make a profit. But if you have the opportunity to choose, here are three medical credit cards to consider. Additionally, the Mastercard earns rewards for non-Walgreens health and wellness purchases. Cardholders earn 2% cash back for medical expenses, which includes a wide and inclusive breadth of services and products such as dentists, orthodontists, osteopathic physicians, chiropractors, optometrists, opticians, optical goods and eyeglasses, hospitals, medical and dental laboratories, hearing aids, ambulance services, orthopedic goods, prosthetic devices, nursing and personal care facilities, health practitioners and more. A credit score is a number from 300850 that depicts a consumer's creditworthiness. Branded medical credit cards are essentially an unsecured line of credit offered by some health care providers. If possible, it could be helpful to come up with a plan to pay for a medical procedure before entering the doctors office so you have a chance to consider your options. The card features interest-free periods of six, 12, 18 and 24 months, on purchases of $200 or more. Additionally, the card earns an even higher rate of 3% cash back for drugstore purchases, excluding Target and Walmart. ", Consumer Financial Protection Bureau. This information may be different than what you see when you visit a financial institution, service provider or specific products site. Although this isn't as high as what some. OK92033): Licenses, NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer AccessLicenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812. Such cards come with waived interest offers, which means you won't be charged any interest during the promotional period, after which youll only accrue interest on any remaining balance left over. 3% back on non-Walgreens groceries and health and wellness purchases. If youre approved for the card, the credit card issuer pays your doctor upfront and works with you to pay off the loan over time. These cards can offer a convenient way to pay your medical bills but at a significant cost. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you. Doing so could end up costing thousands of dollars in interest and potentially send you into debt. This means that if you were to purchase over-the-counter medication at CVS or Walgreens, for example, you would earn the cards bonus cash back rate. The card features interest-free periods of six, 12, 18 and 24 months, on purchases of $200 or more. In addition to rewards for travel and restaurant purchases, the Chase Freedom Unlimited earns a solid cash back rate for spending at drugstores which can make it a go-to card for pharmacy-related spending done at such stores. "CFPB Orders GE CareCredit to Refund $34.1 Million for Deceptive Health-Care Credit Card Enrollment. With a regular variable APR of 26.99%, that could be a hefty bill.

5 THINGS TO KNOW:AARP Essential Rewards Mastercard from Barclays. $25 in Walgreens Cash rewards when you make your first purchase within the first 45 days. Rather, it's a way for doctors to allow patients to finance elective procedures that are not covered by insurance, like cosmetic surgery. Our partners cannot pay us to guarantee favorable reviews of their products or services. Like all credit cards, health care-oriented credit cards should be used in a cautious and responsible manner because failure to abide by the terms of the account agreement will be reported to credit bureaus and hurt your credit score. CareCredit cardholders can go to the CareCredit website and enter a zip codeto find local providers that take the card. So if you fail to pay the amount you owe before the promotional period ends, youll be charged interest on the original amount borrowed, not just on the remaining balance which can be very expensive. Doing so could end up costing thousands of dollars in interest and potentially send you into debt. You can also apply in person at more than 250,000 health care providers and select retail locations that accept CareCredit. Best Balance Transfer and 0% APR Credit Cards, NerdWallets Best Credit Card Tips for July 2022, Get more smart money moves straight to your inbox. ", Healthcare.gov. "Using a Flexible Spending Account (FSA).".

Rather, it's intended to pay for medical expenses at various hospitals, veterinary clinics, dental centers, and private medical practice firms, along with health care-related retailers and pharmacies. While these cards dont earn rewards specifically for medical expenses, they reward holders regardless of what you buy whether it's groceries or a medical-related purchase. Box 30963, Oakland, CA 94604, Image: Man sitting at desk, holding a credit card, Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on Reddit (Opens in new window), Image: Couple sitting on couch at home, looking up how to get help with medical bills, Image: Older woman considers papers at her table with her laptop in front of her, Image: Woman sitting at her desk at work, reading a CareCredit review on her phone, Image: Man using credit card reader at counter in motorcycle shop. Thats because it earns 5% cash back in your top eligible spending category each billing cycle, which is automatically adjusted based on your spending that month. There are no additional interest charges as long as they spend at least $200 and pay the full bill within the agreed-upon time period. If you prefer a credit card that comes with rewards, the Titanium Rewards Visa Signature Card from Andrews Federal Credit Union has special intro financing and a strong rewards program all at no annual fee. Purchases made at pharmacies in grocery stores, wholesale stores or discount stores aren't eligible to earn this cash back rate for drugstore spending. Healthcare Financing for You and Your Family. Before agreeing to sign up for a new credit card, check to see if a traditional credit card might offer a longer 0% interest period or if a personal loan might be a better fit for your needs. Sign up and well send you Nerdy articles about the money topics that matter most to you along with other ways to help you get more from your money. Unless you have first exhausted other options of paying your medical bill, such as applying for financial aid, and you have a realistic plan to pay off the debt within the medical credit card's promotional 0% APR period, there are usually better ways to resolve what is owed. If youre a rewards maximizer who is able to keep track of rotating bonus categories, consider the, . For other potential alternatives, visit NerdWallet's roundup of best credit card offers. Here is a list of our partners. If you're not careful, youcan incur significant expenses from the associated fees. He received his double major Bachelor of Arts in professional and creative writing from Carnegie Mellon University and his Master of Journalism at Temple University. Plus, the card has a unique benefit: If you end up carrying a balance on the card, youll be able to pay it down at a fixed interest rate within a set repayment period, based on what you qualify for. You can learn more about the standards we follow in producing accurate, unbiased content in our, How the Goodyear Credit Card Works: Benefits and Rewards, How the Home Depot Credit Card Works: Benefits and Rewards, Credit Cards 101: How to Use Them to Make Purchases. Note that a purchase or services. Read more. This may make it easier for people with limited or poor credit history to be approved for a CareCredit card. Note that purchases made at a grocery, warehouse and discount store pharmacies aren't eligible to earn this cash back rate. The card's financing terms tend to be different from those of a regular credit card. Compensation may factor into how and where products appear on our platform (and in what order). Balance transfers do incur a 1.50% fee per transfer, with a $50 minimum. Synchrony doesn't specify what credit score is needed to qualify for CareCredit, and it doesn't tell customers which credit bureau it uses to get credit reports. AccessOne stands out in accepting all applicants, regardless of their credit. However, the cards promotional offer is a. offer, which means that interest isn't waived, but rather, put off until later. AARP Essential Rewards Mastercard from Barclays. MORE: 4 ways to keep medical debt off your credit cards, About the author: Funto Omojola is a credit cards writer at NerdWallet. Just like other types of credit, medical credit cards typically come with a promotional introductory interest rate period for the first six to 18 months. James McWhinney is a long-tenured Investopedia contributor and an expert on personal finance and investing. An applicants credit score will determine which card they are approved for. iPhone is a trademark of Apple Inc., registered in the U.S. and other countries. These promo periods often extend for 18 or 24 months, which are as long as CareCredit's. This low APR offer can give you breathing room by breaking a large medical bill into smaller pieces over the repayment period. But while these healthcare credit cards appear to offer special financing, they aren't the best way to fund your well-being. The card is currently accepted by over 250,000 health care providers across the United States. makes it easier for cardholders to stay on top of bonus categories. A low-interest credit card you may want to consider is the no-annual-fee Platinum Mastercard from First Tech Federal Credit Union, which provides cardholders with a 0% intro APR on balance transfers for the first 12 billing cycles with no balance transfer fee. The biggest risk with medical credit cards is the promotional 0% APR. ,that earn 2% cash back on all purchases. Consumers who use the CareCredit card are eligible to participate in short-term financing offers that enable them to make payments over six, 12, 18, or 24 months. The minimum purchase on these cards is $200, and the maximum credit limit for those with a good credit score is $25,000.

This date may not reflect recent changes in individual terms. Image: A smiling woman seated on a sofa holds her Milestone Mastercard Cashback Rewards card while using her laptop. offers valuable medical-related rewards that can be beneficial for AARP members and nonmembers, too. Next time you have a big medical bill to pay, your healthcare provider may invite you to sign up for a medical credit card as a payment plan to cover the costs of the services. However, the firm's "promotional financing options" (the ones with no interest or a relatively low rate) are not available through every provider. New account holders can also take advantage of the cards generous sign-up bonus: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back! unless absolutely necessary. We also reference original research from other reputable publishers where appropriate. Akin to private label retail store credit cards, these products generally have limited usage options and higher long-term interest rates compared with general use credit cards. Be warned, though, that CareCredit cards can be expensive if you aren't able to make your repayments on time. Extended time periods up to 60 months for minimum purchase amounts of $2,500are also available, with interest rates as low as 17.9%. Pre-qualified offers are not binding.

After the intro period, there's a competitive 7.74% to 18.00% variable APR. As a result, the firm created a CareCredit Certification with its providers "in an effort to ensure that every CareCredit card applicant is given a clear, easy-to-understand explanation of financing options available.". However, this does not influence our evaluations. Our partners compensate us. Product name, logo, brands, and other trademarks featured or referred to within Credit Karma are the property of their respective trademark holders. CareCredit is a credit card specifically designed for health and wellness needs. This card offers special financing for out-of-pocket medical expenses that aren't otherwise covered by insurance. The. ", CareCredit. Paying medical bills can be a financial burden and a significant challenge. Credit Karma, Inc. and Credit Karma Offers, Inc. are not registered by the NYS Department of Financial Services. You can't use it anywhere or for anything. "CareCredit vs General Purpose Credit Cards: How CareCredit is Different?

It too earns 3% cash back on drugstore purchases in addition to earning rewards for dining and travel-related spending. Credit Karma is a registered trademark of Credit Karma, LLC. Credit Karma is committed to ensuring digital accessibility for people with disabilities. The minimum payments may well be lower. With over 25 years of experience as a full-time communications professional, James writes about finance, food, and travel for a variety of publications and websites. You can split the payment by paying for part of your services or treatment with cash and the CareCredit card. NerdWallet's ratings are determined by our editorial team. This means that if you were to purchase over-the-counter medication at CVS or Walgreens, for example, you would earn the cards bonus cash back rate. This option won't affect your credit score. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. Insurance related services offered through Credit Karma Insurance Services, LLC, which does business in some states as Karma Insurance Services, LLC. Additional medical-related spending that would earn the cards 3% back includes services and products like hearing aids, medical and dental laboratories, health practitioners, nursing and personal care facilities, optometrists and ophthalmologists, prosthetic devices and more. CareCredit advises cardholdersthat "with this type of promo financing, which may be advertised as no interest if paid within 12 months, or however long the agreed-to promotional period lasts, your card issuer will waive the interest you accrue if you pay your balance in full by the end of the promotional period. Note that some pharmacy items purchased at Walgreens stores in Arkansas, New Jersey or New York may not be eligible for cash rewards. Funto Omojola is a credit cards writer at NerdWallet. It still does a credit check, but it says it wont report your payment activity to credit bureaus. 20072022 Credit Karma, LLC. Cardmembers can earn 3X points on gas and grocery purchases and 1.5X points on all other purchases. Plus, the card earns 1.5% back on spending outside the bonus category.

Health care credit cards provide a way to make medical expenses more manageable. The money we make helps us give you access to free credit scores and reports and helps us create our other great tools and educational materials. , drugstore spending includes purchases made at pharmacies in grocery stores, superstores, wholesale and warehouse clubs as long as the purchases MCC is "drug store" or "pharmacy. Many large practices and facilities have repayment plans that don't charge interest or fees as long as you pay regularly. A health insurance deductible is a specific amount you pay before your insurance plan benefits begin. Auto, homeowners, and renters insurance services offered through Karma Insurance Services, LLC (CA resident license #0172748). High credit limits, combined with the ease with which CareCredit cards can be obtained, means that they can be a good way for people with a poor credit history to pay for medical bills. App Store is a service mark of Apple Inc. FULL REVIEW:Upgrade Triple Cash Rewards Visa. NerdWallet strives to keep its information accurate and up to date. But like other credit cards, you need to consider any promotional 0% interest period, the cards ongoing interest rate and minimum payment requirements to figure out if a medical credit card is right for you.