Medical credit cards can cost you big

Tuesday, August 5th, 2014

The high cost of medical services – dentistry in particular – is apparently gearing up the growth of the medical credit cards market. Today more Americans are using medical credit cards to finance medical procedures.

These cards help consumers to pay for medical services that are not covered by health insurance even though they charge interest rates running from 10% to nearly 30%. And these medical credit cards are great deal for the dentists, doctors, and other medical professionals that offer them. The credit card issuers pay the doctors for the cost of the service.

Unfortunately, most deals provided to consumers are not attractive. Consumers may end up paying for procedures they haven’t received yet (or even never received) and facing retroactive interest charges.

Nearly all credit cards with deferred interest have two catches that can force consumers to pay huge retroactive interest charges. The first catch is that if you have a balance remaining at the end of the interest-free period, you’ll pay interest on the entire amount that was financed from the first day of the loan.

The second catch is that if you pay less or will be late in the repayment process, the no-interest deal will be rescinded retroactively and you will pay interest on the entire amount back to the first day the loan was funded.

But the worst possible situation is when you are charged for the entire cost of the procedure long before the procedure is complete. Thus, you are paying the interest on charges that should appear significantly later.

Consumers should consider all possible payment options before agreeing to take out a medical credit card. Many hospitals and doctors may agree to set up informal monthly payment loans, allowing you to pay over time without a credit agreement. It is also can be preferable to finance a medical procedure on a low-interest non-medical credit card. You can find plenty 0% interest introductory period credit cards issued by major banks.

If you need to finance an uninsured medical procedure you can’t afford, make sure you shop around. Avoid abusive credit agreements and don’t make mistakes with a medical credit card.

Latest Other Card News

Monday, June 6th, 2016
If your wallet is bulging with store loyalty cards, there’s good news for you from Samsung Pay. The most widely accepted mobile digital wallet system in the United States is now ...
Tuesday, April 12th, 2016
Springtime is the season for house hunting, but many people planning to move this year say they’ll rent, not buy, their new digs.
Tuesday, January 5th, 2016
Online banking has revolutionized the way people do business with their banks, and one result is that fewer and fewer folks are actually stopping in to branches to do things like ...
Tuesday, December 8th, 2015
A new credit card from Barclaycard offers cash back rewards, as well as a redemption bonus when cardmembers redeem their rewards.
Monday, June 29th, 2015
Nordstrom agreed to sell its existing U.S. Visa and private label consumer credit card portfolio to TD Bank Group.
Pacific Credit Group Emporium Black Card
Copyright © 2001-2016 BestCreditOffers.com All Rights Reserved.

* The BestCreditOffers.com.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. BestCreditOffers.com.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the BestCreditOffers.com.com website are property of their respective owners.

BestCreditOffers.com makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that BestCreditOffers.com may be compensated by the credit card issuers when the readers apply for a credit card through this site.

BestCreditOffers.com is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. BestCreditOffers.com does not review or list all available financial or credit offers.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.