Key Takeaways

Using CareCredit or other medical financing options can make healthcare more affordable by allowing you to pay over time. It’s important to know all repayment terms before you sign on the dotted line.
Interest rates, APR in particular, are key drivers of how expensive borrowing will be for you. Shopping around and reading the fine print can save you painful sticker shock down the road.
No interest” and deferred interest promotions usually have a lot of fine print—failing to pay on time or in full can lead to hefty interest charges retroactively applied to your account.
Hidden fees, late payment penalties, and other costs can accumulate fast. Never just ask what your monthly payment will be — always inquire about the total cost!
Take time to raise your credit score first! Taking these steps can help you earn more favorable terms and lower interest rates, which can make medical financing a more affordable long-term solution.
Consider other options with us! Negotiating a payment plan with your provider, using Health Savings Accounts, or finding financial assistance are usually cheaper options than medical credit cards or loans.

CareCredit and other medical financing lets you finance health care expenses with dedicated credit lines or loans. Remember that interest rates will greatly affect the total cost of whatever you’re purchasing. Interest rates on these different plans can vary widely, and being aware of the differences can keep you from incurring unexpected costs.

As we all know, health care costs are increasing dramatically in the United States. This has led countless families to rely on financing to pay for surprise or large expenses. Lenders such as CareCredit offer both short-term and long-term payment plans.

Note though, that rates and terms will vary based on your credit and the provider. Choosing the best plan allows individuals to receive care without making steep upfront costs. The following sections outline common bill items and how to monitor charges.

They’ll explain what you should be asking about interest before enrolling.

What Is Medical Financing?

Medical financing can prevent people from having to delay or forgo care. It helps when your out-of-pocket costs are too high to pay in full. It allows individuals to make small payments over a greater period.

It typically has much more flexible repayment terms and even 0% interest in some cases when paid in full within a specified period. This takes a lot of the bite out of large, surprise bills—not just ER trips, but planned surgeries or dental procedures.

Medical financing options, such as CareCredit or other medical loans, are intended for medical expenses. They’re unique especially in contrast to traditional credit cards. Most lenders provide a lower or no interest rate for an introductory period.

By comparison, standard credit cards often carry much higher APRs, with an average of 22.75% as of late 2023. Popular options for medical financing include dedicated medical credit cards, medical installment loans, and lines of credit.

These alternatives usually come with incentives for medical bills. Pay no interest if paid in full in as little as 6 to 18 months! That’s in contrast to traditional credit cards, which often charge interest from day one.

With medical financing, it can help make those treatments possible. It enables people to seek out elective surgeries or complex, restorative dental work that they would otherwise delay.

When people can afford to make smaller, predictable payments, they—surprisingly often—stop postponing necessary treatments.

Paying for Health Over Time

Paying over time makes it easier for people to plan around larger expenses. Services that may offer financing include dental and vision care, cosmetic treatments, fertility treatments, veterinary care, and surgeries and hospital stays.

It’s a good idea to look for repayment terms such as interest rates and length of repayment. Paying off the balance sooner reduces interest and saves money in the long run.

More Than Just a Credit Card

Medical credit cards are used differently than regular credit cards. They typically come equipped with deferred interest deals specifically designed for healthcare.

These offers often include reduced interest for a predetermined period. That’s what makes them especially useful for planned procedures. If you do miss the payment period, accrued interest can accumulate quickly.

Who Offers These Plans?

Medical financing is offered through specialty lenders such as CareCredit, Wells Fargo Health Advantage, and many credit unions. Here’s a comparison of common providers:

Provider	Interest Rate Range	Promo Period	Fees
CareCredit	0%–26.99%	6–24 months	Late fees
Wells Fargo	0%–26.99%	6–18 months	Late fees
Credit Union Loans	5%–18%	Varies	Few fees

Things to consider are the APR, promotional time frames, and other fees involved. Often, clinics or hospitals will assist patients in applying onsite.

When It Might Be an Option

Medical financing is most useful when bills are expensive or insurance denies a claim. It’s commonly used for things such as dental implants, fertility treatments, or even veterinary care for pets.

Individuals with unexpected medical needs or those looking to segment a hefty invoice would be ideal candidates. Before you leap into a medical payment plan, be sure that it makes sense with your finances and long-term financial goals.

Understanding Interest Rates Deeply

Interest rates determine what it actually costs to use CareCredit or any other medical financing in the United States. Whether paying for dental work, a surgical procedure, or ongoing therapy, the interest rate attached to your loan or line of credit decides how much you will ultimately pay beyond the original bill.

These primary rates, determined by lenders, represent risk, market conditions, and the details of the financing plan you select. Learning about interest would be more than just taking out the calculator. It’s really all about preparing yourself to make the best choice possible and preventing any unpleasant surprises once your treatment is completed!

When it comes to medical financing, the language can be misleading. Here are a few you will see most often:

APR (Annual Percentage Rate)
Promotional Rate
Deferred Interest
Fixed Rate
Variable Rate
Minimum Payment
Balance Transfer Fee
Origination Fee

Each of these terms play a part in dictating your payment schedule. A low interest rate can bring an expensive procedure within reach. A poorly understood term, or the wrong high rate, can turn a small charge into a decades-long penalty.

Shopping around, and being aware of what’s out there before you apply is essential to preventing your overall costs from skyrocketing.

1. APR: Your Annual Borrowing Cost

As a general rule, APR is the most useful yardstick to use when comparing the costs of medical financing options. It includes the interest plus any other fees that are needed, reflecting your true annual cost to borrow.

If you borrow $5,000 for an operation, a 10% APR means you’ll pay around $500 per year in interest. That’s assuming you NEVER pay down the balance! With a 25% APR, that rises to $1,250. The APR will be higher for riskier applicants or unsecured loans than for those with great credit.

Promotional APR offers are super valuable! Take 0% interest for six to 18 months—just make sure you’re confident you’ll have the balance paid off before that period ends. They provide an introductory interest-free period, after which the interest rate reverts to the normal APR.

Lenders determine your APR according to your credit score, credit history, and the amount of your loan.

2. Fixed vs. Variable: What’s the Deal?

A fixed interest rate means your rate will not change over the life of your loan. A variable rate goes up and down over time, moving in tandem with a benchmark interest rate such as the prime rate.

Fixed rates provide consistent, reliable payments over time, allowing you to budget even better. Variable rates can be lower at the beginning, but they have the potential to increase, making your monthly payments more expensive.

Fixed rates work best when:

You want steady payments each month
You have a tight budget
The promotional period is long

Variable rates are worth it when:

Market rates are dropping
You plan to pay off your loan quickly
You are comfortable with possible payment changes

When interest rates in the overall market increase, variable rates usually do too. This can surprise borrowers if they’re under the impression their payments will remain consistent.

3. How Lenders Calculate Your Rate

What lenders consider when determining your rate Lenders consider a number of factors when determining your interest rate. Credit score is the most known factor, but lenders consider your income, loan amount and debt-to-income ratio.

They look at your history of making payments and your credit utilization, or how much of your available credit you’re using. Common financial metrics include:

Credit score
Past payment history
Total monthly debt
Income level
Size and length of the loan

With elective procedures, lenders can view a higher risk and increase the rate. For care that is medically necessary—with the caveat that when insurance is a partial payer, providers are willing to accept lower rates.

4. Your Credit Score’s Big Impact

Your credit score determines whether or not you are approved and the interest rate you’ll receive. What lenders are looking for is a consistent pattern of on-time payments, a low debt-to-income ratio.

Tips to help your score:

Pay all bills on time
Lower your credit card balances
Check your credit report for mistakes

Score ranges and their effects:

720+: Best rates, easiest approval
680–719: Good rates, easy approval
640–679: Higher rates, possible approval
Below 640: Highest rates or possible denial

Keeping good credit will lead to more options and lower rates when you need something in the future.

5. The “No Interest” Promotional Puzzle

A “no interest” promotion means you incur no interest as long as you pay off your purchase before the end of the specified time period. Otherwise, you might end up on the hook for the entire amount of interest starting from day one.

These promotional offers are typical with CareCredit and similar plans.

Key things to know:

The promotional agreement is a great deal only if you pay off the full balance before the promotional period expires.
Even under favorable terms, minimum payments can take decades to pay off—if they ever pay off the balance at all.
If you don’t pay by the deadline, you owe interest on the entire original amount.

Questions to ask:

What is the length of the promo period?
What is the regular APR after the promo?
Do I have to pay back interest if I miss a payment?
Are there any fees hidden in the fine print?

6. Deferred Interest: Friend or Foe?

Deferred interest plans push interest charges to a future date if you pay off your balance in full by that date. If they don’t, all the accrued interest for the promo period gets lumped on at once.

Risks:

Big interest bills if you miss the payoff date.
Minimum payments may not be enough.

Tips:

Set a payoff plan with higher-than-minimum payments.
Mark the end date on your calendar.
Read the offer’s fine print.

Even paying off your balance by the promotional period’s end can lead to interest that negates any benefit.

7. Unmasking the True Cost of Loans

Interest is just one cost of borrowing. Look for other fees, like:

Application or origination fees
Late payment fees
Balance transfer fees

Option	APR	Fees	Total Cost (12 mo, $5,000)
CareCredit 0% (paid)	0%	$0	$5,000
CareCredit 0% (unpaid)	26.99%	$0	$5,675 (if not paid off)
Personal Loan	10%	$100	$5,600

Always check the full cost, not just the rate.

8. How Market Shifts Affect Your Loan

Interest rates are constantly in flux with the overall economy. Whenever the Federal Reserve raises rates, lenders tend to do the same. Inflation, employment information, and consumer expenditure are all factors.

Watch these signs:

Fed rate hikes or cuts
Inflation numbers
Unemployment rates
Consumer spending trends

Being informed allows you to time your financing of new care—or a refinancing, if interest rates fall—to take advantage of favorable market conditions.

How Lenders View Your Application

What lenders are looking for Medical financing lenders carefully scrutinize every application before approving CareCredit or similar products. First and foremost, they need to know that you’ll be able to repay what you’re borrowing. Generally speaking, lenders want to know four things— your credit score, your income, your current debts and the type of procedure you need.

While each lender will have their own unique list of rules and checks, as it relates to your application, the fundamentals remain consistent.

Your Credit History Speaks Volumes

When you have a solid credit history, lenders are more likely to offer you lower interest rates and approve your application. Your FICO score is the most widely used credit score in the US—generally a score of 690 or higher is considered good. Negative marks, such as missed payments or collections, can affect your options available to you or result in a higher rate.

If your credit is poor, try these steps:

Pay down small debts first
Dispute errors on your report
Settle old accounts if possible
Use credit only for what you can pay back

Re-evaluate your credit history. Consider getting a credit report review before you apply. Correcting even minor errors will improve your odds.

Income and Existing Debt Factors

Your ability to repay is key. Lenders are looking for evidence that you earn sufficient income to take on additional payments. They’ll look at your debt-to-income ratio. If you have a lot of existing debt, getting approval will be more difficult.

To look better:

Gather pay stubs and tax returns
Pay off some credit cards
Avoid new debts before applying

Your employment status matters to lenders. Lenders will take your employment status into account. A stable employment record is a plus.

Procedure Type Can Influence Terms

The type of project you’re seeking funding for is an important consideration. As opposed to elective treatments—think cosmetic surgery—that can be more heavily regulated than urgent care. Typical financed procedures range from dental and ocular surgery to reproductive interventions and aesthetic alterations.

As with anything else, costs vary depending on your geographic location or the provider you see.

Comparing Lender Approval Criteria

Lender Type	Credit Score	Income Proof	Debt-to-Income	Age Req.	Notes
Major Banks	690+	Required	<40%	18+	Stricter
Credit Unions	650+	Often Needed	<45%	18+	More flexible
Specialty Lenders	620+	Always	<50%	21+	Lenient

Understand lender rules before you apply. Look out for red flags such as missing information, inconsistencies, or large liabilities. If you have unstable employment or a high debt load, lenders are going to view that situation as more risky.

Decoding Promotional Financing Offers

Promotional financing in medical credit—like CareCredit—provides a quick, easy way for consumers to pay for large health expenditures over time. On the surface, promotional financing offers may seem straightforward, but the true value is in the fine print. While most promotional plans promise zero or low interest, they do so under stringent conditions and time limits.

This “great deal” doesn’t pay off unless you abide by the full terms and conditions, right to the small print. Most common promotional terms to watch for include:

“No interest if paid in full”
“Deferred interest”
“Reduced APR for a set period”
“Fixed monthly payments required”
“Retroactive interest charges”

Consider Timing

Timing is everything. To put it simply, if you pay off your entire balance before the promotional period ends, you don’t pay any interest. Otherwise, you may be subject to retroactive interest starting from the original purchase date.

It’s important to always look for the promotional end date and make a repayment plan accordingly.

“Interest-Free” If Paid On Time

In order to avoid accruing interest, you’ll need to pay at least the minimum amount due every month. Another important thing to note—pay off your purchase before the promo period ends! Not paying on time, sometimes even just once, may void the offer.

Best practices include:

Set payment reminders
Pay more than the minimum
Keep a close eye on your end date.

Interest-free promos can save money if you stick to the plan, but missing deadlines can mean paying all the interest retroactively.

The Hidden Sting of Deferred Interest

Deferred interest offers are those in which you pay no interest unless you fail to repay the entire financed amount before the promotional period ends. This can quickly amount to significant sums and surprise borrowers.

To dodge this trap:

Know your promo end date
Pay more than the minimum
Ensure that you are on track month to month.

Make one wrong calculation and you might be on the hook for thousands of dollars more than you anticipated.

Always Read the Fine Print

Always read the fine print. Each offer has fine print you must read. Read the contract for:

Full payment terms
Penalties for late payments
Hidden fees
Interest rates following promotional financing periods.

Omitting these details could result in unexpected fees or charges.

When Promotions Are Truly Beneficial

Promos do benefit you, provided you know how you’ll pay it off and have the funds to support your payoff plan. A good promo should:

Fit your budget and timeline
Offer a real cost break
Align with your capacity to make payments without fail.

A promo that matches your usage needs is attractive, but only if you know for certain that you can meet those requirements.

Pitfalls of Misunderstanding Terms

Consumers frequently misunderstand “no interest” to mean “no payments” or fail to understand how retroactive interest applies. Tricky terms include:

“Deferred interest”
“Minimum monthly payments”
“Promotional APR”

If you don’t understand something, ask questions before you sign. We know that credit card debt has become increasingly burdensome.

The Real Cost: Beyond Interest

CareCredit and other forms of medical financing provide millions of Americans with access to healthcare by allowing them to manage surprise expenses. The real cost is usually much more than the interest rate they advertise. While monthly payments may seem manageable and convenient in the moment, the true cost compounds in ways difficult to foresee.

In this way, fees and penalties can raise the debt well beyond what was originally owed. Medical debt has reached a record $195 billion across the country. With 1 in 10 adults currently in debt due to care, understanding the full picture of expenditures is absolutely essential.

Hidden costs can easily come and catch you off guard. Here are factors that bump up the real price:

Application fees and origination charges
Late payment fees (often up to $41)
Deferred interest that suddenly applies if you make one late payment
Balance transfer fees if you’re transferring debt to a zero-interest card
Prepayment or early payoff fees

Consider budgeting for each element of financing. Most individuals who incur debt for care —often over $10,000— do so by necessity, rather than by choice. These bills, unfortunately, land with a crushing impact, as 23% of adults report experiencing large, unexpected medical bills in the last year.

Having an understanding of the full cost will prevent sticker shock down the line and keep you on your toes.

Spotting Sneaky Hidden Fees

Hidden fees can be tricky. Here are some charges that aren’t obvious to consumers right away. Common hidden fees include:

Account setup or maintenance fees
Annual fees
Paper statement fees

Inquire about these prior to agreeing. Some fees have the potential to be waived or lowered on lender’s discretion, so it’s worth asking. Transparent, upfront language allows you to budget accordingly and maintain your independence.

Application and Origination Charges

These one-time fees pay for the lender’s expenses in originating a loan. That’s because they can add to your total debt quickly.

You can:

Shop lenders for lower fees
Ask for fees to be waived
Read the fine print to spot extra charges

The Price of Late Payments

Missing a payment triggers several consequences:

Late fees up to $41
Extra interest charges
Penalty interest rates
Collateral consequences—impact on credit score

Create reminders with enough time to due dates to prevent these damaging blows.

Total Repayment vs. Initial Cost

Upfront medical bills increase substantially once added collection fees and interest are considered. For example:

Upfront Bill	Interest & Fees	Total Repayment
$1,500	$400	$1,900
$5,000	$1,300	$6,300

Over time, the real cost can be several times greater than your original balance.

Smart Ways to Manage Medical Debt

Managing medical debt requires preparation, open communication, and strategic decision-making. Millions of Americans face overwhelming medical debt, and defaulting on that debt can result in debilitating anxiety or even declare you bankrupt.

When you are well informed about your insurance coverage including co-pays, deductibles, and annual maximums, you can better budget for your medical debt. Here are some smart ways to manage these bills and steer clear of additional interest:

Talk to your provider about payment options.
Only borrow what you truly need.
Pay more than the minimum if you can.
Look into refinancing options as your situation changes.
Set up an emergency health fund.

Talk to Your Provider First

It’s just commonsense to inquire about costs before you receive healthcare services. Start with questions like: “Can you give me a full breakdown of my bill?”, “Are there discounts for early payment?”, “Do you offer payment plans or financial help programs?

Many providers will even extend flexible and interest-free payments over six or twelve months. You may even qualify for a 10-20% discount if you pay in full at the time of service or demonstrate financial hardship.

Borrow Only What You Must

Just try to account for the necessary expenses only. To determine how much you need, total your out-of-pocket expenses, deduct your savings, and review your insurance plan.

Don’t borrow more than you need to, because extra borrowing only delays paying interest and increases the chance of incurring late fees. Never agree to pay more than you know you can afford to pay back on a monthly basis.

Pay More Than the Minimum

Paying more than the minimum monthly reduces the interest accrued. Try these strategies:

Round up your monthly payment.
Make bi-weekly payments.
Allocate tax refunds or bonuses.

This saves you on interest and helps you get out of debt sooner.

Consider Future Refinancing Options

If rates drop significantly or your credit score is much better, refinancing may offer you a way to lower your monthly payments. Consider your credit score, current interest rates, and possible fees.

Keep an eye on the market, but keep your long-term financial objectives in mind before taking action.

Build an Emergency Health Fund

Having a little health fund can save you from going into debt for future bills. Begin with a reasonable monthly figure, establish a dedicated savings account, and contribute lump sums such as tax returns.

This savings fund provides financial security and reduces the need for future debt.

Is Medical Financing Your Best Bet?

When met with sudden large medical expenses, millions of Americans use financing products such as CareCredit or medical loans. With prices increasing and surprise bills everywhere, it makes sense to consider the whole picture before enrolling in one. Medical financing can be a good option to cover unexpected bills, but it’s not the best option for everyone.

Here are a few factors to consider as you explore your options:

What is my current debt load?
How steady is my income?
What’s my credit score?
Can I handle the monthly payments?
We consider if there are other ways available to pay, such as personal savings or assistance programs.

Striking a balance between delivering speedy treatment, while still keeping costs in check is critical. In some cases, care is not able to wait—such as in the case of a broken bone or emergency surgery. The cost of high-interest loans can add up to paying much more in the long run.

Short term — You are able to receive the care you require. Over time, you may be looking at years of payments and hundreds of dollars in additional fees.

Weighing Urgency Against Long-Term Cost

Urgent care can’t wait, but pause to ask:

Can I shop around for lower-cost providers?
What’s the maximum interest rate you can charge if I’m unable to pay it off quickly?

While quick care is often critical, accumulating large debt may negatively impact your financial health for years. Weigh the urgency of need against cost of taking on more long-term debt.

Can Your Budget Handle Payments?

Before you sign up, check your budget:

Rent or mortgage
Food and utilities
Existing loans or credit card debt
Savings for emergencies

Watch out—if you fail to keep up with payments, interest can accrue. Watch out for unexpected expenses—such as return trips or prescriptions—that might take your limited budget to the breaking point. Better to be honest now than in a year when you’re deep in financial trouble.

Potential Impact on Credit Health

Medical debt can drag down your credit score, increasing the cost of borrowing—or limiting your access to credit in the future. Protect your credit by:

Paying on time
Keeping debt low
Watching your credit report for errors

Accumulating long-term debt makes future loans more expensive. Monitor your credit closely and respond immediately if an issue occurs!

When It’s a Necessary Lifeline

Sometimes, financing is the only option to obtain necessary care. It’s key when:

There’s no other way to pay
The care is urgent or life-saving
Insurance doesn’t cover the needed service

If you do need to borrow, seek out zero-interest medical financing plans or assistance from the hospital itself. Don’t wait until you have fallen behind to seek assistance and advice.

Assessing Your Personal Risk Tolerance

Everyone feels different about debt. Think about:

Your comfort with risk
How much debt you already have
Your age, job, and health outlook

If you know that debt will be a huge source of stress for you, consider alternative payment options or seek assistance from family members. Choose what aligns with your values and risk tolerance.

Exploring Alternative Payment Routes

Navigating alternative routes to paying for medical care has become the new normal for many people. The price tag is enough to catch even the most seasoned planner off guard. Alternative payment routes provide greater options outside of CareCredit or standard credit cards.

These routes provide solutions that can help turn large, one-time bills, such as for installation, into smaller, monthly payments. Many of these alternatives offer 0% financing if you pay them back within a certain timeframe. Some offer fixed multi-year contracts at reduced rates for more expensive services.

Reading the fine print on each option’s terms is important. Be alert to undisclosed charges or exorbitant penalties in case of a delayed payment. It’s just common sense to seek out providers who will take the kind of payment you’re looking to offer. Here are a few non-traditional financing ideas:

Short-term 0% financing plans
Long-term loans with reduced APR
Balance transfer credit cards
Crowdfunding platforms (like GoFundMe)
Medical bill negotiation services
Employer-based wellness loans

Personal Loans: Banks vs. Credit Unions

Personal loans from banks or credit unions can help cover medical expenses. Banks might have quicker approval, but usually can’t provide you low rates. Credit unions tend to have lower rates and more favorable terms, if you’re a member.

Here’s a simple table:

Lender	Typical APR Range	Loan Terms (Months)
Big Banks	8% – 20%	12 – 60
Credit Unions	6% – 15%	12 – 60

Joining a credit union might be the best financial decision you ever make, with their significantly lower average rates. Note—shop around with different lenders—interest rates and terms are subject to change at any time.

Leveraging Existing Low-Rate Credit

Many people just put medical expenses on an existing low-rate credit card. This might be okay if you are absolutely confident you can pay it off in a short period of time. Strategies include:

Use cards with 0% intro APRs
Transfer balances to lower-rate cards
Ask for a credit line increase
Set up alerts to avoid late fees

Moving a balance to a lower-rate card usually saves money, but look for a low transfer fee and/or long promo period. So as always, read the fine print.

Health Savings Accounts (HSAs) Power

Health Savings Accounts (HSAs) allow you to set aside money for healthcare expenses tax-free. Benefits include:

Tax-free contributions and withdrawals for qualified expenses
Funds roll over year to year
Often paired with high-deductible health plans

In order to use an HSA, you must be enrolled in a qualifying health plan. Annual limits for 2024 are $4,150 for singles and $8,300 for families combined with qualifying HSAs. Save for future expenses and plan ahead to make sure you have funds set aside.

Direct Payment Plans with Doctors

Most physicians and medical facilities already have payment plan options. These save money or allow payments to be made over time without a hard credit check. Tips for success include:

Ask early about payment plan options
Get terms in writing
Propose a monthly payment you can handle
Confirm no extra fees

Open dialogue with your provider can help make payment plans more manageable and potentially save money.

Investigating Financial Assistance Programs

There are financial assistance programs to help pay medical bills if you qualify. Some options include:

Hospital charity care programs
State aid for low-income residents
Non-profit grant funds
Disease-specific foundations

Eligibility varies based on income and medical necessity. Apply as early as possible—funds are limited and can be fully depleted.

Non-Profit Credit Counseling Insights

Non-profit credit counseling organizations provide debt management assistance to millions of Americans. Services include:

Free budget review
Debt management plans
Medical debt negotiation
Advice on credit options

Unlike a generalized FAQ, credit counselors can provide personalized guidance to your specific situation. If you’re feeling overwhelmed by your debt, these services can provide a realistic plan to get you back on track.

Conclusion

Whether you’re looking to use CareCredit or another form of medical financing, it’s important to understand how interest works. High-interest rates can add up quickly, and those promotional offers usually have caveats. Often lenders will advertise on your credit that they are providing sweet terms, but there are hidden costs over the long run. Instead of saving money, some people find themselves paying double what they originally intended. Consider all your options—payment plans, health savings, or negotiating with the billing department. Folks in LA have to get creative with care expenses, so compare prices and read the fine print. Do your due diligence, read the terms and conditions, and consider what works best within your means. Have questions or want additional advice on using CareCredit or other medical financing? Get in touch, and we’ll figure out your next step together.

Frequently Asked Questions

What is CareCredit and how does it work?

What is CareCredit and how does it work? You take it to any provider that accepts it and then pay off the balance over time — usually with interest, but sometimes with promotional financing offers.

What interest rates should I expect with medical financing?

Interest rates are highly variable, typically starting around 0% during promotional periods and exceeding 26% APR. For medical financing, beware of interest rates. Always read the fine print before agreeing! Understand that rates will go up if you miss payments and when the promo period expires.

How do deferred interest promotions work with CareCredit?

Deferred interest promotions mean you pay 0% interest if you pay off the entire balance before the promo period ends. If you don’t pay it off in that time, interest charges start accumulating from your original purchase date—which can add up quickly.

Does applying for CareCredit affect my credit score?

Does applying for CareCredit hurt my credit score. Responsible use such as making your payments on time will improve your score over time.

What are the risks of using medical financing for healthcare expenses?

Without understanding the consequences of high interest rates after promotional periods end and missed payments, patients can easily find themselves in overwhelming debt. Be sure to check all of the fine print, and ensure you can pay your full balance before interest begins to accrue.

Are there alternatives to medical financing in Los Angeles?

Yes. Inquire with your provider about payment plans, search for non-profit help in your area, or utilize health savings accounts (HSAs). Other hospitals have financial assistance programs available for residents of Los Angeles.

What should I consider before choosing medical financing?

Compare interest rates and repayment terms, reconsider your budget. Always compare options and minimum fees. Read the fine print to understand all fees. Have a plan to pay monthly so you don’t incur expensive interest fees.