Medical credit cards, like CareCredit, are used to pay for healthcare costs. They may seem helpful, but it is important to know how they work and the risks they carry.

Who offers medical credit cards?

You may be offered one by:

• Medical specialists, dentists, or eye doctors,
• Cosmetic surgery providers,
• Hospitals, surgery centers, or labs,
• Pharmacies or medical equipment suppliers,
• Veterinary clinics, and
• Funeral service providers.

Watch out for deferred interest

Some medical credit cards offer "deferred interest" for a period of time. But if you do not pay the full amount by the deadline, you may have to pay interest on the whole original amount. This can happen even if you owe a small amount at the end of the deferred interest time period.

Prepayment risks

Some providers may charge your card before you have a medical procedure. If you do not get the procedure, you may need to contact the credit card company to remove the charge.

Explore other options first

You do not have to accept a medical credit card. Before putting medical expenses on a credit card:  

• Check if you qualify for financial assistance programs. Nonprofit hospitals must offer financial assistance programs.
• Check if you can work out a payment plan with your provider.