With a new healthcare bill in the works, this is as good of a time as ever to discuss medical credit cards. They work the same way as any credit card, except they come in handy when faced with an unexpected health expenses.
They are offered at many doctors and veterinarian offices across the country and could be offered to you when you are unable to pay the whole bill at once. The approval rate for these are high and you could even be approved while standing at the doctor’s office. If approved, you may have anywhere from six months to two years to pay back the sum interest-free. What a lot of people do not realize is that these cards use financing called deferred interest.
Let’s talk about this for a second. Interest free sounds great, right? Of course it does! However, if you are unable to pay off the bill in full by the end of the discussed timeline, your interest will sky rocket. This goes into effect immediately, even if you only owe a little more money.
This all sounds like basic credit card lingo, but many people skip reading the bottom line, especially when they are presented with sudden high expenses. Just like other credit card accounts, medical credit could also effect your credit score. If you are in the market to be approved for a mortgage, or an auto loan, it is highly recommended that you do not open any new cards as this will lower your score.
This is a high risk financial situation and if that makes you nervous start with asking your doctor if they offer a payment plan. If this isn’t a possibility, do your homework and only consider medical credit if you are able to pay it off before the end of the deferred interest.