- For Patients
- by Sara McFarland
Should You Pay for Your Medical Procedures With a Credit Card?
If you’re lucky enough to have good medical coverage and you need a medical procedure, your insurance will likely cover the cost of the surgery, consultations, appointments and even follow-up care.
But what about if your insurance won’t cover your medical procedure? What if you don’t have insurance and are facing expensive medical bills? Or, what if you’re having an elective procedure you will have to finance on your own? Can you even get a plastic surgery loan?
We’ll help you answer these questions.
Things to consider about paying for medical procedures with a credit card:
Yikes: Credit card debt is usually financed at a 20%, or higher, interest rate
Let’s say you’re going to use a credit card to pay for a C-section that will cost you $20,000. If your credit card charges you a 20% interest rate and your minimum monthly payment is $400, that means it will take you a little over 9 years to pay it all off and you’ll end up paying $23,359.59 in interest alone.That is more than double the cost of your actual C-section!
Yay: Credit card perks could make it worth it
If your credit card has sweet point perks or cash back options, it might be worth it to put your procedures on your card. If your current card doesn’t have perks, you could open a new account. Pick a card that has no annual fee and a 0% introductory period to pay your first payment.
Nay: Large purchases can tie up your credit line and affect your credit
By putting large amounts on your credit card without paying it off in a timely fashion, you increase your credit utilization ratio. Basically, having more debt and not a lot of available credit makes your credit score plummet.
>> Read More: Understanding Your Out-Of-Pocket Maximum
Other ways to pay for medical procedures:
- Payment plans through your doctor’s office
- Pro: Your doctor has the ability create a more flexible plan just for you. Also, late payments won’t likely impact your credit score.
- Con: If your doctor sends you to a collection agency, thus affecting your relationship with that doctor. This is especially important if you rely on them for ongoing care.
- Healthcare credit cards
- Pro: You won’t use the credit line to overspend on other random purchases, helping you to keep better track of your medical expenses.
- Cons: These type of cards often come with hefty interest rates after the introductory period has passed. Also, not all providers offer health care credit cards as an option.
- Patient financing options
- Pro: Medical loans are built specifically with expensive procedures and medical care in mind. Since lenders, like the ones that Parasail partners with for patient financing, know that you’re paying larger amounts they give you a longer amount of time to pay off your balance.
- Cons: If you have bad credit, it will be harder for you to get a patient loan. Fortunately, there are a number other factors that are considered when it comes to patient financing options.
Ultimately, whether or not you pay for your medical procedure with your credit card is entirely up to your personal situation. For some patients, putting their entire medical procedure on their credit card could score them free flights and cash back, but for others it’s best to explore other patient payment plan options.
Wondering if you qualify for a patient loan? Simply click below and fill out your information to see how much you qualify for using a Parasail payment plan. Don’t worry, there’s no risk to you!