Alternatives to Medical Credit Cards
If a certain procedure or treatment requires you to pay out of pocket, explore one of the following options before signing up for a medical credit card:
- Negotiate a Payment Plan: Ask your medical provider to set up an installment plan with you. Most caregivers and hospitals will work with their patients and allow interest-free payment plans.
- Ask for Charity Care: If you have low income and are being treated at a hospital, ask if you qualify to receive Charity Care, a state-run program that requires hospital staff to provide services for free or at a reduced cost to those who meet eligibility requirements.
- Seek Public Assistance: Do some research on programs that are available in your area (e.g., dental services offered for free at many public health facilities), especially if you’re a veteran or have low income.
- Budget & Save: If you don’t need the procedure just yet, put away some of your income every month until you have enough to cover the cost. And in case you have an urgent, unforeseen expense, your savings can double as an emergency fund.
- Get a 0% Credit Card (Without Deferred Interest): If you have good credit, shop around and compare traditional 0% credit cards that allow you to spread payments over a certain period without incurring finance charges. Make sure the card doesn’t come with a deferred interest policy and use a credit card calculator to determine what monthly payments you’ll need to make in order to be debt-free by the end of your card’s introductory period.
- Seek a Medical Loan with a Lower Interest Rate: Lenders such as American Healthcare Lending and East Bridge Funding, among others, offer installment loans — not medical credit cards — designed specifically to cover health care expenses but at more affordable terms. American Healthcare Lending offers rates starting at 5.99%; there is no interest-free period. At East Bridge Funding, rates begin at 14.99%, but they also offer 0% financing for up to 18 months (with no deferred interest feature). However, East Bridge Funding loans can only be used at specific health care facilities, so make sure to carefully review the terms of any offer before signing up.
- Talk to a Credit Counselor: If you struggle with medical debt, contact a professional to help you see a clear picture of your finances and find room in your budget to cover a procedure you need. Visiting a reputable credit counselor is an inexpensive (often free) and effective option.
- Pay As You Go: Ask to be billed for each visit instead of up front for all the required visits in your treatment plan. That way, you won’t lose the money if you switch to a different provider or stop treatment halfway.
- Borrow Against Your Home Equity or 401(k): Although we strongly advise against going this route, these may be options for those in the direst situations who need money for absolutely necessary procedures. Homeowners can borrow up to 80 or 90 percent of their home equity and those with a 401(k) plan can borrow as much as 50% of their balance (up to $50,000) and pay it back over a period of up to five years.
