Medical Credit Cards: Are they a good deal?

(Updated: Jan 15, 2025)

High medical bills can be really tough to pay. But the credit card industry has swept in with their solution: the “medical credit card.” But before you sign up, think twice.

“Medical credit cards” are a relatively new offering, often  promoting 0% APR interest for an introductory period of 6-18 months. Intended to pay for medical expenses, these cards are popping up in doctors’ offices (especially eye and dental care) and now even on hospital billing pages. 

Unfortunately, many folks aren’t aware that the interest rates for these cards are normally higher than regular credit cards. According to the Consumer Financial Protection Bureau (CFPB), ScratchPay, a popular medical credit option, can have interest rates up to 36%. People who sign up for these cards may not realize that if they miss a payment, or can’t fully meet their monthly minimum, they’ll incur high late fees. And even worse, a late payment can trigger that high interest rate which will be applied retroactively on the entire balance.

PIRG is raising the alarm. When medical providers offer these “medical credit cards” in their offices, there is an implied trust that the doctor who cares for their patients’ physical health is also offering something good for their financial health. Nothing could be further from the truth. Medical credit cards are often offered to people who would otherwise qualify for financial assistance or be eligible for a low, or no-cost payment plan to pay for their medical bills.

The Consumer Financial Protection Bureau issued a warning in May 2023 warning about the dangers of medical credit card. And three federal agencies gathered information  about patient experiences with medical credit cards. Read PIRG’s comments to federal regulators on how to solve the problem of medical credit cards. But no new protections have been put in place. 

If you have had an experience with medical credit cards, we ask you share your story with us.   

Answer any of these questions: 

1. Have medical credit cards ever been offered to you by your health care provider? Were you offered other options, such as financial assistance or a way to pay the office in installments?

2. If you have used a medical credit card or loan to pay for your care, what was your experience with the product? Did you understand the terms and late charges? How much did you pay in interest and/or fee charges, which added to the cost of your care? How did using a medical credit card or loan affect your credit score and your ability to access credit? Would you use a medical credit card or loan to cover medical expenses again? Why or why not?

3. Have you ever tried to dispute a medical bill you paid using a medical credit card or loan? If so, please describe your experience.

4.  Have you ever felt pressured to pay for care using a medical credit card or other credit card when scheduling medical care? If so, please describe your experience.

5. Have you ever used or been pressured to use a medical credit card or loan to pay a bill that you believe should have been covered by your health insurance? If so, please describe your experience.