Paying for Dental Work With a Medical Credit Card: The Deferred Interest Catch

Crowns, implants and dentures can cost thousands of dollars, and dental insurance or Medicare often covers little of it. Many dental offices offer to sign you up on the spot for a medical credit card with no interest for 6, 12 or 18 months. Here is what the Consumer Financial Protection Bureau (CFPB)¹ found about these cards, and what to check before you sign.

How these cards work

The CFPB explains that a staff member at the office usually signs you up, the card company checks your credit, and then it pays your provider. You owe the card company.²

Medical credit cards were traditionally used for care insurance didn’t cover, such as dental work and hearing exams.²

The deferred interest catch

Many of these cards use deferred interest. If you pay the full balance before the promotional period ends, you pay no interest. But if any balance remains, or you pay late, you can face significant interest and fees, and your credit can suffer.² With deferred interest, all of the interest that built up may come due when the promotion ends.¹

That isn’t the same as a true 0% offer, where interest starts only on the balance left after the promotion.

What the CFPB found

In a 2023 report, the CFPB found:¹

• High rates. Publicly available terms showed rates of 26.99% for medical credit cards and 16% for medical installment loans, higher than typical credit cards.
• Large sums. From 2018 to 2020, people used deferred-interest medical cards or loans for almost $23 billion in care across more than 17 million purchases, and paid $1 billion in deferred interest.
• Dental is common. These products are used for dental and vision care, among many other services, for bills from $35 to $40,000.
• Offered at the front desk. Patients are often offered these cards in the provider’s office, even when insurance might cover the care or they qualify for financial assistance.

Questions to ask before you sign

1. What will my insurance or Medicare plan pay? Get a written estimate first. Our article on what Medicare dental coverage pays for explains the basics.
2. Do you offer a cash discount, an in-house payment plan, or a way to phase treatment?
3. Is this deferred interest or true 0%? Ask what happens if $1 is left at the end of the promotion.
4. What’s the interest rate after the promotion, and is there a late fee?
5. Can I divide the total by the months and pay it off before the deadline? If not, compare other options.

The CFPB suggests comparing an existing credit card or a personal loan from your bank or credit union, and notes you can take time to decide if your procedure isn’t urgent.² It also says medical bills can contain errors that you can negotiate, and inaccurate medical debt on your credit report can be disputed.²

Make the payoff plan in writing

If you do use a deferred-interest card, set up automatic monthly payments that clear the full balance at least one billing cycle before the promotion ends. Write the end date on your calendar.

Try: “Before I sign up for financing, can you give me a written estimate of what my plan will cover, and do you offer any payment plan without interest?”

Is It My Breath? includes a visit script. Use it to bring your questions about treatment options and costs to your next dental visit.