If you are an Indiana resident struggling with high medical expenses or debt, a medical credit card might seem like a good idea. However, a medical credit card is not always the best option, and there are several things you should know before deciding to sign up for one.
How does a medical credit card work?
A medical credit card works just like any other credit card. Offered by major financial institutions, a medical credit card gives you a specific line of credit to use for medical expenses. The card can cover all family members, and sometimes even pets.
After charging your medical expenses or treatment costs on the card, you receive a monthly statement. You can pay the balance off or make a minimum payment.
Read all the fine print
Although it may sound like exactly what you need, before signing up for one, read the details of the credit card’s terms. When you first sign up, you will likely receive various promotional offers, such as no interest for a certain time, or a low interest rate.
However, the fine print may reveal some unpleasant terms. For example, your interest rate could skyrocket if you do not pay off your entire balance at the end of your promotional period or miss a payment.
Think carefully before deciding
Another potential problem with medical credit cards is that they are often offered to people who are already in a desperate situation with medical debt. This significantly decreases the chance that people signing up have a detailed understanding of the terms.
One of the most common places you may be offered a medical credit card is at your doctor’s office itself, when your main priority should be your health, not your financial situation.
There are other options
If this happens, ask the credit card company to clarify exactly what it is offering you. Most doctor’s offices and medical providers will allow you to make a payment plan.
They may offer you a card, but use vague language, making you think you’re signing up for a payment plan.
The bottom line is there are several viable options out there, such as bankruptcy, for eliminating medical debt. It is best to learn about them all before deciding if a medical credit card is right for you.