How To Use A Credit Card To Cover Health Expenses

Medical payments may be pricey and surprising even after insurance coverage, and lots of Individuals aren’t ready to pay them out of pocket. Some folks could pull out their bank card to pay a medical invoice in the event that they don’t have the money readily available or just because they wish to earn rewards on the expense.

Sadly, 15 p.c of bank card debtors say emergency and/or surprising medical payments are the rationale they carry a stability, in keeping with Bankrate’s 2025 Credit score Card Debt Survey.

Not too long ago, I broke my tibia and fibula whereas snowboarding and underwent emergency surgical procedure for an intramedullary nail. The process alone price a whopping $69,000, and that didn’t embody the price of my anesthesia, X-rays, hospital keep, or bodily remedy. Happily, I’ve medical health insurance, so the incident rapidly reached the edge of my deductible and out-of-pocket most. Nonetheless, I’m staring down a number of thousand {dollars}’ value of medical payments.

As I’m creating my very own reimbursement technique, let’s discover when paying for medical payments with a bank card is an honest choice — and when it’s not. I additionally spoke to a doctor and medical billing professional about tips on how to not let medical debt damage your credit score rating.

Execs and cons of paying medical payments with a bank card

You need to use a bank card to pay hospital payments or different medical bills, however there are dangers.

The largest consideration is that, by paying your payments with a bank card, the medical debt turns into shopper debt. Federal protections restrict how medical debt impacts your credit score rating, and there are further pending guidelines that might hold medical debt off your credit score report totally. Client debt, nonetheless, is beneath no such rules.

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Execs

• May reap the benefits of a 0 p.c intro APR provide
• Rewards potential
• Comfort

Cons

• No federal protections on your credit score rating
• Excessive curiosity prices for those who carry a stability
• Elevated credit score utilization

How medical debt impacts your credit score

Because of latest federal guidelines, medical payments don’t impression your credit score historical past practically as a lot as different varieties of debt.

In 2023, the three main credit score bureaus started eradicating medical payments in collections beneath $500, lower than a 12 months outdated or already paid off from shoppers’ credit score studies.

Then, in early 2025, the Client Monetary Safety Bureau (CFPB) dominated that every one medical debt should be faraway from credit score studies — an estimated $49 billion for 15 million Individuals. Notice that this ruling may be challenged by the brand new administration.

Virgie Shiny Ellington, a doctor and medical billing professional at Crush Medical Debt, advises retaining your self beneath these medical debt protections. She explains that shopper debt — bank cards, private loans and HELOCs, for instance — is handled in another way than medical debt. When you pay a medical invoice with a type of strategies, it turns into shopper debt. With that change, you lose federal protections on your credit score.

If you find yourself carrying a stability in your bank card, that may increase your credit score utilization ratio, which is a credit-scoring issue. And making late or missed funds in your card or mortgage will damage your credit score rating.

When it is smart to pay medical payments with a bank card

• In case you’re paying for a supplier cost plan with a bank card. By arranging an reasonably priced cost plan along with your hospital or supplier, you may house out your funds and make them with a bank card in order for you. That may enable you flip a too-big medical invoice into manageable chunks that you may afford to repay. Simply keep in mind, for those who don’t pay your bank card assertion on the finish of the billing cycle, missed funds could present up in your credit score report.
• If you wish to earn rewards. Rewards bank cards provide factors, miles or money again on on a regular basis purchases. You probably have the cash readily available to pay the complete medical invoice, you possibly can cost it to your rewards card, reap the rewards after which repay the stability. Remember the fact that carrying a stability and racking up curiosity will outweigh the worth of any rewards, and, as soon as once more, this cost technique isn’t federally protected against exhibiting up in your credit score report.
• In case you don’t should pay curiosity. A 0 p.c intro APR bank card can give you 12 to 21 months (or longer!) of carrying a stability interest-free earlier than the common APR kicks in. That buys you time to repay medical payments with out accruing curiosity. Some 0 p.c APR playing cards additionally earn rewards, which implies you possibly can get money again or factors on these medical bills. You’ll simply wish to have a plan for paying off the stability by the top of the intro interval. Once more, your medical debt turns into shopper debt as quickly as you pay it with a bank card, so it isn’t federally protected and might have an effect on your credit score rating.

When to not pay medical payments with a bank card

• If it’d damage your credit score rating. Paying for medical payments with a bank card could have an effect on your credit score rating in additional methods than one. A bank card is taken into account shopper debt, which — not like medical debt — isn’t protected against showing in your credit score report. It could possibly increase your credit score utilization ratio, and it may additionally result in late or missed funds. In case you apply for a brand new card to pay these payments, that arduous inquiry can even ding your credit score.
• In case you’ll accrue curiosity. The typical bank card rate of interest is above 20 p.c, which is greater than that of most private loans. Different medical invoice cost choices cost no curiosity in any respect. In case you’re not in a position to repay the complete medical invoice in your bank card with out carrying a stability, it’s finest to not use your bank card. These curiosity prices will solely add to your debt.
• If it maxes out your credit score restrict. Maxing out or getting near your credit score restrict raises your credit score utilization ratio, which impacts your credit score rating. Specialists suggest retaining your credit score utilization under 30 p.c. Let’s say you cost a $2,500 medical invoice to a card with a $3,000 restrict; your credit score utilization will attain 83 p.c. In case your credit score utilization stays this excessive over a number of months, your credit score rating could take successful.

Are medical bank cards value it?

In case you have been handed an utility for a medical bank card at your supplier’s workplace, you may surprise if that’s the precise approach to pay.

Medical bank cards, supplied by issuers like CareCredit, enable you finance massive medical payments in month-to-month funds at zero curiosity — at first. Nevertheless, you’ll wish to examine the advantageous print for one thing referred to as deferred curiosity. In case you nonetheless have a stability as soon as the promotional interval ends, the issuer will cost for all of the curiosity you’d’ve owed since day one, based mostly on the common APR.

You would find yourself owing much more curiosity than deliberate — particularly as a result of medical bank cards typically cost greater rates of interest than typical bank cards.

Plus, debt on a medical bank card doesn’t obtain federal protections and can present up in your credit score report.

The easiest way to pay medical payments, in keeping with an professional

Shiny Ellington’s recommendation is to all the time pay the supplier immediately.

“After you have decided that the invoice that you just obtain and also you’re paying is one hundred pc correct,” she says, “make a cost plan immediately with the supplier who’s issuing the invoice for the providers you acquired.”

That’s as a result of your debt will keep categorised as medical debt, and can have much less or no impression in your credit score report.

Shiny Ellington suggests calling your supplier first to ask for a invoice with CPT codes, which helps you to calculate a good worth on your invoice based mostly on Medicare charges. Then, you may attempt to negotiate a brand new invoice with the supplier based mostly on what you’re keen and in a position to pay. You too can apply for monetary help, which nonprofit hospitals are required to supply.

Your supplier will sometimes provide an interest-free cost plan for numerous months. It may also give you a reduction for paying the invoice in full by the primary due date.

She says that some folks make their funds to the supplier with a bank card to get factors or money again. However “guarantee that it’s an quantity that you may pay each single month,” she advises. In any other case, a missed cost in your bank card invoice can have an effect on your credit score rating and begin accruing curiosity.

pay large medical payments

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How I’m paying for my medical payments

As I discussed, I’ve a number of thousand {dollars} in medical payments as a result of an emergency surgical procedure. Once I referred to as my supplier to ask about cost choices, I used to be supplied a 20 p.c low cost for paying my invoice in full by the due date. Or, I may select an 18-month cost plan with no curiosity.

Conveniently, I’m about to obtain my tax refund. And like 19 p.c of Individuals who anticipated a tax refund in 2024, I’ll use it to repay debt — particularly, my medical debt.

The 20 p.c low cost saves me a number of hundred {dollars} in the long term, and I’ve the money readily available to pay what’s left after my tax refund. So I’ll pay my entire invoice directly. As a result of I wish to earn rewards, I’ll use my bank card and earn 1X factors per greenback. However I’m solely utilizing my card as a result of I do know I can repay the stability, so it received’t damage my credit score rating.

Are you able to pay for medical health insurance with a bank card?

In case you’re self-employed, unemployed or an early retiree and enrolling in your individual medical health insurance, you could possibly pay your premiums with a bank card. Most of the foremost healthcare suppliers settle for bank cards.

However for those who obtain medical health insurance out of your employer, you most likely can’t pay for it with a bank card. Employer-sponsored plans allow you to pay premiums pre-tax, which implies they should be deducted out of your paycheck.

The underside line

pay your medical payments is sophisticated — on goal. Many establishments revenue by overcharging and accumulating curiosity from Individuals. By doing all your homework, you may repay your medical payments whereas defending your credit score rating and avoiding curiosity.

The easiest way to pay your medical payments is by paying the supplier immediately, both — if in case you have the money readily available — or with an interest-free cost plan. You need to use a bank card to pay the supplier, however strive to not carry a stability or miss funds. Your credit score rating could find yourself paying the value.