Should you use credit cards for healthcare expenses?

Medical expenses are a colossal financial burden to millions of Americans, with nearly 100 million U.S. adults facing medical debt, according to 2024 data from Statista. In times of unexpected healthcare costs, credit cards are typically seen as a handy and quick solution, offering instant payment options and temporary financial relief.

Yet, paying medical bills using credit cards has potential downsides—outrageous interest rates, mounting debt and potential credit score damage can turn short-term relief into long-term financial agony. Before swiping your card, it's wise to weigh the pros and cons. Below, we’ll explore when using a credit card for healthcare expenses might be a smart choice and when alternative financing options may be the better path forward.

What you’ll learn

• The pros of using a credit card for healthcare costs
• The cons of charging medical expenses to a credit card
• When it is a good idea to charge medical bills to a credit card
• Alternative sources of funding medical expenses
• Making the right decision for your financial health

The pros of using a credit card for healthcare costs

One of the best benefits of charging medical costs to a credit card is immediate access to care. If you require a procedure but insurance won't cover it—or you don't have the funds readily available—charging it to a credit card may be the fastest means of having the procedure completed.

Credit cards also offer more lenient repayment terms compared to some hospital payment plans since you can spread payments over several billing cycles. Some even offer 0% introductory APRs (annual percentage rates), which are convenient as long as you pay off the balance before the promotional period ends.

Additionally, some credit cards reward healthcare spending, offering cashback, travel points or other perks on medical expenses. While this won't erase the cost, it can provide a small financial benefit on an unavoidable expense. Timely payments can also help improve your credit profile by positively impacting credit utilization and payment history. 

An additional advantage is the option to consolidate multiple medical bills into a single card. Instead of having to monitor multiple payment due dates and plans, having them all in one place simplifies budgeting and reduces the risk of late payments or late fees. When used responsibly, a credit card can be an efficient method of managing medical costs—just be sure to have a solid repayment plan to avoid accumulating high-interest debt.

Tip: If you're planning to charge medical bills to a credit card, get one with an introductory APR as low as 0% and make a repayment plan to settle the balance before the interest takes effect.

The cons of charging medical expenses to a credit card

While credit cards may offer temporary relief, their potentially exorbitant interest rates are a risk as a long-term solution. Credit cards can have 16%–30% APR, and thus medical debt can accumulate very quickly if not paid off quickly.

One of the worst risks is becoming trapped in a debt cycle. Large medical bills can increase your credit utilization, which can lower your credit score. If only paying minimum payments, you could be saddled with the debt for years and pay a lot more than the original medical cost in the form of accumulated interest.

A second disadvantage is losing the ability to negotiate with medical providers. Some hospitals and clinics offer interest-free payment plans, financial assistance programs, or sliding-scale fees based on income. But once a bill is placed on a credit card, you're at the mercy of the issuer's terms, which could include high interest rates—eliminating the potential for a cheaper alternative.

Late and missed payments also carry long-term financial consequences. If you fall behind, you may be assessed late fees, penalty APRs or even account closure, all of which can adversely affect your credit score.

Because of these risks, it generally makes more sense to explore other payment options before charging medical expenses to a high-interest credit card. Hospital payment plans, medical loans and health savings accounts (HSAs) or flexible spending accounts (FSAs) may provide less expensive and more forgiving ways to pay for your healthcare needs.

Tip: Discuss payment plans or financial assistance programs that are offered by your healthcare provider before using a credit card for medical expenses.

When it is a good idea to charge medical bills to a credit card

Although charging medical expenses to a credit card is not always the best option, there are a few instances where it is an acceptable one. It simply must be done in such a way that no additional interest and financial stress is tacked on.

Consider using a credit card if:

• You can settle the balance in full before interest accrues. If you are certain you can afford to pay for the medical bill within your credit card's interest-free term, then a credit card can be an efficient way of funding medical expenses without incurring additional costs.
• You have a 0% APR or low-interest credit card. If you already have a credit card with a 0% APR introductory offer or a low-interest credit card, it will be a less expensive option to charge your medical expenses to it than to take out an additional loan with a higher interest rate.
• You're working towards a sign-up bonus. If you're already planning on opening a new credit card account and it offers a sign-up bonus after a certain spending threshold, charging the scheduled medical expenses to the card may help you reach the goal without impacting your daily budget.
• There are no other superior financing options. If you don't qualify for a medical loan or other financing options that carry lower interest rates, then credit card use may be the option of last resort. In this case, you need to compare both your existing cards and new ones that you qualify for to obtain the best deal for your unique situation.

Tip: If you have a large medical bill, call your credit card company and ask for a temporary APR reduction.

Alternative sources of funding medical expenses

Before charging medical expenses to a credit card, attempt to negotiate your bill directly with your healthcare provider. Most clinics and hospitals offer discounts for up-front payment or have financial assistance for qualifying individuals. Some providers even offer interest-free payment plans, which cost less than high-interest credit card debt. Besides dealing directly with the medical provider, the following are additional options.

Medical credit cards: A specialty option

Although medical credit cards function exactly the same as regular credit cards, they are exclusively for healthcare expenses. Many of them offer deferred interest plans, with no interest if you repay the balance within the promotional period. But if you fail to repay the full balance on time, retroactive interest is applied to the full amount—typically at exorbitant rates. Medical credit cards could be a good option if you are certain you can pay the balance within the promotional period.

Personal loans: A potentially lower-cost alternative

If you qualify for a personal loan, it could potentially be a more appealing option than a credit card. Personal loans sometimes have lower interest rates and allow you to repay over a longer period. This may make repayment more predictable and affordable, especially for larger medical expenses.

Health savings accounts (HSAs) and flexible spending accounts (FSAs): Tax-advantaged options

If you have access to an HSA or FSA, these accounts allow you to pay for qualified medical expenses using pre-tax dollars. By paying with tax-advantaged dollars, you reduce your overall cost of healthcare and can avoid interest charges altogether. HSAs, in particular, allow you to roll over unused funds from year to year, so they're an excellent tool for paying for long-term medical expenses.

Bottom line

Before using a standard credit card, try every other option first—negotiating down your bill, paying with an HSA/FSA, or even taking out a low-interest personal loan can potentially save you hundreds or thousands of dollars in interest. If a credit card is the best option for your situation, ensure that you have a plan to pay it back to avoid long-term financial difficulty.

Tip: Investigate hospital charity programs—some facilities offer financial assistance that can eliminate or reduce medical bills for qualifying patients.

Making the right decision for your financial health

The best way of avoiding financial trouble from medical expenses is to choose the payment method that works best for you. If you have a low-interest or 0% APR credit card and you're sure you'll be able to repay the balance before interest is applied, it's a convenient way of paying for it. However, if a better alternative with less cost over an extended period of time is an option, it's generally the way to go.

If you still wish to use a credit card to finance healthcare expenses, ensure you have a repayment plan and stick to it. This will protect you from falling into debt and damaging your credit score. Both your physical and financial health matter. Do not shy away from considering multiple options and investigating beforehand when it comes to making any decision about how you finance medical bills. With effective planning and budgeting, you will be able to manage healthcare expenses without having to sacrifice your financial well-being.