When patients explore ways to cover medical expenses not covered by insurance, two very different financing models often come up: healthcare credit cards like CareCredit, and personal loans from providers like LendingClub.

Although both can help patients spread costs into monthly payments, they work in very different ways. CareCredit functions like a revolving line of credit, while LendingClub provides installment loans with defined term lengths.

For patients, the right choice may depend on treatment cost, credit score, and whether they want flexibility for ongoing care — like routine dentistry or wellness services — or predictable financing for a one-time treatment like dental implants or a tummy tuck.

How CareCredit Works

CareCredit has become one of the most recognized names in healthcare financing. Backed by Synchrony Bank, it functions as a reusable credit card that patients can use with more than 270,000 providers nationwide.

Patients can prequalify online without harming their credit score, and if approved, they become cardholders with access to a revolving line of credit that can be used at any participating CareCredit provider. This can be applied toward all kinds of healthcare treatment, including oral health procedures, plastic surgery, dermatology, or even veterinary and wellness services.

• Credit limits: Up to $25,000
  
• APR ranges: ~32.99% standard, with promotional no-interest plans (6–24 months)
  
• Application process: Soft check for prequalification, hard pull for final credit approval
  
• Payment options: Revolving balance with a minimum monthly payment required‍
• Prepayment penalty: None, but missed payments trigger deferred interest

When evaluating CareCredit, it’s important for patients to understand the company’s 0% interest plans. Many are marketed as “no interest,” but if the balance isn’t paid in full by the end of the promotional period, interest is charged retroactively from the original purchase date.

This can come as a surprise to a new patient who expects affordable payment options but ends up with a steep bill. If you sign up for promotional financing, make sure that you’re able to pay off the entire balance — on time every month — by the end of the period.

How LendingClub Works

LendingClub began as a peer-to-peer lender and has since become a regulated online bank with its own healthcare financing arm, LendingClub Patient Solutions. Instead of revolving credit, it provides personal loans that are funded directly to the borrower, who then makes payments to the practice.

Patients can apply through lendingclub.com, and most credit decisions are made within 1–2 business days. Because LendingClub runs a full credit report check, eligibility is more restrictive compared to some other financing companies.

• Loan amounts: Up to $60,000
  
• APR ranges: ~7.9% to 35.99%
  
• Loan term length: 24–84 months
  
• Application process: Full underwriting — hard credit check and income verification required
  
• Payment plans: Fixed monthly payments, no prepayment penalties
  

This model can work well for larger individual procedures like dental implants, since patients know exactly what they owe each month and how long repayment will take.

However, LendingClub is not designed to integrate with healthcare systems at the point of care. It can take days for borrowers to get their funds, which can further delay treatment — in some cases indefinitely. More modern solutions like Cherry and Affirm are designed to integrate at checkout, allowing patients to move forward with treatment the same day.

CareCredit vs LendingClub: At a Glance

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Choosing Between CareCredit and LendingClub: What to Consider

The best choice depends on patient goals and practice needs:

• CareCredit is useful for patients who want a reusable credit line for recurring expenses like cosmetic dentistry, orthodontics, or wellness care. But deferred interest and high interest rates make it risky if balances aren’t paid quickly.
  
• LendingClub appeals to borrowers undergoing costlier one-time procedures who prefer fixed term lengths and predictable payment plans. Still, strict eligibility and slower funding can frustrate both patients and practices.

Alternatives to CareCredit and LendingClub

Cherry

Cherry is a modern financing company built specifically for healthcare expenses that aren’t covered by insurance, like plastic surgery, dermatology, cosmetic dental treatment, aesthetics, and even veterinary care.

Unlike a revolving credit card, Cherry follows a buy now, pay later model with transparent payment plans and an instant application process.

Patients can apply with just a soft credit check in under 60 seconds, and get an instant approval decision on loans up to $50k, terms up to 60 months, and APRs as low as 0% for qualified borrowers (true 0% APR with no deferred interest traps).

For practices, Cherry is designed to eliminate risk and improve cash flow. Providers are funded upfront, with no chance of loss if a borrower defaults. Merchant fees are the lowest in the industry, and loan amounts are higher than other solutions like CareCredit, making Cherry a strong fit for high-ticket procedures. Another distinguishing factor is exclusivity: funds are tied to the specific service provider where the patient applies, ensuring loyalty and repeat treatment.

Pros:

• 60-second application process with a soft check, no impact on credit score
  
• Instant credit decision with 80%+ approval rates across all credit scores
  
• True 0% APR for qualified borrowers, no deferred interest traps
  
• Loan amounts up to $50,000 for high-cost procedures
  
• Practices funded upfront, with no risk if patients default
  
• Industry’s lowest merchant fees
  
• Funds exclusive to the specific service provider where the borrower applies
  

Cons:

• New loan required for each treatment 

Sunbit

Sunbit began in auto repair financing but has since expanded into dentistry, vision, and wellness care. It’s popular with patients who have lower credit scores, since approval rates are high even for those who might not qualify with traditional lenders. The process is simple: patients apply at the point of care with a quick soft credit check, and approval decisions come back almost instantly.

However, Sunbit financing isn’t always straightforward. Some offers rely on deferred interest promotions, and patients may be asked to make a down payment to secure their loan. While its funding cap of $20,000 works for smaller procedures, it may not cover the full cost of more extensive treatments. For practices, merchant fees are relatively high, starting at 4.7%.

Pros:

• High approval rates for borrowers with lower credit scores
  
• Quick application process with soft check
  
• Financing up to $20,000
  

Cons:

• Some offers rely on deferred interest promotions
  
• Merchant fees start at 4.7%
  
• Funding cap may not cover high-ticket treatments
  

Scratchpay

Scratchpay is designed around installment payment plans rather than revolving credit — and though it’s primarily used for vet care, it has since expanded into human healthcare areas like dental care, vision care, and wellness services. Patients apply with a soft credit check and, if approved, receive a one-time loan tied to a specific procedure.

The flexibility of Scratchpay lies in its multiple plan options, ranging from shorter no-interest terms to longer installment schedules — though some of these promotional plans charge deferred interest.

Patients appreciate the absence of prepayment penalties, but loan amounts top out at around $10,000 — making it viable for smaller expenses like preventive care or one-time costs like dentures, but limiting its usefulness for more expensive procedures like elective surgeries. Practices also need to weigh higher merchant fees compared to other solutions.

Pros:

• Easy application process with a soft credit check
  
• Flexible payment options with terms up to 36 months
  
• No prepayment penalties
  

Cons:

• Loan amounts capped at around $10,000
  
• Some plans include deferred interest
  
• Higher merchant fees compared to other solutions
  

Affirm

Affirm is one of the most widely recognized BNPL lenders in e-commerce and has brought its model into healthcare. Patients apply directly at checkout or at the point of care, and if approved, receive a fixed-term loan with clear repayment dates. Transparency is a key selling point: borrowers know their interest rates, monthly payments, and payoff schedule upfront.

Affirm can be appealing for smaller-ticket procedures since some loans come with true interest-free options. However, loan amounts are limited to about $17,500 — often too low for high-cost procedures. On the provider side, Affirm’s merchant fees are steep (around 5.99% + $0.30 per transaction), which can eat into margins compared to healthcare-specific solutions.

Pros:

• Transparent terms with clear disclosure of interest rates and fees
  
• Loan term lengths from 3–36 months
  
• Some true interest-free plans available
  

Cons:

• Loan amounts capped at ~$17,500, often too low for high-cost procedures
  
• High merchant fees (around 5.99% + $0.30 per transaction)
  
• Smaller presence in healthcare compared to specialized financing companies

Conclusion: Comparing LendingClub and CareCredit

Both CareCredit and LendingClub offer ways for patients to spread medical costs into manageable monthly payments. CareCredit offers revolving access through a healthcare credit card, while LendingClub provides structured personal loans with long, fixed term lengths and higher funding amounts.

However, each has drawbacks: deferred interest and high APR ranges with CareCredit, or funding delays, narrower eligibility, and strict credit approval processes with LendingClub. Neither delivers the seamless, same-day dental financing experience that practices need.

That’s why more than 40,000 providers now use Cherry. With instant approvals, true interest-free payment options for qualified borrowers, and upfront funding to practices, Cherry removes barriers for patients while protecting practice revenue. Find out how Cherry could transform your practice. Claim your complimentary demo here.