Medical expenses can add up quickly, whether you’re paying for dental care, a wellness visit, an eye exam, or a medical procedure that insurance doesn’t fully cover. Many people turn to medical credit cards like the CareCredit credit card to manage out-of-pocket healthcare expenses over time. But these financial products often come with high interest rates, strict credit approval criteria, and promotional period rules that can be hard to navigate.

The Consumer Financial Protection Bureau (CFPB) has raised concerns about how deferred interest terms and opaque card offers can cause cardholders to rack up unexpected interest charges or carry a balance longer than intended. Because of this, more patients and medical providers are looking for financing options that offer predictable monthly payments, clear terms, and less pressure on their credit report.

What Are Medical Credit Cards?

Medical credit cards, like the CareCredit card powered by Synchrony Bank, are specialty credit cards designed for healthcare expenses. They work similarly to traditional credit cards offered by Visa, Mastercard, American Express, and Citi, but they can only be used for medical services at participating healthcare providers. People often use them to pay for out-of-pocket costs tied to dental care, dermatology, chiropractor visits, wellness treatments, or other healthcare services that fall outside their health insurance coverage.

To apply, patients complete a credit check through the credit card issuer, and the resulting credit approval often depends heavily on their credit report. While some credit cards offer promotional financing or a low introductory APR, these card offers typically come with fine print related to deferred interest, variable APR changes, annual fee structures, or large late fees if the minimum payment isn’t made by the due date.

The Limitations of Medical Credit Cards

Medical credit cards can offer short-term help, but they often create long-term challenges. Many rely on deferred interest promotions, meaning if the full balance isn’t paid off by the end of the promotional period — or if a single payment is missed during that period — patients may owe months of retroactive interest from the date of purchase. This structure can turn what looks like an interest-free offer into a high-cost surprise.

Other limitations include high interest rates after the promotional period ends, credit limits that may not cover the full cost of care, and strict approval rules that shut out many patients. Hard credit checks will lower a patient’s credit score, and late fees or complex repayment rules can add stress during times when patients already feel financially stretched. Because of these issues, many families prefer financing options with clear loan terms, lower interest rates, or flexible approval requirements.

12 Patient-Friendly Alternatives to Medical Credit Cards

Below are more patient-friendly options that provide clearer repayment plans and help people avoid the pitfalls of traditional credit card companies and interest-driven credit card products.

1. Buy Now, Pay Later (BNPL) for Healthcare

BNPL financing has become a popular way for patients to manage medical bills without relying on a new credit card or navigating promotional financing rules. Instead of dealing with a revolving line of credit, patients simply split their medical expenses into predictable installments. BNPL providers typically use a soft credit check that never affects a credit score, making it accessible to a wider range of borrowers — including those who may not qualify for traditional financial products.

With Cherry Payment Plans, a leading BNPL option built specifically for medical services, patients can apply in less than 60 seconds and get an immediate approval decision without harming their credit score. Qualified borrowers can access loan amounts up to $50,000 and flexible plans that suit their budget, from interest-free Pay in 4 to true 0% APR options up to 60 months. There are no hidden fees, prepayment penalties, or deferred interest charges.

Practices benefit from Cherry’s high approval rates across credit profiles — over 80% —  upfront payment within 2-3 business days, exclusive approvals that encourage loyalty, the lowest merchant fees in the industry, and a smooth patient experience trusted by more than 50,000 medical providers.

Pros of BNPL for Healthcare

• Soft credit check
• Predictable monthly payments
• True 0% APR options in some cases
• Upfront payment to practices
• High approval rates

Cons of BNPL for Healthcare

• Loan amounts and terms vary widely
• Fees for late payment may apply
• Some providers offer “no interest if paid in full” promos — the same as deferred interest

2. Medical Loans

Medical loans are installment loans created for financing healthcare expenses. They provide a straightforward approach: patients receive a lump sum to cover their medical costs, and then repay the loan over a set period of time with fixed monthly payments. This structure appeals to patients who want clarity from the start and don’t want to worry about promotional period deadlines or variable APR changes.

These loans can be helpful for larger healthcare expenses, such as surgical procedures or multi-step treatment plans. Because repayment terms and loan amounts are fixed, patients know exactly what to expect. However, medical loans typically require a full credit check, and the lowest rates often go to borrowers with strong credit history.

Pros of Medical Loans

• Fixed monthly payments
• Clear loan terms
• Useful for high-cost procedures

Cons of Medical Loans

• Hard credit check required
• Higher rates for poor credit scores
• No interest-free options
• No upfront payment to practices

3. Personal Loans

Personal loans are flexible financing options that can be used for a wide range of medical expenses. They work similarly to medical loans, but borrowers can use the funds for any healthcare services or related costs, such as prescriptions or follow-up care. Many people choose personal loans because they offer more freedom than traditional credit cards and avoid the complexity of promotional financing rules.

Banks, online lenders, and credit unions offer personal loans, and approval typically depends on a borrower’s credit history, income, and overall financial situation. Most lenders offer low-interest loans to borrowers with excellent credit, while others may face higher rates depending on the risk profile.

Pros of Personal Loans

• Flexible usage
• Fixed repayment plan
• Useful for large or unexpected medical costs

Cons of Personal Loans

• Hard credit check required
• Best rates reserved for strong credit profiles
• No true 0% APR
• No upfront payment to practices

4. Health Savings Account (HSA)

An HSA (health savings account) is one of the most efficient ways to cover healthcare expenses without taking on debt. With an HSA, patients contribute pre-tax dollars to a dedicated account and can use the funds for qualifying medical services. This setup can significantly reduce the total cost of healthcare, especially for families managing ongoing medical needs or high-deductible insurance plans.

HSAs are popular because the funds roll over year to year, and patients can accumulate savings over time. There are no interest charges, no late fees, and no credit check. The only downside is that HSAs are available only to those with qualifying high-deductible health plans, and contribution limits can affect how much is available at once.

Pros of HSAs

• Pre-tax savings
• Funds roll over annually
• No interest, fees, or debt

Cons of HSAs

• Requires high-deductible plan
• Contribution limits apply

5. Flexible Spending Account (FSA)

Similar to HSAs, FSAs (flexible spending accounts) help patients use pre-tax money to cover healthcare costs without relying on a new interest credit card. These accounts are offered through employers and allow patients to allocate funds toward medical services throughout the year. Because the full yearly election becomes available early in the plan year, FSAs are helpful for planned care or predictable expenses.

The biggest advantage of an FSA is immediate tax savings and the ability to cover certain healthcare expenses that insurance doesn’t fully reimburse. However, FSAs typically operate on a “use-it-or-lose-it” basis, meaning any unused balance may expire at the end of the year.

Pros of FSAs

• Pre-tax savings
• Immediate access to annual funds
• Useful for predictable care

Cons of FSAs

• Funds expire
• Lower annual limits

6. In-House Payment Plans

Some healthcare providers let patients divide their medical bills into installments directly through the office. In-house payment plans can be especially helpful for smaller medical expenses, routine visits, or ongoing care when patients want flexibility without applying for new credit cards.

These plans strengthen the patient–provider relationship and can be tailored to each person’s needs. However, because the practice takes on financial risk, not all healthcare providers offer this option, especially for larger or more complex care.

Pros of In-House Payment Plans

• Simple and direct
• May not require a credit check
• Builds trust with patients

Cons of In-House Payment Plans

• Financial risk for the provider
• Not practical for high-cost procedures

7. Employer Health Reimbursement Arrangements (HRAs)

HRAs allow employers to reimburse employees for certain healthcare expenses tax-free. They aren’t loans, and they don’t function like credit cards or traditional financing options. Instead, patients pay for medical care upfront and then request reimbursement through their employer’s program.

These benefits can significantly offset healthcare costs, especially for families managing a deductible or unexpected medical services. However, reimbursements aren’t immediate, and the program depends entirely on employer participation.

Pros of HRAs

• Tax-advantaged
• Lowers out-of-pocket costs
• No credit check

Cons of HRAs

• Not available to everyone
• Reimbursement is delayed

8. Financial Assistance Programs

Hospitals, clinics, and nonprofit organizations regularly offer financial assistance programs to help patients who meet specific income or hardship requirements. These programs may reduce or cover the cost of essential medical services, allowing patients to receive care they otherwise couldn’t afford.

While these programs can be invaluable, availability varies widely, and application processes may involve documentation, review periods, and strict eligibility requirements. They are most helpful for urgent or medically necessary care.

Pros of Financial Assistance Programs

• Low or no cost
• Helps patients with financial need
• No credit score requirement

Cons of Financial Assistance Programs

• Limited availability
• Long processing times

9. Cash Discounts

Some medical providers offer discounts for patients who can pay upfront in cash, debit, or direct bank transfer. These savings can meaningfully reduce the overall cost of care and help patients avoid interest charges, balance transfer fee concerns, or using credit cards that offer promotions with variable APR conditions.

Cash discounts work best for smaller or predictable expenses — like minor procedures, imaging, or lab work. They may not be realistic for larger surgeries or treatment plans.

Pros of Cash Discounts

• Lower overall cost
• No interest or fees
• No credit check

Cons of Cash Discounts

• Requires full payment upfront
• Not feasible for

10. Crowdfunding

Crowdfunding allows patients to raise money for medical expenses through friends, family, coworkers, or online communities. This approach has become more common for unexpected medical bills or situations where insurance falls short.

Crowdfunding offers flexibility because there’s no repayment, no interest, and no credit check. Success, however, depends heavily on social reach and timing, and results can vary widely.

Pros of Crowdfunding

• No repayment
• Helpful for emergencies
• No credit score needed

Cons of Crowdfunding

• Unpredictable outcomes
• Requires public sharing
• Favors stronger networks

11. Membership & Wellness Subscription Plans

Some clinics and wellness providers offer subscription-style programs that bundle routine care — such as checkups, screenings, or wellness visits — into a predictable monthly fee. This model can help patients avoid using credit cards for routine care and reduce overall healthcare expenses over time.

These plans encourage preventative care and can stabilize costs for people with ongoing needs. However, they are limited to participating providers and don’t typically cover major procedures or unexpected medical events.

Pros of Membership & Wellness Subscription Plans

• Predictable costs
• Encourages preventative care
• No interest charges

Cons of Membership & Wellness Subscription Plans

• Limited coverage
• Not available everywhere

12. Insurance + Financing Combination Strategy

Many patients combine health insurance with financing to manage deductibles, coinsurance, or uncovered treatments. This approach works especially well for families with high-deductible plans or situations where insurance only covers part of a medical procedure.

Financing the remaining balance can make care more affordable while avoiding the need for high-interest credit cards. The key is choosing financing options with clear loan terms and predictable monthly payments.

Pros of Insurance + Financing

• Reduces overall out-of-pocket expense
• Flexible for many healthcare services
• Smaller financed amount

Cons of Insurance + Financing

• Still requires financing for uncovered services
• Terms vary by provider

What Patients Should Look for in a Financing Solution

Choosing the right financing option comes down to finding a structure that supports both your budget and your overall medical needs. Patients should look for financing solutions that feel clear, manageable, and predictable — especially during times when healthcare costs may already feel overwhelming. Here are some key features to look for:

• Clear interest structure with no deferred interest
• Predictable monthly payments
• Soft credit check
• Transparent fees
• Loan terms that match your budget
• Support for both routine and unexpected medical expenses

What Practices Should Look for in a Financing Solution

For healthcare providers, the ideal financing partner should make it easier to both support patients and keep revenue moving smoothly. Practices should prioritize solutions that reduce administrative strain, encourage treatment acceptance, and deliver fast, reliable payment. Consider these features:

• High approval rates across credit profiles
• Upfront payment to reduce billing risk
• Low merchant fees
• Easy integration into consultations
• Clear communication for patients
• Reliable support from financing partners

Medical Financing FAQs

Can medical financing cover the same treatments that medical credit cards cover?

Yes. Most modern financing options can be used for the same types of medical services traditionally paid for with medical credit cards. This includes dental care, wellness visits, diagnostic testing, dermatologists’ treatments, chiropractors’ appointments, eye exams, and cosmetic procedures such as breast augmentation, breast reduction, rhinoplasty, liposuction, tummy tuck, and other plastic surgery procedures.

Financing is also commonly used for out-of-pocket costs tied to health insurance deductibles, prescriptions picked up at drugstores, medical equipment like CPAPs or hearing aids, and follow-up care from plastic surgeons related to cosmetic surgery or recovery.

Do my patients need strong credit to qualify for medical financing?

Not always. While traditional credit card companies rely heavily on credit score and credit history, many financing solutions — including BNPL providers like Cherry — use broader eligibility criteria. This makes them more accessible to people who may not qualify for a traditional interest credit card.

Some installment-based financing tools may even help patients build credit through consistent repayment, while others avoid reporting to the credit bureaus altogether, depending on the structure of the repayment plan.

Are interest-free financing options available?

Yes. Some financing platforms offer true interest-free plans for qualifying borrowers. These differ from promotional period offers tied to deferred interest. True 0% APR means no interest accrues during the repayment plan, even if payments are spread over a period of time.

Will applying for medical financing hurt my patients’ credit score?

Most BNPL platforms allow patients to check their eligibility through a soft credit check, which does not affect their credit score. Cherry always performs a soft credit check — never a hard credit check. Traditional financing options, like personal loans and medical loans, may involve a hard inquiry, which will temporarily harm their credit score.

How quickly can patients get approved?

Approval timelines vary. Cherry provides instant decisions and immediate funding upon approval. Traditional lenders may take longer, especially if income documentation or verification is required.

Can my patients use financing with health insurance?

Absolutely. Many patients use financing to pay for deductibles, coinsurance, or medical services not covered by insurance plans. This makes financing a useful tool even for people with comprehensive health insurance.

Are these financing options safer than using medical credit cards?

For many patients, yes. Financing solutions often offer predictable monthly payments, clear loan terms, and no deferred interest surprises. This helps prevent unexpected interest charges and late fees that can occur with credit cards.

How do medical practices benefit from offering financing options?

Financing helps practices improve case acceptance, reduce financial stress for patients, and enhance cash flow with upfront payment. Clinics that provide flexible payment options often see fewer billing challenges and more predictable revenue.

Are medical credit cards better than regular credit cards?

Not usually. Many patients compare medical credit cards to everyday rewards cards such as Chase Freedom Unlimited or Wells Fargo Active Cash, which offer cash back, cash rewards, perks, and often no annual fee.

These traditional cards can absolutely be used for medical expenses — everything from office visits to prescriptions at drugstores — and some even come with a 0% intro APR or other short-term APR offer that works much like promotional financing. The key difference is that rewards cards typically don’t rely on deferred interest, so there’s no risk of retroactive charges if the balance isn’t paid in full by the end of an APR period.

Medical credit cards are more restrictive and are designed specifically for healthcare settings. They may offer special financing, but the terms can be harder to manage, and the purchase APR after the promotional period is often much higher.

Unlike traditional cards, they don’t provide flexible payment plans, rewards programs, or the long-term value many people look for in a rewards credit card. For that reason, patients increasingly prefer financing tools with predictable monthly payments and clearer terms — especially for larger medical expenses that could lead to credit card debt if carried on a high-interest card.

Offer Transparent Financing with Cherry

Medical credit cards can offer short-term relief, but their deferred interest traps, high APR, and strict approval requirements make them difficult for many patients to manage. As healthcare costs continue to rise, families are looking for clearer, more predictable ways to handle medical expenses without taking on unnecessary risk or pressure.

Modern financing alternatives give patients a simpler path forward. Options like BNPL, medical loans, HSAs, FSAs, and reimbursement programs offer transparent repayment plans, flexible approval criteria, and support for both routine and unexpected medical needs.

Cherry makes this process even easier by giving patients a fast, soft-credit-check application, flexible terms up to 60 months, true 0% APR for qualified borrowers, and loan amounts up to $50,000 — all while helping healthcare providers expand treatment acceptance with 80%+ approval rates, and boost cash flow with upfront payment and the lowest merchant fees in the industry.

If you want to offer patients a smarter, more accessible alternative to traditional medical credit cards, request your personalized Cherry demo today.