Covering healthcare costs has never been simple. Even with health insurance, patients face deductibles, uncovered medical procedures, and other out-of-pocket expenses.

When elective treatments like plastic surgery, cosmetic dental care, and weight loss programs can run thousands of dollars, it’s not just patients who struggle. Providers face a challenge, too: how to keep treatment accessible without compromising cash flow.

This is where financing options come in. Patients today are often presented with two very different paths: personal loans from lenders like Prosper or medical credit cards like CareCredit. While both help patients avoid paying out-of-pocket all at once, the structure of these solutions impacts not only patient well-being but also practice revenue and operations.

How Prosper Works

Founded in 2005, Prosper is known as one of the first peer-to-peer lending platforms in the U.S., connecting borrowers with both institutional investors and credit unions. Today, it operates more like a digital banking marketplace, offering unsecured medical loans through Prosper Healthcare Lending, as well as personal loans that can be used for a variety of needs — from refinancing debt to purchasing medical equipment.

For Providers

Prosper can feel appealing because it offers higher loan limits (up to $50,000) and predictable repayment through fixed monthly payments. Patients with a strong credit score and credit history may qualify for low-interest loan rates compared to a traditional medical credit card.

However, the process isn’t immediate: applicants must prequalify through a soft credit check, complete full underwriting with a hard pull on their credit report, and wait 1–5 business days for funds to hit their savings account or checking account via direct deposit.

For those facing urgent medical care, this delay can be a serious barrier. Patients with weaker credit profiles also face high APRs (annual percentage rates) and origination fees, which makes repayment more challenging.

For Patients

Prosper loans shift responsibility entirely to the patient. Funds are deposited directly to borrowers, not healthcare providers upfront. This means practices cannot enroll patients at the point of care, and they may lose cases if patients don’t secure credit approval in time. From a business perspective, Prosper isn’t built for seamless healthcare financing: it operates as a general-purpose financial institution rather than a healthcare partner, leaving practices vulnerable to cancellations and delayed payments.

How CareCredit Works

CareCredit, issued by Synchrony, is the most widely recognized healthcare credit card in the U.S. Accepted by more than 270,000 healthcare providers, it covers a wide range of medical services including dental work, dermatology, cosmetic procedures, veterinary care, and wellness. Patients can prequalify through a soft credit check and, if approved after a full application process, receive a reusable line of credit with a credit limit of up to $25,000.

For Patients

CareCredit is convenient because it delivers instant access to funds and can be used repeatedly across multiple providers. Cardholders benefit from special financing and promotional financing — often 0% interest-free if balances are paid within 6–24 months — which can make healthcare costs feel more manageable.

However, the structure relies on deferred interest. If a patient misses even one payment or fails to clear the balance by the end of the promotional period, interest at a steep 32.99% APR is charged retroactively from the purchase date. This, on top of low minimum monthly payments, creates the risk of long-term medical debt, particularly for patients with bad credit or unpredictable medical bills.

For Providers

CareCredit offers brand recognition and wide acceptance, which can reassure patients considering large out-of-pocket procedures like plastic surgery financing. Providers are paid upfront when the card is used, improving cash flow.

However, the trade-offs include high merchant fees (starting at around 5.9%) and a lack of exclusivity — since patients can use their CareCredit credit card at any enrolled medical provider, there is no guarantee they will return to the same practice. Additionally, if patients end up facing high interest charges, it may damage trust in both the card and the practice that recommended it.

Prosper vs CareCredit: Side-by-Side Comparison

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Alternatives to Prosper and CareCredit

Cherry Financing

Cherry takes a different approach from traditional medical credit cards and personal loans. Instead of revolving debt or multi-day underwriting, Cherry offers buy now, pay later healthcare financing designed for point-of-care use. Patients can apply at home or in-office in under 60 seconds, with only a soft credit check, and receive instant credit approval decisions.

For Patients

Cherry means access to true interest-free payment options for qualified borrowers without the risk of deferred interest. With loan amounts up to $50,000 and terms up to 60 months, Cherry is suited for everything from dental work and cosmetic surgery to dermatology and pet care. Borrowers with a wide range of credit profiles — including those with bad credit — are more likely to be approved (80%+ approval rate), and repayment terms are clearly structured to avoid surprise charges.

For Providers

Cherry delivers upfront funding, the lowest merchant fees in the industry, and complete protection if a borrower defaults. Because funds are tied to the specific practice where the patient applies, Cherry strengthens loyalty and repeat treatment, aligning with health systems and independent clinics alike.

Takeaways – Cherry

• Flexible loan options with funding up to $50k and terms from 3-60 months
  
• Instant prequalification via soft credit check
  
• True 0% APR promotional financing, no deferred interest
  
• 80%+ approval rates across credit profiles
  
• Providers funded upfront, no default risk

Scratchpay

Scratchpay has carved out a niche in installment loans for healthcare, with strong adoption among veterinary practices and a growing presence in dental and mental health. Unlike revolving credit cards, Scratchpay focuses on single-use loans tied to specific procedures.

For Patients

Here’s how it works for patients: They begin with a soft credit check and can choose from multiple repayment plans, generally ranging from 12 to 36 months. Because Scratchpay caps funding at about $10,000, it works best for moderate costs like dermatology or routine dental care rather than high-ticket cosmetic surgery. While Scratchpay avoids revolving debt, certain promotional plans use deferred interest, which can increase costs if balances aren’t cleared in time.

For Providers

Practices benefit from the predictability of one-time loans and a simple digital enrollment process. However, Scratchpay’s higher merchant fees can weigh on margins, particularly for offices performing high volumes of financed procedures.

Takeaways – Scratchpay

• Procedure-based installment loans only
  
• Loan amounts capped at ~$10,000
  
• Flexible plan options, but some deferred interest terms
  
• Higher provider costs compared to BNPL competitors

Sunbit 

Sunbit originally built its brand in auto repair financing and later expanded into health-related services like vision care, dentistry, and pet care. Its technology is designed for fast approvals and accessibility.

For Patients

A core component of Sunbit’s service is that it approves a higher percentage of borrowers who aren’t creditworthy enough to be approved by traditional lenders. The process starts with a soft credit check and typically results in quick decisions, giving patients confidence they can move forward with treatment.

Loan sizes, however, are capped at $20,000, which can be limiting for major plastic surgery or extensive dental care. Some financing plans also rely on deferred interest, which adds risk if patients can’t pay balances in full during the promotional period.

For Providers

For healthcare providers, Sunbit integrates easily into checkout systems and offers a streamlined experience. But this convenience comes at a cost: merchant fees start around 4.7%, noticeably higher than Cherry’s, which can make a difference for practices with tight margins.

Takeaways – Sunbit

• Strong approval rates for lower credit scores
  
• Financing up to $20,000
  
• Certain offers include deferred interest terms
  
• Merchant fees higher than average

Affirm

Best known for retail checkout financing, Affirm has extended its services into healthcare and wellness, though its footprint remains smaller than CareCredit or Cherry. It operates on a transparent, fixed-term loan model.

For Patients

Borrowers can finance procedures with clear, upfront repayment schedules. Some loans are offered interest-free, while others carry APRs up to 30%. Terms run between 3 and 36 months, and funding caps out around $17,500, which can be restrictive for patients seeking plastic surgery or advanced dental work. Affirm’s straightforward application process and visible interest rates appeal to patients who want predictable repayment without hidden charges.

For Providers

Affirm is familiar to many consumers because of its e-commerce presence, which can help patients feel comfortable with using it for medical expenses. But high merchant fees — often 5.99% + $0.30 per transaction — make it one of the more expensive financing partners for practices.

Takeaways – Affirm

• Financing up to ~$17,500
  
• Transparent terms with some true 0% APR offers
  
• Widely recognized brand name
  
• Merchant fees among the highest in the industry

SoFi

SoFi began with student loan refinancing but has become a large-scale financial institution offering a wide range of products, including personal loans. While not healthcare-specific, patients often use SoFi loans to cover medical costs, consolidate medical debt, or refinance high-interest credit card balances.

For Patients

SoFi personal loans range up to $100,000, making them one of the largest funding sources available for healthcare expenses. With no origination fees, no prepayment penalties, and competitive APRs for those with strong credit history, SoFi appeals to borrowers with excellent credit profiles. However, SoFi isn’t designed for same-day medical financing. The application requires a hard credit check and full underwriting, which can delay access to funds.

For Providers

Since SoFi is not healthcare-specific, practices cannot integrate its financing directly at checkout. Providers may find it harder to track whether patients actually secure and allocate funds for their care.

Takeaways – SoFi

• Personal loans up to $100,000
  
• Loan terms up to 7 years for patients who want lower monthly payments
  
• No origination fees or prepayment penalties
  
• Low interest rates for strong credit scores
  
• Not tailored to healthcare provider workflows

PatientFi

PatientFi is a financing company designed for elective medical services, with a focus on areas like cosmetic surgery, dermatology, and fertility. Unlike medical credit cards, it provides procedure-specific loans.

For Patients

The model is simple: patients apply for a loan tied to a specific treatment, with clear start and end dates. They can prequalify through a soft credit check, but approval rates are significantly higher for patients with strong credit profiles than those with weaker credit. While this ensures predictable monthly payments, it also means fewer patients qualify compared to solutions like Cherry if they don’t have excellent credit.

For Providers

For practices, PatientFi offers easy integration into consultations and checkout processes, making it simple to present financing during treatment planning. However, high merchant fees and data-sharing practices with credit unions may raise concerns for providers seeking more control over patient financing.

Takeaways – PatientFi

• Fixed-term loans tied to individual procedures
  
• Predictable repayment schedules
  
• Narrow eligibility: Lower approval rates for weaker credit profiles
  
• Higher merchant fees and data-sharing model

CareCredit, Prosper, or an Alternative Funding Partner?

Both Prosper and CareCredit give patients tools to spread medical costs into monthly payments, but both can fall short for different reasons. Prosper’s personal loans offer higher funding amounts but require lengthy application processes and delay treatment. CareCredit provides instant credit approval and wide acceptance among healthcare providers but relies on deferred interest that can leave patients trapped in medical debt.

For providers, neither solution fully addresses business needs: Prosper doesn’t fund practices upfront, and CareCredit comes with steep merchant fees and reputational risks if patients face high interest surprises.

That’s why more than 40,000 providers now use Cherry. With a streamlined application process, instant credit approval, true interest-free financing, and upfront payments to providers, Cherry is reshaping healthcare financing. By eliminating deferred interest and reducing provider risk, Cherry helps patients move forward with medical procedures while protecting practice revenue.

Read our testimonials to see why Cherry is the trusted choice for healthcare financing across dental work, dermatology, cosmetic surgery, pet care, and wellness. And claim your complimentary demo to discover how flexible payment plans could transform your practice.