Even with health insurance, patients are paying more out-of-pocket medical costs than ever. High deductibles, exclusions for elective treatments, and limited coverage for essentials like dental work, dermatology, or pet care leave patients scrambling to cover medical expenses.

For practices, this financial strain can mean stalled treatment acceptance and delayed revenue. Offering accessible payment options is no longer optional — it’s part of the modern patient experience. Two names often come up in this space: the CareCredit credit card, issued by Synchrony Bank, and United Medical Credit (often shortened to United Credit). Here’s how they compare for both patients and practices.

CareCredit: A Familiar Name in Medical Credit Cards

CareCredit has been around for decades, building one of the largest networks of healthcare providers in the country. Patients can use it for everything from plastic surgery and cosmetic procedures to dental care, dermatology, and even wellness services.

• How it works: Patients can prequalify online with a soft credit check (which does not hurt credit score), but completing the application process requires a hard inquiry that shows up on their credit report. Approved cardholders receive a reusable line of credit, with limits that can reach $25,000.
  
• Special financing: CareCredit advertises interest-free promotional financing options (6–24 months). But there’s a catch — these rely on deferred interest. That means interest can be charged retroactively from the purchase date at a steep 32.99% APR if one payment is late during the promotional period, or there’s an outstanding balance by the end of that period.
  
• Payment structure: Patients make monthly payments on a revolving line of credit. Like other credit card companies, CareCredit has a minimum monthly payment requirement, but there’s no annual fee to remain a cardholder.
  
• For practices: CareCredit delivers brand recognition, a large pool of cardholders, and upfront payment at checkout. But approvals lean toward stronger credit profiles, and merchant fees are higher than some modern competitors.

Bottom line: CareCredit is convenient and widely accepted, but the deferred interest model can easily tip patients into high-interest medical debt.

United Credit: A Marketplace for Medical Loans

Unlike CareCredit, United Credit doesn’t issue its own card or loan. Instead, it functions as a digital banking platform that connects patients to a network of financial institutions and lenders. Think of it as a matchmaking service between patients and medical loans.

• How it works: Once patients enroll in United Credit’s service, they can submit an online application to be shared with the company’s network of banks and credit unions. This typically first involves a soft credit check for prequalification followed by a hard credit check for the full application. United Credit allows patients to compare multiple offers without applying separately — minimizing harm to their credit score.
  
• Loan amounts and payment terms: Borrowers can qualify for loans of $1,000 to $35,000+ with fixed repayment periods ranging from 6 to 72 months. Payments are predictable and structured, making them easier to budget than revolving lines of credit.
  
• Loan Rates: Varies by lender and creditworthiness. Uniter Credit’s marketplace serves borrowers from a variety of backgrounds. However, if you have an adverse credit history, you may face high interest rates.
  
• Funding timeline: Unlike CareCredit’s instant approval and funding, United Credit can take up to a day to approve applicants, and then another 1-2 business days to disburse funds to the borrower’s bank account.
  
• For practices: United Credit can cover high-ticket medical procedures that CareCredit might not, like full cosmetic surgery financing or advanced dental implant cases. But it doesn’t deliver the same instant “yes” at the point of care.

Bottom line: United Credit opens the door to larger loans and structured personal loans, but slower funding and stricter eligibility can make it less seamless for same-day treatment acceptance.

CareCredit vs United Credit: Quick Comparison

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Alternatives to United Credit and CareCredit

United Credit and CareCredit may be two of the most recognizable names in healthcare financing, but they’re far from the only ways to help patients manage medical bills. Medical providers today have access to newer solutions that emphasize transparency, faster approvals, and more favorable terms. Here’s how some of the most common alternatives stack up.

Cherry

Cherry, a buy now, pay later (BNPL) platform built for healthcare, offers point-of-care financing that prioritizes speed, transparency, and competitive rates. Its platform lets patients apply in just 60 seconds with a soft credit check, receive an instant decision, and walk away with a clear payment plan that meets their needs.

Unlike CareCredit’s deferred interest promotions or United Credit’s multi-day loan processing, Cherry keeps things simple with true 0% APR for qualified borrowers. There are no hidden fees or deferred interest charges, and practices benefit from upfront payment and the lowest merchant fees in the industry.

With funding limits as high as $50,000 and terms as long as 60 months, Cherry can comfortably handle cosmetic surgery, orthodontics, and other high-ticket procedures while keeping approvals exclusive to your office.

Key Takeaways – Cherry

• 60-second application with soft credit check and instant decision
  
• 80%+ approval rate across all credit profiles
  
• True 0% APR for qualified borrowers, no deferred interest charges
  
• Loan amounts up to $50,000 and terms as long as 60 months for larger healthcare expenses
  
• Available at 40,000 participating providers in plastic surgery, medical aesthetics, dentistry, veterinary, and dermatology
  
• Lowest merchant fees in the industry, with upfront payment to providers
  
• Exclusive approvals tied to the practice, reinforcing patient loyalty and enhancing cash flow

Affirm

Many patients are already familiar with Affirm from shopping online, which makes it easier to introduce in a healthcare setting. Its appeal is transparency: patients know their monthly payment, term length, and interest rate before committing. That clarity can boost trust, particularly when compared to credit cards with deferred interest.

Still, Affirm’s ceiling of around $17,500 makes it less practical for full plastic surgery financing or complex dental procedures. Practices also face above-average provider fees, which can cut into margins even if patients are more likely to say yes to treatment.

Key Takeaways – Affirm

• Well-known BNPL option with strong consumer recognition
  
• Clear repayment terms with no hidden fees
  
• Some plans offer interest-free financing; APRs can reach 30%
  
• Loan amounts capped at $17,500, suitable for small to mid-range treatments
  
• Merchant fees (about 5.99% + $0.30) are steep compared to healthcare-first solutions

Sunbit

For practices that frequently serve patients with bad credit, Sunbit has become a go-to financing solution. Approval rates are high, the application process is quick, and it only requires a soft credit check. If approved, patients make a down payment and then spread the rest across fixed installments.

The trade-off is that loan amounts don’t exceed $20,000, which limits Sunbit’s usefulness for more expensive cosmetic or surgical procedures. On top of that, some offers rely on deferred interest, and merchant fees sit above other BNPL competitors.

Key Takeaways – Sunbit

• High approval rates, especially for patients with lower credit scores
  
• Soft credit check with quick, point-of-care application
  
• Funding up to $20,000, better suited for low-cost medical services like liposuction or LASIK
  
• Some offers include deferred interest
  
• Merchant fees start at 4.7%
  

Klarna

Klarna has amassed a global audience of merchants and consumers in retail, and now it’s stepping into healthcare. Patients can apply at checkout, get an approval decision, and manage their payments through Klarna’s popular mobile app.

The most appealing feature is flexibility: short-term interest-free options like pay-in-4 or pay-in-30 make small wellness visits or dental checkups more manageable, while longer-term loans are available with varying APRs.

That said, initial credit limits are usually modest, so Klarna isn’t designed for high-cost surgeries. Practices also pay higher merchant fees compared to financing partners built for medical care.

Key Takeaways – Klarna

• Global BNPL platform with broad consumer reach
  
• Flexible repayment options: pay-in-4, pay-in-30, or longer loans
  
• Interest-free short-term options available
  
• Lower loan limits make it best for smaller procedures not covered by health plans
  
• Merchant fees on the higher side for providers

Personal Loans (SoFi, Prosper, LendingClub, etc.)

Online lenders like SoFi, Prosper, and LendingClub are known for student loans, peer-to-peer loans, and personal loans that can be used to refinance debt, invest in real estate, and even cover healthcare costs.

Personal loans for elective procedures are especially valuable to patients with strong credit histories who want to borrow large amounts. Loan sizes can stretch to $100,000 with terms as long as seven years, making them suitable for major surgeries or bundled treatments.

The downside is convenience: patients must complete a full underwriting process, including a hard credit check and income verification, and then wait several business days for a direct deposit.

This means practices don’t get paid upfront, and there are no interest-free promotions — so while these loans cover big-ticket items, they don’t offer the seamless checkout experience patients expect today.

What’s more, longer terms and higher loan amounts generally mean the borrower will pay more in interest over the life of the loan — even if their monthly payments are lower.

Key Takeaways – Personal Loans

• Large loan amounts available ($1,000–$100,000)
  
• Long repayment terms up to 84 months
  
• Low-interest loans available to only the most creditworthy borrowers
  
• Full underwriting required, with hard credit check and verification
  
• No upfront provider payments; funds go directly to the patient
  
• Some personal loans may charge prepayment penalties, origination fees, penalties for late payment, and other administrative fees

Scratchpay

Scratchpay began in the veterinary space, and though vet care is still its specialty, the company has expanded into human healthcare to help patients cover lower-cost, one-time treatments.

Scratchpay’s application is quick, with only a soft credit check required — and while approval rate is low, they give patients access to a handful of simple installment plans. Some of these plans advertise interest-free terms, though they rely on deferred interest.

With loan amounts capped at about $10,000 and terms that don’t exceed 36 months, Scratchpay is better suited for wellness visits, preventive care, or moderate dental work rather than high-cost procedures. For practices, higher merchant fees compared to other healthcare financing solutions are a key drawback, especially for larger cases.

Key Takeaways – Scratchpay

• Simple application process with soft credit check; lower approval rates
  
• Loan amounts capped at $10,000 and terms at 36 months, limiting high-ticket procedures
  
• Some plans still rely on deferred interest promotions
  
• Merchant fees are higher than competitors — 5% per transaction for vet, 7% for dental/vision/medical care
  

Final Thoughts: Choosing Between United Credit and CareCredit

Both CareCredit and United Credit give patients pathways to finance healthcare expenses that aren’t fully covered by their insurance company or Medicaid. CareCredit offers instant access through a reusable medical credit card, but it offers deferred interest promotions and smaller funding limits. United Credit helps patients secure larger medical loans with defined repayment terms, but credit approvals and funding take longer.

For practices, neither solution is perfect. That’s why many are looking at alternatives like Cherry, which combine instant approvals, true qualifying 0% APR financing, upfront payment to practices, and the lowest merchant fees in the industry. With more than 40,000 healthcare providers enrolled — from dental offices to cosmetic surgery clinics and medspas — Cherry has become a trusted choice for practices that want to increase treatment acceptance and enhance patient well-being.

Learn more about how to offer Cherry Payment Plans at your practice. Claim your complimentary demo here.