Why You Shouldn’t Get a Medical Credit Card
Medical credit cards are lines of credit designed to pay for medical expense such as surgery or medications. Many medical credit cards come with a low introductory rate of zero percent but after a few months can balloon to an interest rate as high as 30 percent. There is big business in medicine and in debt and it seems that the medical industry and the banks that fund them are joining forces to pile even more debt onto struggling Americans.
That’s not to say that your doctor is personally trying to put you in debt; but the medical credit cards offered to debtors are more beneficial to corporations than to the patient.
Let’s take a look at a few reasons why you should NEVER get a medical credit card:
Medical credit cards will immediately charge interest on your medical debt after the grace period has passed. Patients who don’t pay for services with a medical credit card avoid interest rates as long as they don’t go to collections.
Credit Report Damage
It doesn’t take long for you to miss a few payments on your medical credit card and end up with a ding on your credit report. A medical credit card is still a line of card and failure to pay on time will hurt your FICO score. If a debtor fails to pay medical debt not charged to credit card, it isn’t likely to be reported to the credit bureaus until after it goes to collections. At the slow rate at which hospital billing departments operate that could take months.
Medical debt is dischargeable in bankruptcy, plain and simple. However, medical debt charged to a credit card could offer some complications during bankruptcy. Some credit card issuers might argue that you never intended to pay the medical debt, especially if you charged medical procedures or medicine to your credit card after becoming insolvent.