Medical Credit Cards: Should You Apply?

If your health insurance does not cover all the costs of an upcoming appointment or procedure, a medical credit card can help you pay for the visit. But such a card is not always the best option. Here's what you need to know about using a medical credit card to pay for health care.

What Is a Medical Credit Card?

A medical credit card is designed to pay for medical expenses. Health care providers that might offer these cards include:

-- Dentists

-- Eye doctors

-- Audiologists

-- Cosmetic surgeons

-- Veterinarians

Typically, you can apply for a medical credit card at a doctor's office. Alternatively, you can apply for a credit card before your visit and verify whether it's accepted by your health care provider, according to J.R. Duren, a personal finance reporter for consumer product research website HighYa.

Medical cards might not cover every medical expense. Issuers typically have specific services you can pay for with the card, such as LASIK, dental care or cosmetic surgery.

Interest charges on medical credit cards typically are deferred. That means if you pay off your balance within a specified time frame, you will not be charged interest.

But be cautious of deferred interest promotions: If you fail to pay off the debt before the period of deferred interest ends or if you are more than 60 days late on a payment, you may have to pay all the interest that has built up since your original charge.

"Say you get 18 months of 0% interest for a $5,000 procedure," Duren says. "If you don't pay off the full $5,000 by the end of the 0% period, you'll have to pay interest (retroactively) on the entire original amount."

[Read: Best Balance Transfer Credit Cards.]

What Is the Best Medical Credit Card?

Choosing the best medical credit card depends on your needs and circumstances.

There aren't many medical cards available, but these three can be used to pay medical expenses:

CareCredit . This card is available to cover health and wellness services from more than 200,000 providers, including cosmetic surgeons, dentists and primary care physicians. The CareCredit credit card typically comes with a 26.99% variable annual percentage rate and offers deferred interest for six, 12, 18 or 24 months.

If you charge $1,000 or more on this card, you may be able to instead opt for a 14.9% APR for 24 months. Different rates may apply for other term lengths and amounts charged.

Wells Fargo Health Advantage Card . This medical credit card covers dental, hearing, vision and veterinary services and has an APR of 12.99% on all purchases.

AccessOne. The interest rate and other options on the AccessOne vary by health care provider. A 0% interest rate plan is available. This card can be used to pay for a variety of general procedures.

[Read: Best Low-Interest Credit Cards.]

Is a Medical Credit Card Better Than Traditional Credit Cards?

Although both medical credit cards and traditional credit cards allow you to charge health care expenses, medical credit cards come with more restrictions. You're only able to pay for certain qualifying medical expenses with a medical card and only when the hospital or service provider accepts that particular method of payment.

Traditional credit cards with a 0% APR shouldn't be confused with deferred-interest medical credit cards. With a traditional credit card, you won't accrue any interest during the promotional period, as long as you make minimum payments on time.

Duren says medical credit cards are most comparable to retail store credit cards due to their limited application, typically higher interest rates and deferred interest offers.

Medical credit cards and traditional credit cards do have one thing in common: They both affect your credit. Medical credit cards typically require a credit check, and you can be denied if your credit score or other factors don't meet the issuer's requirements.

Payment activity on a medical card is also usually reported to at least one of the credit bureaus. Although positive payment activity isn't always reported, missing payments will negatively impact your credit score.

Should You Use a Medical Credit Card?

Paying for a medical procedure with a credit card can result in costly interest fees if you don't pay off the card right away.

"If you insist on charging medical procedures, you're better off just using a general-use credit card," says John Ulzheimer, a credit expert who has worked at credit bureau Equifax and credit analytics company FICO. "The APR is likely going to be much lower."

Whether you should pay for your medical expenses using a medical card depends on the choices you have. A medical credit card can be a good option if you can get a 0% APR offer and you're sure you can pay off the balance within the promotional period.

But it's not necessarily the best option. Credit cards or loans that offer a lower APR and no risk of deferred interest may be a more financially prudent choice.

Consider these alternatives to medical credit cards before you sign up:

Traditional credit cards that offer a 0% interest rate. Traditional credit cards with 0% interest offers typically don't have deferred interest. That means when the promotional period is over, you won't have to pay interest on the full amount, only any balance that remains.

[Read: Best 0% APR Credit Cards.]

Personal loan. Personal loans may offer lower interest rates than credit cards and have a specified term, so you know how long it will take you to pay the balance.

Payment plan. If you have poor credit, you may not qualify for a traditional credit card or loan. In that case, you might want to work out a payment plan with your medical provider.

In fact, if your medical provider offers an interest-free payment plan, it might be the best option, regardless of what shape your credit is in. "Always ask your doctor's office, hospital or surgery center if they offer payment plans," Duren says.

Casey Bond is a seasoned personal finance writer and editor. Her work has appeared in a number of major national publications including U.S. News & World Report, Yahoo Finance, MSN, The Huffington Post, Business Insider, Forbes and others. Follow her on Twitter @CaseyLynnBond.