Using Medical Credit to Pay for Therapy
What is a Health Loan / Credit ?
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Some lenders extend loans and/or credit for the specific purposes of paying for medical expenses.
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The client applies for the line of credit directly with the lender (in this case, CareCredit) and if accepted, uses their CareCredit card to pay for therapy sessions.
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The terms of your line of credit are outlined at the beginning.
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As with other credit cards, there is a maximum balance amount you can carry.
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What is unique is that you can get a 0% APR period of 12 months on each qualifying transaction. Meaning that you can potentially extend payments longer (with no interest or fees).
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However, similar to most credit cards, if you do not make payments on time or per the conditions of your agreement, there can be fees and interest.
Benefits
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Paying smaller amounts regularly over an extended period can make therapy more affordable for some.​
Drawbacks
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If you do not make minimum payment amounts, you can end up paying additional fees or interest.
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Could potentially create stress in the future if a client defers payment for the entire 0% APR period with no way to pay the balance due at that time.
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Typically there is a very high APR/interest rate at the end of the 0% APR/interest period. Meaning that you could quickly accrue a very high additional balance, if you have not adequately planned out how to pay the balance by the loan period.
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This option is not recommended or optimal for those who have a problematic history of managing timely payments, handling debt wisely, or who are seeking therapy specifically related to financial spending/management issues.