4 Min Read | November 17, 2022
Should I Pay for Dental Care with a Credit Card?
Even if you have dental insurance, you can still face out-of-pocket costs. Paying for dental care with a credit card can help, but it’s not always the best idea.
At-A-Glance
Most Americans aren’t eligible for dental insurance through their workplace.
Those who do have dental insurance may have low annual limits that won’t fully cover the cost of many procedures.
Paying out of pocket for care can be tough on your budget, as many dental procedures can cost $1,000 or more.
Using a credit card for dental work can be a smart move, as long as you don’t end up with a large balance that incurs high interest rate charges.
Dental care can take a painful bite out of your cash flow. Less than half of workers are eligible for dental insurance through work.1 And, even if you have dental coverage, you still might find yourself paying out of pocket for major work. For example, if your annual maximum coverage limit is $1,500 and you need a $2,000 crown, you’d still be on the hook for $500.
Given that some procedures can run into four digits (or more) – even for just one tooth – using a credit card to pay for dental work is an option to consider.
Here’s how to decide if using a credit card for dental care is the right move.
When It Can Make Sense to Use a Credit Card for Dental Work
Credit cards can be an effective solution to cover dental costs, but only if it won’t put you into debt. Here are three examples where it might make sense to use a credit card:
- You can pay off your card balance in full. If you have the funds to pay off the entire amount when it hits your credit card statement, a credit card can work just fine – especially if you will earn reward points. Just be sure you can cover the bill, as carrying a balance can come at the expense of high interest charges. Tip: Out-of-pocket dental costs are a great reason to work on building an emergency savings fund. You can use your credit card to pay for dental work, and then, if needed, you can transfer money from your emergency stash to your checking account so you can cover the credit card bill in full.
- You qualify for a 0% intro APR credit card. If you have or can qualify for a 0% intro APR credit card, it may make sense to use it for any dental bills you can’t pay back immediately. Be sure to pay off your entire balance before the end of the promotional period, which is usually 12 to 15 months. A similar option is to pay for your dental work with an existing credit card and then transfer the balance to a new card that has a 0% intro APR and no balance transfer fees.
When Using a Credit Card for Dental Care Might Not Be Your Best Option
Credit cards can be a useful tool, but they’re not always the best payment method. Here are three alternative situations to consider.
- Your dentist offers a better deal for cash. When you use a credit card, your dental office might pass along its credit processing fee – a surcharge that can add up, especially for high-cost dental work. That same dentist might offer you a discount if you pay with cash, so it’s worth asking about. This is yet another reason to double down on building a solid emergency savings fund.
- Your dentist offers a financing plan. Dentists are well aware that many patients don’t have insurance and that the cost of care can be a budget buster. It pays to ask if there’s an option to spread your payment over a few months. If the financing terms make cash payment doable, this option might be a better deal than using a credit card with a high APR.
- You can qualify for a personal bank loan or dental loan at a lower APR. Most banks and online lenders offer unsecured personal loans that don’t require collateral. The interest rate can depend on factors such as how much you need to borrow and your credit score. With a solid credit score, you may be able to take out a personal loan that allows you to pay back the dental work over time, with a lower interest rate than that of a credit card. But if the loan has a high interest rate or high origination fees, it may not be worth it.
The Takeaway
Even if you have dental insurance, it’s common to run into out-of-pocket costs that can be at least a few thousand dollars. Using a credit card to pay for dental care can work out well, as long as you have a plan for paying off the credit card bill without running up stiff interest rate charges. Otherwise, check to see if your dentist offers cash discounts or financing plans.
1 “National Compensation Survey: Employee Benefits in the United States,” Bureau of Labor Statistics
Carla Fried is a freelance journalist who has spent her entire career specializing in personal finance. Her work has appeared in The New York Times, Money, CNBC.com, and Consumer Reports, among many other media outlets.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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