A study has shown that at least one in three adults lacks any form of dental benefit coverage. This is according to the American Dental Association, and it means that so many Americans will have to figure out other ways of paying for their dental care. Dental procedures however, can be quite costly for an average American adult.
In fact, people who have dental coverage may still are still very likely to incur about half or the total cost of cosmetic processes. But you can leverage on dental expenses as a way of financing dental expenses that may not be included in your insurance.
Dental Credit Cards Are Credit Products
Dental credit cards are credit products, so to qualify for one, you will have to have your credit checked. And this procedure involves the credit card issuer, and not done at the dentist office.
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When you apply for one, the credit card issuer will review your credit history to see if there are high balances or delinquencies. People with poor credit scores will not be eligible. And if you are denied, you may have to look for alternative means of financing your dental credit expenditures.
One of the major credit bureaus will likely have the report of your account history, which would also be included in your credit report. In essence, your account payment history and account usage will affect your credit score.
Dental Credit Cards Work Like Store Credit Cards
Dental credit cards have restrictions in usage. They are often permitted for use on dental expenses and only when the office welcomes dental credit cards as one of their payment methods.
There are occasions where you’ll only be allowed to use your dental credit cards for some certain dental offices or for some specific dental expenses. At the dental office, instead of making your payment directly, you’ll be required to send it to the credit card issuer. You may also be permitted to pay online, over the phone, or mail payments.
Deferred Interest Promotions Could End up Costing
Most dental credit cards do not offer interest on promotions, especially when you pay off outstanding before the end of the promotional period. But if there is any balance you have left after the promotion elapses, the accrued interest will be included in your account. The huge interest accrued dates back to your first balance charged on your credit card.
It is always advised that you try to avoid interest payments on a dental credit card as APR on it can be so high, and increase your dental care costs so much. To avoid interests on your dental credit cards, ensure to clear out balance during the promotional period. Do not miss your payments. Having a late payment could result in you losing your deferred interest promotion earlier than scheduled. Talk to your card issuer about the final payment date of your credit card to sideline potential interest.
Repayment periods vary from card to card. It often range from between 6 to 36 months, or even more. The credit cards have fixed amount that required that your balance is settled before or by the end for the provided period.
Things To Consider When Choosing a Dental Credit Card
Terms and pricing. Do not be too hasty with your dental credit card decision that you’ll overlook the pricing and terms provided on it. it is crucial that you understand everything involved in the interest promotion. This should include the time frame for settling your balance and avoiding any interest being accrued, and causing reactions that can lead to the promotional period prematurely.
Observe the APR closely too. The APR is the interest rate applied to your balance. If there are no special interest promotions, you’ll specifically need the APR in your decision. Go through the fine print accompanied with the dental credit card to understand everything you are putting in for. Also endeavor to ask for the credit card disclosure from the dental office even when the information is not voluntarily offered.
Dental Credit Card Alternative
There are different types of credit cards, but to avoid dental credit card repayment issues, you may consider walking into your dental office to help finance your dental procedures. For instance, you may be able to prepay dental services in installments. And once you complete the payment, you can go on to schedule for the dental procedure. This will help you avoid creating a new credit card balance that you must repay.
In any case, if you are not offered payment plans by your dental office, you can consider using a major credit card. Consider the one with a low interest rate and has no balance. You can repay your balance with no accrued interest when you shop for around for a zero interest promotion. You will not experience recurrent interest rates like dental credit cards with deferred finances.
Another option may be to take out a home equity loan or to consider a home equity line of credit. But it is important to note that you are using your home as a way of financing your dental expenses. Meaning that your home may be gone if you default on repaying your equity loan. For anything, make this option the last to think of.
