Medical credit cards are a good option for services that are not covered under your insurance. If your insurance provider does not cover certain costs, you can use the medical credit card for the same. Here are certain points you need to consider before you apply for a medical credit card.

The card has limited use
Medical credit cards are not the same as any other credit cards. They have limited use and can only cover for medical services when the service provider accepts the card. There are certain cards that can only be used for certain services; you will not be able to use them for other purchases.

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It affects your credit score
The card is like any other credit card when it comes to your credit score. It will require a credit check and will have an impact on your credit score. When you make an application, your credit report will be reviewed, and the card could be denied if you do not meet the application requirements. If the application is approved, the account details will be reported to the credit bureaus, and it will be a part of your credit score.

The credit cards have deferred interest
Various medical cards offer a 0% interest for a specific duration. This is not a zero-percent interest deal, but a deferred interest deal. With this promotion, you have to pay the full balance before the end of the period. If you fail to do so, you will have to pay an interest on the amount from the initial transaction. On the basis of the balance, you could end up paying a substantial amount of money. Even if you miss a single payment, you will lose the promotional interest rate and will have to pay a late payment fee. You need to understand what you are signing up for.

It is not the only option
Keep in mind that medical credit card is not the only option you have. You need to consider it very carefully like you would choose any other credit card. It comes with its own features, but if you have insurance that covers for majority of your medical expenses, you should give medical credit card a miss.

It is important to read and understand the fine print before you sign up for a medical credit card. Understand what the credit card company has to offer before you agree to their terms. Weigh your options and make a decision. There is nothing wrong with using a medical credit card, but you need to understand the zero-interest option. Do not be tempted to apply for a credit card when you do not need it.

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