CareCredit Card Review 2025: Rates, Fees, Alternatives & How It Work -

Medical expenses continue to burden American households, with unexpected healthcare costs creating significant financial strain. According to the Federal Reserve’s 2024 Report on the Economic Well-Being of U.S. Households, 23% of adults faced major unexpected medical expenses in the prior year, with median costs ranging between $1,000 and $1,999. Consequently, many consumers turn to medical financing solutions like the CareCredit card to manage these expenses

What Is the CareCredit Card?

CareCredit, issued by Synchrony Bank, is a healthcare credit card designed specifically for financing medical, dental, veterinary, and wellness expenses not covered by insurance. The card operates within a network of over 285,000 enrolled healthcare providers across the United States, making it one of the most widely accepted medical financing options available.

Two Card Versions: Understanding Your Options

CareCredit offers two distinct card versions, each serving different needs:

1. CareCredit Credit Card (Closed-Loop)

Accepted only at enrolled providers within the CareCredit network
No annual fee
Available for applicants with fair to good credit
Offers promotional financing at participating locations
Cannot be used for everyday purchases outside the healthcare network

2. CareCredit Rewards Mastercard (Open-Loop)

Functions as a traditional Mastercard accepted anywhere Mastercard is processed
No annual fee
Requires good to excellent credit for approval
Earns rewards points on purchases
Includes all benefits of the standard CareCredit card plus expanded usability

Rewards Structure (through December 31, 2026):

4 points per $1 on CareCredit network purchases under $200, health/wellness purchases, and pet stores
3 points per $1 at grocery stores and restaurants
2 points per $1 on all other purchases
Redemption requires minimum 1,000 points (valued at 1 cent each) for statement credits, travel, gift cards, or merchandise

Application Process and Card Assignment

Your application method significantly impacts which card version you may receive:

Online Applications:

Automatically considered for CareCredit Rewards Mastercard first
If declined for Mastercard, automatically reviewed for standard CareCredit card
Instant decision in most cases
Immediate account number availability upon approval

Phone Applications:

Only eligible for standard CareCredit card
Cannot receive CareCredit Rewards Mastercard through phone application
Speak with live representatives Monday-Friday, 9 AM-9 PM ET
Call (800) 677-0718 to apply

Where Can You Use CareCredit?

Understanding where CareCredit is accepted ensures you maximize the card’s utility while avoiding surprises at checkout.

Healthcare Provider Categories

CareCredit acceptance spans numerous healthcare specialties:

Medical Services:

Primary care physicians and specialists
Hospitals and surgical centers
Medical imaging facilities and laboratory services
Physical therapy and rehabilitation centers
Chiropractic care
Medical equipment suppliers and pharmacies

Dental Care:

General dentistry
Orthodontics
Cosmetic dentistry
Periodontics and endodontics
Oral surgery

Vision Care:

Optometrists and ophthalmologists
LASIK and corrective eye surgery
Eyewear retailers

Specialized Services:

Dermatology and cosmetic surgery
Audiology and hearing aids
Veterinary services (routine and emergency care)
Mental health services
Alternative medicine practitioners

End-of-Life Services:

Funeral homes
Cremation services
Burial services

Retail Partners

Beyond healthcare providers, CareCredit is accepted at select retail locations:

Walgreens – Health, wellness, and personal care items
Rite Aid – Pharmacy and health products
Walmart – Health, wellness, and personal care sections
Sam’s Club – Health and wellness products

Important Note: To locate specific providers accepting CareCredit in your area, use the official provider locator tool on CareCredit’s website. Promotional financing availability varies by provider, so confirm terms before receiving services.

Understanding CareCredit’s Promotional Financing Options

CareCredit’s primary appeal lies in its promotional financing offers, which can provide valuable breathing room when facing substantial medical expenses. However, understanding the nuances of these options is crucial to avoiding costly mistakes.

Deferred Interest Financing (No Interest If Paid in Full)

Eligibility:

Purchases of $200 or more
Only available at enrolled CareCredit network providers
Terms: 6, 12, 18, or 24 months

How It Works: This promotional option advertises “no interest if paid in full” within the specified timeframe. However, this is deferred interest financing, not a true 0% APR offer—a critical distinction that many consumers misunderstand.

Key Characteristics:

Interest Accrues From Day One: Interest accumulates on your full balance from the purchase date at the card’s standard APR (currently 32.99%)
Conditional Forgiveness: If you pay the entire balance before the promotional period ends, all accrued interest is forgiven
Retroactive Interest Charges: If even one penny remains unpaid when the promotional period expires, you’re charged the full amount of interest that accrued from day one—not just on the remaining balance

Example Scenario: Imagine you finance a $2,000 dental procedure with 12-month deferred interest financing:

You diligently pay $165 per month for 11 months, reducing your balance to $185
Month 12 arrives, but you can only pay $150, leaving $35 unpaid
Result: You’re charged approximately $660 in retroactive interest (32.99% on $2,000 for 12 months), plus the standard APR continues on the remaining balance

This retroactive interest penalty makes deferred interest promotions significantly riskier than true 0% APR offers. To understand exactly how this interest calculation works, read our detailed guide on how to calculate APR on a credit card.

Reduced APR Financing with Fixed Monthly Payments

Eligibility:

Purchases of $1,000 or more
Available terms: 24, 36, 48, or 60 months
Specific terms depend on purchase amount

Current Rate Structure:

$1,000+ purchases: 24 months at 17.90% APR, 36 months at 18.90% APR, or 48 months at 19.90% APR
$2,500+ purchases: Also eligible for 60 months at 20.90% APR

How It Works: Unlike deferred interest financing, this option charges interest from the start at the specified reduced rate. You make fixed monthly payments until the balance is paid in full.

Example Calculation: For a $1,000 purchase:

24 months at 17.90% APR = approximately $50/month
36 months at 18.90% APR = approximately $36/month
48 months at 19.90% APR = approximately $31/month

While these rates are lower than the standard 32.99% APR, they’re still considerably higher than the average credit card APR of 22.25% reported by the Federal Reserve as of May 2025.

Standard Account Terms

For purchases under $200 or non-promotional purchases:

Standard APR: 32.99%
Penalty APR: 39.99% (triggered by late or returned payments)
Minimum interest charge: $2
Foreign transaction fee: 3% (CareCredit Rewards Mastercard only)
Cash advance APR: 32.99% with 4% fee ($10 minimum)
Balance transfer APR: 32.99% with 5% fee ($5 minimum)

Understanding these rates is crucial. As detailed in our comprehensive APR calculation guide, a 32.99% APR translates to a daily periodic rate of 0.0904%, which compounds rapidly on outstanding balances.

The Deferred Interest Trap: Why CareCredit Can Be Dangerous

The most significant risk with CareCredit stems from its deferred interest structure. Unlike genuine 0% APR promotional offers found on traditional credit cards, deferred interest can result in massive, unexpected charges.

Understanding the Difference: Deferred Interest vs. True 0% APR

Deferred Interest (CareCredit’s Model):

Interest accumulates throughout the promotional period
Interest is forgiven only if you pay the full balance on time
Missing the deadline by even one day triggers all accumulated interest
Charges apply retroactively to the original purchase amount, regardless of how much you’ve paid

True 0% APR (Standard Credit Cards):

No interest accumulates during the promotional period
If a balance remains after the promotion, interest applies only to that remaining amount
Interest charged only going forward, not retroactively
Significantly more forgiving if you can’t pay everything on time

The Real Cost of CareCredit’s High APR

At 32.99% APR, CareCredit’s standard rate is substantially higher than most credit cards. To illustrate the true impact, let’s examine what this means in practical terms:

Daily Interest Accumulation: Using the APR calculation method, CareCredit’s 32.99% APR converts to a daily periodic rate of approximately 0.0904% (32.99 ÷ 365).

Monthly Interest Example: For a $5,000 balance over a 30-day billing cycle:

Daily interest rate: 0.0904%
Daily interest charge: $5,000 × 0.0904% = $4.52
Monthly interest: $4.52 × 30 days = $135.60

This means you’d pay over $1,620 in annual interest charges on a $5,000 balance—equivalent to nearly one-third of your original balance.

Real-World Impact

According to the Consumer Financial Protection Bureau, deferred interest promotions consistently result in consumers paying substantially more than anticipated. Many cardholders fail to pay off balances in time, triggering retroactive interest charges that can equal or exceed the original purchase price for larger balances.

Penalty APR: Adding Insult to Injury

CareCredit’s 39.99% penalty APR compounds the problem. This punitive rate applies if you:

Make a late payment
Have a payment returned for insufficient funds
Otherwise violate the card agreement terms

Crucially, once triggered, the penalty APR may remain in effect indefinitely—there’s no guaranteed return to the standard rate, even if you resume timely payments.

Penalty APR Impact: At 39.99% APR, your daily periodic rate jumps to 0.1096%. On that same $5,000 balance:

Daily interest charge increases to $5.48
Monthly interest rises to $164.40
Annual interest balloons to $1,972.80

This represents a 21.7% increase in interest costs simply for missing one payment.

Who Should Consider CareCredit?

Despite its risks, CareCredit can be appropriate for specific situations and borrower profiles.

Ideal Candidates

1. Disciplined Borrowers with Predictable Income If you have consistent income and excellent payment discipline, CareCredit’s promotional financing can work in your favor. However, you must:

Calculate exact monthly payment amounts needed to pay off the balance before the promotional period ends
Set up automatic payments or calendar reminders
Build in a safety buffer (aim to pay off the balance 1-2 months early)
Have an emergency fund to cover final payments if unexpected expenses arise

Understanding how compound interest works is essential—our guide on calculating credit card APR explains why even small remaining balances can trigger substantial charges.

2. Emergency Healthcare Situations When facing immediate, unavoidable medical expenses without alternative financing options, CareCredit provides instant access to credit. The instant approval feature allows you to apply from the doctor’s office and use the account number immediately, even before receiving your physical card.

3. Specialty Care Not Covered by Insurance For elective procedures not covered by insurance—such as cosmetic surgery, LASIK, orthodontics, or fertility treatments—CareCredit may be your only financing option if the provider doesn’t offer in-house payment plans.

4. Veterinary Emergencies Pet emergencies often come with substantial bills and limited payment alternatives. CareCredit’s wide acceptance at veterinary clinics makes it valuable for pet owners facing urgent care situations.

Who Should Avoid CareCredit

1. Borrowers with Inconsistent Income If your income fluctuates seasonally or unpredictably, the rigid payment schedule required to avoid deferred interest makes CareCredit exceptionally risky.

2. Those with Limited Financial Cushion Without an emergency fund or financial safety net, a single missed or late payment can trigger devastating penalty APR charges and retroactive interest.

3. Consumers with Multiple Debts If you’re already managing several debts, adding CareCredit increases the complexity of your financial obligations and the risk of payment mishaps.

4. Anyone Uncertain About Payoff Timeline If there’s any doubt about your ability to pay the full balance within the promotional period, the deferred interest structure makes CareCredit an expensive choice.

Better Alternatives to CareCredit

Before committing to CareCredit, explore these potentially superior options:

1. Traditional 0% APR Credit Cards

Advantages Over CareCredit:

True 0% APR (no interest accumulation during promotional period)
Interest applies only to remaining balance after promotion ends
Lower standard APRs (typically 16%-24% vs. CareCredit’s 32.99%)
Cash back rewards or travel points
Broader acceptance for non-medical expenses

Recommended Options:

Wells Fargo Reflect® Card:

0% intro APR for 21 months on purchases and qualifying balance transfers
Ongoing APR: 16.99%, 23.49%, or 28.74% Variable
No annual fee
More forgiving if you can’t pay everything within the promotional period

Citi® Diamond Preferred® Card:

0% intro APR for 21 months on balance transfers (18 months on purchases)
Ongoing APR: 17.24%-27.24% Variable
Balance transfer fee: 3% (minimum $5)
Excellent for consolidating existing medical debt

How to Use for Medical Expenses:

Apply for the card before or shortly after incurring medical expenses
Use the card to pay the medical bill directly
Calculate monthly payments to eliminate the balance within the promotional period
Benefit from true 0% APR protection—if you can’t pay everything on time, you only pay interest on the remaining balance going forward

2. Healthcare Provider Payment Plans

Many healthcare providers offer in-house payment plans that rival or exceed CareCredit’s terms:

Typical Features:

0% interest for 12-24 months
No credit check required
Direct billing through provider
Often includes discounts for upfront payment
Flexible payment schedules

How to Access: Contact your provider’s billing department before treatment to discuss payment plan options. Many providers prefer these arrangements because they avoid credit card processing fees, making them more willing to negotiate favorable terms.

3. Medical Credit Cards with Better Terms

Alternatives to Consider:

Prosper® Healthcare Lending:

Personal loans specifically for medical procedures
Fixed interest rates (often lower than CareCredit for qualified borrowers)
Terms from 24-84 months
No prepayment penalties
Credit scores starting at 640

LendingClub Patient Solutions:

Medical-specific financing
Fixed rates and predictable payments
No hidden fees
Transparent terms without deferred interest traps

4. Personal Loans

Personal loans from banks, credit unions, or online lenders can provide favorable alternatives to CareCredit:

Advantages:

Fixed interest rates (typically 6%-36% depending on creditworthiness)
Predictable monthly payments
No deferred interest concerns
Longer repayment terms available (up to 7 years)
Can be used for any expense, not just healthcare

Best Personal Loan Sources:

Credit Unions: Often offer the lowest rates for members with good credit
Online Lenders: Quick approval and funding (often within 1-3 business days)
Traditional Banks: Competitive rates for existing customers with strong relationships

How to Compare: Visit reputable comparison sites like Credible or LendingTree to compare multiple personal loan offers without affecting your credit score through soft inquiries.

5. Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs)

For Planned Medical Expenses:

HSA Benefits:

Tax-deductible contributions
Tax-free growth
Tax-free withdrawals for qualified medical expenses
Can be invested for long-term growth
Funds roll over year to year

FSA Benefits:

Pre-tax contributions reduce taxable income
Can be used for copays, deductibles, prescriptions, and many other medical expenses
“Use it or lose it” structure encourages regular healthcare maintenance

Strategic Planning: If you know you’ll face significant medical expenses (such as planned surgery or orthodontic treatment), maximize HSA/FSA contributions in advance to build a tax-advantaged fund for these costs.

6. Negotiating Medical Bills

Before financing anything, negotiate with your healthcare provider:

Effective Strategies:

Request Itemized Bills: Review charges for errors (studies show up to 80% of medical bills contain errors)
Ask for Self-Pay Discounts: Uninsured rates are often 20%-40% lower than insured rates
Negotiate Based on Medicare Rates: Medicare rates are typically 200%-300% lower than private insurance rates
Request Financial Assistance: Many hospitals have charity care programs or sliding-scale fees
Propose Lump-Sum Settlement: Offer to pay 25%-50% of the bill upfront in exchange for balance forgiveness

When to Negotiate:

Before receiving treatment for elective procedures
Within 30 days of receiving a bill
Before accounts go to collections (typically 90-120 days)

7. Medical Bill Assistance Programs

Non-Profit Resources:

Dollar For: Crowdfunding platform specifically for medical expenses
Patient Advocate Foundation: Provides financial aid for chronically ill patients
HealthWell Foundation: Assistance for specific diseases and conditions
NeedyMeds: Database of patient assistance programs

How to Use CareCredit Responsibly (If You Must)

If you decide CareCredit is your best option, follow these strategies to minimize risk:

Step 1: Calculate Your True Monthly Payment

Don’t rely on the minimum payment. Instead, use the APR calculation principles to determine your actual costs:

Divide Your Balance by Promotional Period:
- $2,000 balance ÷ 12 months = $167/month minimum
Add a Safety Buffer:
- Aim to pay off 1-2 months early
- $2,000 balance ÷ 10 months = $200/month target
Account for Other Purchases:
- Additional charges during the promotional period require proportionally higher payments

Step 2: Set Up Automatic Payments

Configure Autopay for:

At least the minimum payment (to avoid late fees and penalty APR)
Ideally, your calculated monthly payment amount
Schedule payments 5-7 days before the due date (to account for processing time)

Step 3: Track Your Promotional Period End Date

Create Multiple Reminders:

Calendar alert 90 days before expiration
Calendar alert 30 days before expiration
Calendar alert 7 days before expiration
Physical note in a visible location (refrigerator, bathroom mirror)

Step 4: Monitor Your Balance Weekly

Check Your Account Every Week:

Confirm payments processed correctly
Verify no unauthorized charges
Calculate remaining balance and time
Adjust payment amounts if needed

Step 5: Pay Off Early

Benefits of Early Payoff:

Eliminates risk of missing the deadline
Reduces stress and mental burden
Frees up credit for future emergencies
Avoids interest entirely (for deferred interest promotions)

Strategy: If you receive a windfall (tax refund, work bonus, monetary gift), immediately apply it to your CareCredit balance—even if you’re on track to pay it off on time. The peace of mind is worth more than potential alternative uses for those funds.

Step 6: Don’t Make Additional Purchases

Why This Matters:

Additional purchases complicate payment calculations
New charges may have different promotional terms
Increases the total amount you must pay off
Creates confusion about which charges fall under which promotional period

Best Practice: Treat your CareCredit card as a closed account after making your initial financed purchase. If another medical expense arises, explore alternative payment methods rather than adding to your CareCredit balance.

Understanding Your Credit Impact

How CareCredit Affects Your Credit Score

Hard Inquiry: Applying for CareCredit triggers a hard inquiry on your credit report, potentially lowering your score by 5-10 points temporarily. This inquiry remains visible for two years but only impacts your score for the first 12 months.

Credit Utilization: CareCredit counts toward your overall credit utilization ratio—a critical factor comprising 30% of your FICO score. High utilization (above 30%) can significantly damage your score.

Example:

CareCredit limit: $5,000
Balance: $4,000
Utilization: 80% (very high—likely to hurt your score)

To better understand how credit utilization and other factors affect your creditworthiness, try our free credit health simulator tool to see how different scenarios impact your credit profile.

Payment History: On-time CareCredit payments help build positive payment history (35% of your FICO score). Conversely, late payments severely damage your credit, remaining on your report for seven years.

Account Age: As a new account, CareCredit initially lowers your average account age, which can slightly reduce your score. Over time, as the account ages, it contributes positively to your credit history length.

Medical Debt and Credit Reporting Changes

Important news for consumers: As of January 7, 2025, the Consumer Financial Protection Bureau ruled that medical bills can no longer appear on credit reports. However, this applies to medical debts sent to collections—not to medical financing products like CareCredit, which are reported as revolving credit accounts.

What This Means:

Unpaid medical bills won’t hurt your credit score
Medical debt in collections won’t appear on credit reports
CareCredit payments still impact your credit (it’s a credit card, not medical debt)
This rule provides protection if medical bills go to collections, but doesn’t protect you from CareCredit’s credit reporting

Frequently Asked Questions About CareCredit

What credit score do you need for CareCredit?

CareCredit doesn’t publish specific credit score requirements, but general guidelines suggest:

CareCredit Credit Card: Fair credit (FICO 580-669) may qualify
CareCredit Rewards Mastercard: Good to excellent credit (FICO 670+) typically required

Pre-qualification tools allow you to check eligibility without impacting your credit score. Use our credit health simulator to estimate your approval likelihood before applying.

Can you use CareCredit for family members?

Yes, you can use your CareCredit card for qualified medical expenses for:

Yourself
Spouse
Children
Parents
Other family members
Pets

The card isn’t restricted to the cardholder’s personal medical care.

What happens if you don’t pay off CareCredit in time?

If you don’t pay the full promotional balance before the deferred interest period expires:

All interest that accumulated from day one is added to your balance
Standard APR (32.99%) continues accruing on the remaining balance
Late payments trigger penalty APR (39.99%)
Your credit score may suffer from high utilization and potential late payments

To understand exactly how much this could cost you, use the APR calculation method to project your total interest charges.

Does CareCredit have a rewards program?

The CareCredit Rewards Mastercard earns points:

4 points per $1 in CareCredit network (under $200 purchases), health/wellness, and pet stores
3 points per $1 at grocery stores and restaurants
2 points per $1 on all other purchases

However, the standard CareCredit Credit Card offers no rewards.

Can you pay off CareCredit early?

Yes, and you should whenever possible. Early payoff:

Eliminates deferred interest risk
Frees up available credit
Reduces financial stress
Has no prepayment penalties

How long does CareCredit approval take?

Most applications receive instant decisions. Upon approval, you receive an account number immediately, even before your physical card arrives. This allows you to use the account at the point of care.

Can you use CareCredit at any hospital?

No. CareCredit is only accepted at enrolled providers. While over 285,000 providers participate, not all healthcare facilities accept CareCredit. Always verify acceptance before receiving services using the CareCredit provider locator.

How does CareCredit’s APR compare to other credit cards?

CareCredit’s 32.99% standard APR is significantly higher than the average credit card APR of 22.25% reported by the Federal Reserve. This makes it substantially more expensive if you carry a balance beyond promotional periods. Our guide on understanding credit card APR provides detailed comparisons to help you evaluate your options.

Final Verdict: Is CareCredit Worth It?

CareCredit occupies a unique niche in medical financing, but it’s not the best choice for most consumers. The card’s deferred interest structure, extraordinarily high standard APR, and punitive penalty rates create substantial financial risks that outweigh the benefits for many borrowers.

When CareCredit Makes Sense:

You have perfect payment discipline and consistent income
You’ve exhausted better alternatives (provider payment plans, 0% APR credit cards)
You face an immediate medical emergency without other options
You’re absolutely certain you can pay the full balance within the promotional period
Your provider doesn’t accept traditional credit cards

When to Choose Alternatives:

You have good to excellent credit (qualify for better 0% APR cards)
You have any uncertainty about your ability to pay on time
You’re already managing multiple debts
Your provider offers in-house payment plans
You can negotiate bill reductions or payment terms
You have access to personal loan options with fixed rates

The Bottom Line

While CareCredit provides valuable access to healthcare financing for millions of Americans, it should be a last resort rather than a first choice. The combination of deferred interest mechanics and sky-high interest rates creates a financial minefield that can trap borrowers in expensive debt.

Before applying, thoroughly explore alternatives: negotiate your medical bills, investigate provider payment plans, consider true 0% APR credit cards, and evaluate personal loan options. If you ultimately choose CareCredit, approach it with extreme caution, meticulous planning, and an unwavering commitment to paying off the balance before the promotional period expires.

Understanding how credit card APR works is fundamental to making informed decisions. Our comprehensive guide on calculating APR on credit cards provides the knowledge you need to evaluate CareCredit against other financing options and understand your true borrowing costs.

Your financial health is just as important as your physical health—make sure your medical financing choice supports both.

Internal Linking Opportunities

Link to credit health simulator: “Before applying for any medical financing, check your credit health using our free credit simulator tool to understand how new accounts might impact your credit score.”
Link to APR calculation guide: “To fully grasp CareCredit’s true costs, learn how to calculate APR on a credit card and understand exactly how interest accumulates on your balance.”