Top Credit Cards to Help You Manage Medical Expenses

Unexpected medical expenses can create significant financial strain, even for those who carefully budget their finances. While health insurance can mitigate some costs, bills from emergency room visits, medical copays, and dental or veterinary services can still run into the hundreds or thousands of dollars. These sudden expenses can quickly deplete savings and emergency funds, making it essential to find effective ways to manage these costs.

One solution is to utilize credit cards designed to help finance medical bills. While some medical financing options come with high-interest rates, many credit cards offer lower rates and even rewards. Here’s a look at the best credit cards that can help you manage medical expenses while potentially earning rewards.

When considering a new credit card, many people are motivated by the prospect of earning a generous welcome offer. These offers often come in the form of points, miles, or cash back, typically tied to a minimum spending requirement within a specified period after opening the account. Minimum spending requirements can vary widely, ranging from $1,000 to $30,000. If you can pay off the debt promptly, placing a large medical bill on a new credit card can help you meet that spending threshold.

While medical expenses may not typically fall into a credit card’s bonus category, you can still find cards that offer a 0% introductory annual percentage rate (APR) on purchases, allowing you to pay off your balance without accruing interest for a set period. This approach provides peace of mind, knowing you can manage your payments effectively while earning rewards on your purchases.

Here are some of the best credit cards to consider for managing medical bills:

Citi® Diamond Preferred® Card
– Annual Fee: None
– Welcome Offer: None
– Rewards on Medical Bills: No rewards
– Why It’s a Good Choice: This card offers a 0% APR on purchases for 12 months and on balance transfers for 21 months. After the promotional period, a variable APR of 17.24%-27.99% applies. It’s an excellent option for those looking to pay off a large medical expense or transfer an existing balance without accruing interest. Just ensure you plan your payments to settle the balance before the introductory period ends.

Chase Freedom Unlimited®
– Annual Fee: None
– Welcome Offer: Earn $200 cash back after spending $500 within three months.
– Rewards on Medical Bills: Earn 1.5% cash back on all purchases.
– Why It’s a Good Choice: With a 0% introductory APR on purchases and balance transfers for 15 months, this card allows you to earn cash back on your medical bills. If you also hold a premium Chase card, you can combine your rewards for more redemption options.

Capital One Quicksilver Cash Rewards Credit Card
– Annual Fee: None
– Welcome Offer: Earn a one-time cash bonus of $200 after spending $500 in the first three months.
– Rewards on Medical Bills: Earn 1.5% cash back on all purchases.
– Why It’s a Good Choice: Similar to the Chase Freedom Unlimited, this card offers a 0% APR for 15 months on purchases and balance transfers. After that, a variable APR of 19.24%-29.24% applies. The cash back can be redeemed for statement credits or through PayPal and Amazon.

Citi Double Cash® Card
– Annual Fee: None
– Welcome Offer: Earn $200 cash back after spending $1,500 in the first six months.
– Rewards on Medical Bills: Earn 2% cash back (1% when you make a purchase and 1% when you pay for it).
– Why It’s a Good Choice: This card offers a 0% introductory APR on balance transfers for 18 months, followed by a variable APR of 18.24%-28.24%. If you hold a Citi travel card, you can combine rewards for even greater value.

AARP Essential Rewards Mastercard
– Welcome Offer: Earn a $100 cash bonus after spending $500 within 90 days.
– Rewards on Medical Bills: 2% cash back on eligible medical expenses.
– Why It’s a Good Choice: This card is one of the few that specifically rewards medical expenses. It also offers a 0% introductory APR for 15 months on balance transfers made within 45 days after account opening, with a variable APR of 20.99%-29.99% afterward.

CareCredit Mastercard
– Welcome Offer: None
– Rewards on Medical Bills: Earn 2 points per dollar spent on in-network purchases through July 31.
– Why It’s a Good Choice: The CareCredit card can be used for out-of-pocket expenses at over 270,000 medical, dental, and veterinary providers across the U.S. It offers various financing options, including no interest if the balance is paid in full within 6 to 24 months.

Managing unexpected medical expenses doesn’t have to deplete your savings. By leveraging credit cards with 0% APR offers, you can finance these costs while potentially earning rewards. Before applying for a new card, it’s wise to check if any existing cards in your wallet offer a 0% APR on purchases or balance transfers. Additionally, consider other financing options, like CareCredit, and evaluate which repayment plans align best with your financial situation.

In conclusion, credit cards can serve as powerful tools for managing medical expenses, providing both financial relief and the opportunity to earn rewards. Make sure to explore your options and choose a card that best fits your needs.