CareCredit for Gender-Affirming Care

What is CareCredit?

CareCredit is a credit card for health and wellness purchases. Similar to Affirm and other “pay-as-you-go” or “buy now, pay later” financial products, CareCredit allows cardholders to break up large health-related expenses into smaller installments. CareCredit is accepted for a variety of expenses including, but not limited to, dentistry, doctors visits, specialists, and even veterinary care.

CareCredit partner network contains over 285,000 providers who accept CareCredit financing. It has become a viable option for some families who have emergency medical expenses or need flexible financing to cover out-of-pocket expenses not covered by insurance.

CareCredit can provide financial breathing room for medical and wellness expenses that arise. It’s a pathway to build your credit if monthly payments are made on time and your overall credit utilization isn’t too high. However, since CareCredit is a line of credit, it’s important to identify an action plan to pay back the borrowed amount.

Is CareCredit a good option for gender-affirming care?

Because many types of gender-affirming healthcare and services require significant out-of-pocket costs, especially if they are not covered by health insurance, many trans people choose to use CareCredit to help spread expenses out over time.

Depending on your provider, it may be accepted for surgery, hormone-related care, permanent hair removal, and other medical expenses.

Not every healthcare provider accepts CareCredit, so it's important to confirm with your provider before applying or making treatment plans. Before relying on CareCredit, ask your provider:

• Do you accept CareCredit?
• What promotional financing options are available? (More info on this below!)
• Are there any additional fees or considerations?

Create an action plan

You can create an action plan to pay the credit card balance by asking yourself a few of the following questions:

“How much can I afford to pay monthly towards this balance?”

Consider your current monthly expenses such as rent, groceries, transportation, utilities, insurance, and existing debt (including student loans.) Also consider any monthly savings or investments you contribute to. After these expenses, what is your left over income? This is the amount that you can use to determine the amount of money you are comfortable paying each month towards the additional debt. It’s important to note, two people could have the same amount of disposable income after monthly expenses, but have different comfort levels for the amount they would allocate towards this new payment.

“How long do I feel comfortable having this balance?”

For some people, having any form of debt causes anxiety. Gauging your emotional capacity for the credit card and the estimated expense can help you determine the monthly amount that you can afford. For example, if 12 months is the maximum you’d feel comfortable with credit card debt, and you can comfortably make $200 monthly payments, somewhere under $2,400 may be the best fit.

“How much can I pay upfront?”

When possible, paying with savings rather than borrowing can help reduce interest costs and avoid additional debt. Consider how much of your existing savings you could contribute towards a down payment. In addition, calculate how long it would take you to save for the expense, if it’s not an emergency.

“What type of income do I have?”

For individuals with salaried income, it’s much easier to budget. For individuals with varying income (ex. artists, contractors, hourly wages, etc) it may be harder to project monthly income. If your income varies month-to-month, try to set aside at least the first three months of projected credit card payments in a High-Yield Savings account prior to opening the CareCredit card for any months where income is lower than expected.

Explore Promotional Financing Options to maximize savings

Some examples of promotional financing that CareCredit offers (subject to change) include:

• No Interest if Paid in Full Within 6, 12, 18 or 24 Months. This option is a great way to save money on interest and is a great option if you know you can pay off the full balance before the promotion period ends. Note that if the balance is not paid in full by the end of the promotional period, interest will begin to accrue on the balance remaining at a high rate (19-34% depending on credit history.)
• Reduced APR and Fixed Monthly Payments Required Until Paid in Full. This option will save money on interest through the reduced interest rate and provide a predictable monthly payment until the balance is paid off.

Other things to know

• Missed payments impact your credit score and may impact your ability to secure other forms of financing. On the other hand, on-time payments help your credit score. Be sure to create an action plan!
• If you already have a credit card, check with your bank to see if you are eligible for a “pay over time” benefit. This allows you to pay larger expenses over a period of time for a nominal fee and typically no credit check. This option will increase your credit utilization so it may not be a helpful option if you already have a credit utilization above or close to 30%.

Consider other options, too

Before opening a new line of credit, it's worth exploring whether one of these alternatives better fits your financial situation:

• Payment plans offered directly by your provider’s office.
• Financial assistance or charity programs, such as Point of Pride’s financial aid programs towards surgery, hormone replacement therapy, permanent hair removal, and other care needs.
• Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs). If you have an HSA or FSA through your employer, you may be able to use those pre-tax funds to pay for certain eligible medical expenses. Depending on your plan and the specific service, using HSA or FSA dollars can reduce your overall out-of-pocket costs. We recommend you check with your plan administrator to determine eligibility.
• Other financing options. PatientFi, for example, offers “buy now, pay later” financing for certain healthcare expenses. PatientFi does not issue a credit card like CareCredit; instead, it offers promotional financing and fixed monthly payments to help fit your budget. PatientFi loans are subject to approval and may impact your credit score.
• Existing credit card installment features. Many credit card issuers now offer "pay over time" or installment payment options that allow eligible purchases to be repaid over several months for a fixed monthly payment or fee. If you already have a credit card with these features, this may be worth comparing to CareCredit. (That said, this is often not the best choice if you’re already carrying a high balance or utilization percentage.)