It can be tempting to be swept away with personal vanity and elect for costly cosmetic procedures. One day you decide that Botox is a must, and are easily persuaded to opt for a spot of liposuction at the same time. It is tempting to enhance the new look which the surgical hair restoration gave with a breast augmentation. Luckily Carecredit have a credit card which offers easy payment terms, which many participating providers are happy to accept.
The Carecredit card works just like a deferred interest credit agreement loan, except it also comes with revolving credit, thus making it a credit card. It offers promotional rates of 0% APR and 14.9% APR, dependent on how long the card user wishes to extend the payments. Those not familiar with deferred interest credit agreements should be wary of the terms and conditions, as the real APR stands at 26.9% if the full balance is not met by the due date.
Essentially the card has no annual fees or pre-payment fees, and can be used for a range of cosmetic procedures, dentistry, veterinarian services, corrective eye treatments, hearing aids, plus other services. A service provider who participates in the payment plan scheme with Creditcare will accept payment via the Carecredit card and monthly terms will be decided on.
Card users have the option of paying the balance over 6, 12, 18 or 24 months at 0% APR. Each month they will receive a statement with a minimum payment to be paid, and the total balance must be paid in full by the agreed date. If however the date slips by and the balance is not paid in full then 26.99% APR will be charged on the full balance.
If a service costs over $1000 card users have the option of increased terms over 24, 36 or 48 months, and over 60 months for purchases in excess of $2,500. A set payment plan is made with a fixed monthly payment including interest. The balance must be paid off in full by the due date or the full balance will incur the 26.99% rate. With either agreement if a payment goes 60 days past due the penalty interest rate of 29.99% will be applied.
Those who are financially organized will take care of the date the balance is due and ensure the balance is paid off in full before the due date. However many card users can make an error and simply forget to make the payment for the full balance and find that they are charged the real interest rate of 26.99%.
As the card offers revolving credit it can be used for as many services as the user wishes providing the credit limit is not breached. Thus a consumer could potentially have several payment plan arrangements running together which could both stretch the budget and impair credit scores.
Credit cards designed for health and beauty treatments can be of benefit to those who have the disposable funds to pay off the balance and take advantage of the interest free offer. They can represent a saving on urgent dental treatment or veterinarian costs, as opposed to using a standard credit card.
However the danger is when long term payment plans are entered into for non essential cosmetic services. The liposuction may be a distant memory by the time the average $3000 doctors fee is paid off on a payment plan which was taken over 60 months, and the weight has been regained. It can be too easy to continually use the card for recurrent treatments such as Botox injections, without really being to afford them.
Source: Creditcare