Consumers Discouraged From Medical Credit Cards

With more Americans using their personal credit cards to pay for medical expenses, many lenders have launched "medical credit cards." But financial professionals are urging consumers to consider the costs of putting medical bills on credit cards, as they may harm an individual's finances.

Medical credit cards are no different than consumer credit products regarding high penalty annual percentage rates and credit score damage resulting from late or missed payments. Additionally, many medical providers require up front payments for certain procedures, making it difficult for consumers to secure a refund if the treatment is cancelled or they choose to go with another provider, Bankrate.com reports. For these reasons, consumers are advised to explore all medical repayment options before turning to credit.

"Try negotiating with your health care provider for either a reduced charge or at the least an extended payment schedule," The Access Project executive director Mark Rukavina told Bankrate. "Unless you're at risk of losing life or limb, using medical credit cards is not the solution."

Medical debt is currently the No.1 cause of bankruptcy in the United States.