How to use a credit card to cover your health expenses

Medical expenses can be costly and unexpected even after insurance, and many Americans are not ready to pay from their pocket. Some people can withdraw their credit cards to pay their medical bills if they don’t have cash on hand or simply because they want to earn a reward at the expense.

Unfortunately, 15% of credit card debtors are the reason why emergency and/or unexpected medical expenses have balances, according to Bankrate’s 2025 Credit Card Debt Survey.

Recently I had an emergency surgery for my intramedullary nail after breaking my tibia and fibre while skiing. The procedure alone costs a whopping $69,000 and does not include the costs of anesthesia, x-rays, hospitalization and physical therapy. Luckily, I have health insurance, so this incident quickly reached my maximum deductible and out-of-pocket threshold. Still, I look at the cost of medical expenses worth thousands of dollars.

Since you’ve created your own repayment strategy, paying your medical bills with a credit card is a decent option. We also spoke to doctors and medical billing experts on how to avoid damaging your credit score to your medical debt.

Pros and cons of paying medical bills with a credit card

You can use your credit card to pay your hospital bills and other medical expenses, but there is a risk.

The biggest consideration is that by paying your bill with a credit card, your medical debt becomes a consumer debt. Federal protections limit how medical debt affects your credit score and have additional pending rules that will keep your medical debt fully from your credit report. However, consumer debt is not under such regulations.

How medical debt affects your credit

Thanks to recent federal regulations, healthcare costs don’t affect your credit history almost as much as other types of debt.

In 2023, three major credit bureaus began removing medical expenses for collections under $500.

Then, in early 2025, the Consumer Financial Protection Bureau (CFPB) determined that all medical obligations should be removed from the credit report. That’s an estimated $49 billion for 15 million Americans. It should be noted that this ruling could be challenged by the new administration.

Virgie Bright Ellington, a Crush Medical debt physician and medical claims expert, advises protecting yourself under these medical debt protections. She explains that consumer debt (for example, credit cards, personal loans, HELOCs) are treated differently from medical debt. Paying medical expenses in one of these ways will result in consumer debt. With that change you will lose federal protection for your trust.

If you end up transporting your balance to a credit card, you can increase your credit usage rate, which is a credit scoring factor. Also, if you missed whether you were late or missed on your card or loan, your credit score will be damaged.

When it makes sense to pay medical expenses with a credit card

• If you pay for your provider’s payment plan with a credit card. By arranging an affordable payment plan with a hospital or provider, you can space out your payments and create them with a credit card if necessary. It helps you turn too big medical expenses into manageable chunks you can afford to reward. If you do not pay your credit card statement at the end of the billing cycle, remember that you may see missed payments in your credit report.
• If you want to earn rewards. Reward Credit Cards offer points, miles, or cashback on daily purchases. If you have money on hand to pay full medical expenses, you can charge your reward card, enjoy the reward and pay back your balance. Keep in mind that balancing and earning interest outweighs the value of your reward. Also, please note that this payment method is not federal protected from being posted on your credit report.
• If you don’t need to pay interest. 0% intro APR credit card can offer 12-21 months (or longer! or more!) before regular APR begins. Approximately 0% APR cards also earn rewards, so you can earn cashback or points on these medical expenses. You will need to plan to repay your balance by the end of the intro period. Again, your medical debt becomes a consumer debt as soon as you pay with a credit card. This means that the federal government is not protected and could affect your credit score.

If you do not pay medical expenses with a credit card

• If that might hurt your credit score. Paying medical expenses with a credit card can affect your credit score in one or more ways. Credit cards are considered consumer debt. This is not protected from appearing on credit reports, unlike medical debt. You can increase your credit usage and may lead to delays or missed payments. When you apply for a new card to pay these bills, those tough enquiries will also expand your credit.
• If you are interested. The average credit card interest rate is above 20%, which is higher than most personal loan interest rates. Other medical bill payment options will not charge you any interest. If you are unable to pay back your full medical expenses on your credit card without getting a balance, we recommend not using your credit card. These interest rates will only be added to your liability.
• If that’s what you’ll maximize your credit limit. Maximizing your credit limit or approaching your credit limit will increase your credit usage and affect your credit score. Experts recommend keeping your credit usage below 30%. Let’s say you charge $2,500 in medical expenses for your $3,000 limited card. Your credit usage reaches 83%. If your credit usage remains this high for several months, your credit score may be a hit.

Is a medical credit card worth it?

If you are handed a medical credit card application at the provider’s office, you may wonder if it is the right way to do it.

Medical credit cards provided by issuers like Carecredit help fund large medical expenses with monthly payments initially with zero interest. However, we recommend that you print finely what you call postponed interest. Once the promotion period has ended, if you still have balances, the issuer will charge all unpaid interest from the first day, based on normal April.

In particular, medical credit cards often charge higher interest rates than typical credit cards, which means they will pay much more interest than planned.

Additionally, medical credit card liabilities are not federal protection and appear on your credit report.

Experts say the best way to pay for medical expenses

Bright Ellington’s advice is always to pay directly to your provider.

“If you find that the bills you received and the bills you pay are 100% accurate, then create a direct payment plan with the providers that are issuing the bills for the services you received.”

That’s because your debt will remain classified as a medical debt and will have little or no impact on your credit report.

Bright Ellington suggests that you call your provider first and use your CPT code to request an invoice. This allows you to calculate the fair value of your invoice based on Medicare fees. You can then try to negotiate a new bill with your provider based on what you are willing to pay for. You can also apply for financial aid that nonprofit hospitals need to provide.

Providers usually offer interest-free payment plans for several months. They may also offer a discount to pay your bill in full by the first due date.

She says that some people pay the provider with credit card to get points or cashback. But “Make sure it’s the amount you can pay each month,” she advises. Otherwise, missed payment of your credit card bill will affect your credit score and earn interest.

How to pay medical expenses

Like I said, I have thousands of dollars of medical expenses for emergency surgery. When I called the provider to ask about payment options, I was offered a 20% discount to pay my bill in full by the due date. Alternatively, you can choose an 18-month payment plan that you are not interested in.

Conveniently, I am about to get a tax refund. And, like 19% of Americans who were hoping for a tax refund in 2024, I will use it to pay off my debts. Especially my medical debt.

A 20% discount will save you hundreds of dollars in the long run. You have cash on hand to pay what remains after the tax refund. So I pay my entire bill at once. You want to earn rewards, so use your credit card to earn 1x points per dollar. However, I know I can repay the balance, so I use only my card, so that won’t hurt my credit score.

Can I pay for health insurance with a credit card?

If you are self-employed, unemployed, or early retirement, and are enrolled in your health insurance, you may be able to pay your premiums with a credit card. Many of the main healthcare providers accept credit cards.

However, if you receive health insurance from your employer, you probably won’t be able to pay it with a credit card. Employer-sponsored plans allow you to pay pre-tax before premium. That is, it must be deducted from your salary.

Conclusion

The way you pay your medical bills is intentionally complicated. Many institutions earn profits by overcharging and gathering interest from Americans. Doing homework will help you pay back your medical expenses while protecting your credit score and avoiding interest.

The best way to pay your medical bills is to pay directly to your provider at once. You can pay to your provider using a credit card, but make sure you don’t carry your balance or miss out on payments. Your credit score may result in you paying the price.