CareCredit Financing Calculator
CareCredit offers a way to finance health, beauty, and wellness needs. A key feature is promotional financing, where you can avoid interest if you pay your balance in full by the end of a specified promotional period. This calculator helps you understand the monthly payment needed to achieve that goal and the potential deferred interest if you don't.
6 Months 12 Months 18 Months 24 Months
Understanding CareCredit Promotional Financing
CareCredit is a healthcare credit card designed to help you pay for out-of-pocket medical expenses not covered by insurance. It's widely accepted by dentists, veterinarians, optometrists, and other healthcare providers.
How Promotional Financing Works
One of the most attractive features of CareCredit is its promotional financing options, often advertised as "0% APR if paid in full within X months." These periods can range from 6 to 24 months or even longer for larger purchases. During this promotional period, no interest is charged on your purchase.
The Catch: Deferred Interest
It's crucial to understand the concept of "deferred interest." If you do not pay the entire promotional balance in full by the end of the promotional period, interest will be charged from the original purchase date. This means that all the interest that would have accumulated during the promotional period is added to your balance retroactively. The standard APR (Annual Percentage Rate) for CareCredit can be quite high, often in the mid-to-high twenties.
Why This Calculator is Important
This calculator helps you plan effectively to avoid deferred interest. By inputting your total procedure cost, the promotional period, and the standard APR, it will tell you:
- The exact monthly payment needed to pay off your balance before the promotional period ends, ensuring you pay no interest.
- The potential total deferred interest you would owe if you fail to pay off the balance by the deadline, based on the original purchase amount and the standard APR.
Example Scenario:
Let's say you have a dental procedure costing $2,500, and you qualify for a 12-month promotional financing period with a standard APR of 26.99%.
- Total Procedure Cost: $2,500
- Promotional Period: 12 Months
- Standard APR: 26.99%
Using the calculator:
- Monthly Payment to Avoid Interest: $2,500 / 12 = $208.33
- Potential Total Deferred Interest: If you don't pay the full $2,500 by the end of 12 months, you could be charged approximately $2,500 * (0.2699 / 12) * 12 = $674.75 in deferred interest. Your total amount due would then be $2,500 + $674.75 = $3,174.75.
This example clearly shows the significant financial impact of not paying off the balance within the promotional window. Always aim to pay more than the minimum monthly payment required by CareCredit to ensure you clear the balance and avoid deferred interest.