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Americans reportedly spend an estimated $294 billion on out-of-pocket medical costs each year, according to a study reported by CNN Money. The soaring cost of health care has prompted more and more consumers to consider medical credit cards as a way to pay for these unforeseen and necessary expenses.

Recently, I became one of the millions of Americans faced with this dilemma. As I sat in my oral surgeon’s office staring at x-rays of my soon-to-be-removed wisdom teeth, I was presented with the cold hard truth. This procedure was going to cost me nearly $3,000, none of which would be covered by my dental insurance. Suddenly a medical credit card was looking like one of my only viable options.

If you find yourself in a similar situation, here are some questions to consider before deciding to pay with a medical credit card.

What is a medical credit card?

Medical credit cards function like typical credit cards and are offered to consumers with large out-of-pocket health care expenses. Most offer 0% introductory financing for twelve months, but your interest rate can reportedly jump to as high as 30% if you miss a payment, or after the introductory period expires. Just like other credit cards, a medical credit card can help you build good credit, but if you’re late on a payment it can damage your credit score just as easily.

Medical credit cards can be a good payment method because they offer a streamlined payment system for medical bills. However, automatic billing can also cause complications if you’re paying for a series of procedures that will take place over time.

Are there other options?

A medical credit card can be a good resource for unexpected medical expenses, but in the long run it may be more valuable to look into programs to cut down future costs. Ask your employer if they offer a Flexible Spending Account , in which money is deducted from you paycheck on a pre-tax basis to use for medical expenses within that year.

If your company does not participate in a program, or if you’re currently unemployed, try negotiating directly with your doctor’s office to set up a payment plan. Let them know your current financial situation so that they can work with you to create a plan that’s best for you.

What about my provider?

One downside of medical credit cards is that they’re often seen as targeting vulnerable people who are seeking medical attention. If you’re being pushed into applying for a medical credit card while visiting your doctor’s office, be sure to take some time to really consider your options. At the end of the day, a medical credit card may help you finance an important procedure, but it’s also a financial product that needs careful consideration like all financial decisions.

If a medical credit card is still your best option, be sure to read through the terms thoroughly, and ask your health care provider any questions before applying. One of the most important things to ask is if your provider will even accept a medical credit card. Different issuers tend to have different networks of providers, so make sure you use an in-network card when financing.

What does is all mean?

As health care costs continue to rise, it’s apparent that medical credit cards will continue to grow in popularity. American consumers will charge an estimated $150 billion worth of health care expenses by 2015. A medical credit card, like any other credit card, can be a good choice when used responsibly. That being said, it shouldn’t be the only option you consider. Doing research on all of your options and planning ahead with health care savings accounts can really make difference when it comes to financing unexpected future medical expenses.

Give credit where credit is due,

Danielle Belfatto, Karma Contributor

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