When you need to have a medical procedure that is not covered by insurance, it can cost thousands of dollars. Many patients simply do not have that kind of money available, and must consider a patient financing option. Traditional patient financing options can offer “same as cash” offers, while the Advance Care card offers its own form of interest free financing. Lets see how these patient financing options compare:
How traditional patient financing works
With most forms of traditional patient financing, applicants receive six months or longer to pay their entire bill before incurring interest charges. With these types of plans, interest is actually accruing from when the procedure is processed, it is just waived when patients pay off their entire balance before the promotional financing expires. Nevertheless, many patients fail to notice this detail hidden in the fine print.
If the patient fails to pay off the balance by just a day or two, or the amount paid is just short of the entire balance, their costs increase dramatically. In this case, interest is applied on the entire balance, over the entire time that since the procedure was paid for. To many patients, it can seem like interest is actually being charged retroactively. One day they can pay their bill without being charged interest, but the next day they could owe hundreds of dollars in interest charges accrued months ago.
How the Advance Card Card works
Cardholders apply for this card and receive a quick decision. They can then schedule their medical procedure as soon as they are approved. Patients receive either six or 14 months of interest free financing for their procedure, depending on their credit history and the offer they apply for.
Their balance is then subject to a 0% APR for the entire duration of the promotional financing period. Interest does not accrue, and patients will never be responsible for interest costs during their promotional financing period, even if they fail to pay off their entire balance during that time.
Once the promotional financing period expires, only then will the standard interest rate begin to apply, but just to their remaining balance. If patients pay off their balance before the promotional financing period ends, then they will not pay any interest charges at all. If patients pay off most of the balance, interest will start accruing, but only on the remaining balance, and only starting on the date that the promotional financing period ended. This can be the difference between paying a few dollars in interest charges, or a few hundred dollars.
Other key features of the Advance Care Card
Besides the differences in how interest is charged, there are still some important distinctions between the Advance Care card and other patient financing options. For example, with the Advance Care card, the standard interest rate for the most qualified patients can be as low as 10.99% APR. With traditional patient financing options, the standard interest rate is often 25% APR or higher, even for those with excellent credit. In fact, those who qualify, but have less perfect credit will only receive a maximum interest rate of 22.99%.
Also, the Advance Care card, has no penalty interest rate that is applied when cardholders fail to make a payment on-time. Furthermore, cardholders will even have their first late payment fee waived, since we all can make mistakes. Finally, the customer service telephone line for this card is staffed by 100% U.S. based representatives.
Making the decision
Traditional patient financing options can seem attractive, until you understand the consequences for not paying the entire balance before the promotional financing ends. The entire case for using these types of financing programs rests on patients not considering the tremendous interest charges they could face if they don’t pay their entire balance on-time.
In contrast, using the Advance Care card almost always results in fewer interest charges. Not only will patients be guaranteed an interest free promotional financing period, but even if they do eventually accrue interest, it will be at a rate that is more competitive.
Authorizing a medical procedure and applying for a loan are both very important decisions that must be taken seriously. Only by taking time to understand the differences between traditional patient financing and the Advance Care card, you patients make the best decision.