Can you finance dental work? Your options

The short answer

Yes, you can finance dental work. Most offices offer at least one way to pay over time, and there are choices outside the office too. The trick is to pick one that fits your budget and to read the fine print.

The main options are an office payment plan, a medical credit card, a personal loan, a regular credit card and tax-advantaged accounts like an HSA or FSA. Each has good and bad sides. Let's go through them.

Option 1: A payment plan through the office

Some offices let you split the bill into smaller payments, with a down payment up front. The American Dental Association notes that offices commonly use outside lenders, prepayment and courtesy payment arrangements, and other in-house arrangements.

The best plans have a clear total, no hidden fees and a monthly payment you can handle. Ask whether there is interest, who the lender is and what happens if you pay late. A plan with no interest can be a great deal, but only if the terms are simple.

Option 2: A medical or dental credit card

Several lenders sell cards just for health costs. Many offer a "no interest" period, such as six or 12 months. These can work well if you pay off the full balance before the period ends.

But read the details. Many use what is called deferred interest. That means interest builds up in the background from day one. If you have any balance left when the promotion ends, you can owe all of that interest at once.

The Consumer Financial Protection Bureau (CFPB), a federal agency, looked into these cards. It found that from 2018 to 2020, people paid $1 billion in deferred interest on health care cards and loans. It also reported that medical credit cards typically charge an APR of 26.99%, compared with about 16% for general-purpose cards. The CFPB also ordered one large card company to refund $34.1 million over deceptive enrollment. Many of those people signed up while waiting for treatment and did not understand how to avoid the deferred interest.

The lesson is not that these cards are bad. The CFPB has said they can be helpful for people who pay off their balances in the promotional period. The lesson is to know your exact end date and to set up payments so the balance is zero before then.

Options 3 and 4: A personal loan or a regular credit card

A personal loan gives you a lump sum with a fixed rate and a fixed monthly payment. You pay it back over a set time, like two to five years. Banks, credit unions and online lenders offer them.

The upside is that you know the total cost from day one. The downside is that your rate depends on your credit, and some loans come with fees. Compare at least two or three offers. Credit unions often have lower rates. Do not borrow more than you need.

A card you already have is fast, and it may earn rewards. But general-purpose cards often charge high rates if you carry a balance. They make sense for smaller bills you can pay in a month or two. For large bills, a lower fixed rate is usually safer. If you do use a card, plan to pay it off fast, and keep a record of the payments you make. Do not charge a large treatment on a card if you are not sure you can handle the monthly bill, since high interest can turn a $2,000 bill into a much larger one over time.

Option 5: HSA and FSA money

If you have a health savings account (HSA) or a flexible spending account (FSA), you can often use that money for dental care. You are using money set aside before taxes, which makes it cheaper than paying with after-tax dollars. Not every expense qualifies. Cosmetic work like whitening usually does not. Rules also differ by plan, so check with your plan administrator before you pay.

Consumer Reports suggests using an FSA or HSA where you are eligible, but not both. It also advises people who skip insurance to set aside what they would have paid in premiums, in an emergency fund or an eligible account.

A made-up example, and what to check before you sign

Say your treatment costs $3,000 and you have $500 saved. You need to finance $2,500. With a 12-month no-interest plan, you would need to pay about $208 a month to finish on time. If you pay only $100 a month, you will have $1,300 left at the end. With deferred interest, you could owe a large amount of back interest on that balance.

Now compare a fixed-rate loan. If it charges 10% a year over 24 months, the payment is about $115 a month, and you pay roughly $270 in interest. The monthly payment is lower and the total is clear from day one. These numbers are only an example. Ask for the real terms before you decide, and use the plan that you can truly afford.

Whatever you pick, take a minute to check these points:

• The total you will pay, including interest and fees, not just the monthly payment.
• The interest rate, and whether it is deferred interest.
• The exact date any no-interest period ends.
• Late fees and what happens if you miss a payment.
• Whether there is a penalty for paying early. There should not be.
• Who the lender is, and how to reach them.
• Whether the plan affects your credit score. Ask if it is a hard check or a soft check.

Smart ways to lower what you finance

The less you borrow, the less you pay. Ask your office to split treatment into stages, so you pay as you go. Use your insurance first, and ask for a written estimate of what it will pay. Ask about a cash discount. And do the most urgent work first. A good dentist will tell you what cannot wait and what can.

It also helps to avoid delaying care. Small problems tend to grow, and growth costs more. If you have swelling, pain or fever, see a dentist right away.

Financing at KDA

Kendall Dental Associates (KDA) offers financing, and we accept most dental insurance plans. We also take credit cards, debit cards and NFC mobile payments. Our team will go over your treatment plan and your choices before you commit to anything.

You can call us at 305-271-1421 or come by 8833 SW 107th Ave, Miami, in the Kendall Mall. We are open Monday to Friday, 8:00 AM to 5:00 PM. For emergencies, our care is available 24/7.

Common questions

This article is general information, not medical advice. Your dentist will confirm what is right for you at your exam. General information checked against: consumerfinance.gov, ada.org, consumerreports.org.