Some dental procedures can cost as much as $10,000 or more. Your smile is important, but it can be difficult to finance, especially when you don't have the benefit of a dental insurance plan. There are a few options to keep in mind when you are deciding whether you can afford dental work. Does this Spark an idea?
Dental Office Financing
Some dentists offices allow you to pay off your bill in installments as a courtesy. There is usually no interest tacked onto this type of "loan," which makes it the ideal choice over all others. Find a dentist that offers in-house financing. Get your evaluation and dental plan estimate. The estimate will include your monthly cost and the term of the agreement (usually one to two years).
There are also companies that specifically offer financing services to dentists to offer to patients, similar to car dealership financing companies. These arrangements are just like standard loans with interest. You can go directly to the dental financing company, like CareCredit, to find a dental provider that offers this financing option.
In this latter case, you will most likely need to give your Social Security number and personal information to the clerk if asked as they may need to do a credit check to assure you are a good risk for this arrangement. You may also be asked to give a credit or debit card number to process the monthly charges automatically from your account.
Personal Loan
Getting dental work may be considered a worthy investment toward your future by some banks. For some professions, like real estate and sales, the worker's smile is very important. Apply for an unsecured personal loan as you would normally and be sure to clarify on your application that you will be using the money to pay for dental work. If possible, include a copy of your dental plan with the application as further proof of your intentions. Having this information may sway the lender to grant your loan, since the approval team can be reasonably assured that it won't be used for trivial spending.
Credit Card
Many people choose to put dental care costs on a credit card when a better financing option is not available. This is a last-case scenario that you should avoid if at all possible.
The key to financing your dental care with a credit card is to treat the cost of the dental work as separate from your other card balances. Calculate your monthly cost (including interest) that is specifically due to this new dental balance as if it were a short-term loan and pay that amount on top of your current monthly credit card bill. For instance, a $1,000 loan at 12 percent for a year will cost you $89 per month, whereas the minimum payment on the credit card will only be about $40 (assuming the minimum monthly payment has to be at least 4 percent of the balance). Avoid the temptation to make the minimum payment as defined by your credit card company.
Assure that the annual percentage rate for the dental balance is the same or lower than what you pay normally on your credit card. If you do use a lower APR, offer to pay your dental bill, be aware that some credit card companies will pay off your lower APR balances before your higher ones, which allows interest to accrue on the higher balance. So while that's good for paying down the dental balance aggressively, be mindful of how much interest is accruing on your other balances over that period.
