Need financing and credit report advice

[roselark]

Background: I need a root canal on a tooth which I had a crown placed in February. I have used most of my annual insurance benefit and most of the root canal will be out of pocket. $780

Options:
1. Put the $780 on my credit card and hope that I can pay it off over the next few months. This will be a massive strain on my finances. It might take 4-5 months for me to pay down.
2. Apply for Care Credit, which is like a credit card for medical/dental. I can pay off the $780 over 6 months with no interest. It will still be a strain, but much easier to handle.

Concerns:
While the Care Credit option will be easiest on my finances, I am concerned about the impact a new account will have on my credit score. On the other hand, it seems like my teeth are falling apart lately and if something else happens in the future, then I will have this line of credit to fall back on. We also have a lot of credit card debt (from when DH was out of work for 2 years), which we have been trying to pay down.

We are hoping to buy a new house in 2 years, and so my credit score is very important to me right now. I know some things about credit reports and how the credit scores are calculated, but there are so many variables that don't understand. I know that a new account can have a big impact for several years, but I don't know how long or if that impact decreases over time.

 

[eliza61]

Actually opening a new account can be a very good thing. Banks like to see that you have credit and that you know how to use it wisely. So if you open and new account and pay on time in addition to keeping hte balance low, that is look upon favorably.



I've had tooth pain before and believe me it's no joke so definitely take care of your health and tooth decay can cause a lot of other health issues.

So I would go with the one that has the lowest interest rate and make a repayment plan. If you think it's going to take 6 months, make a budget for that time and stick to it, if you find a few months you cna put a few dollars extra toward the balance that's great.

Good luck. I know how costly root canals and caps can cost. I had two done and even with insurance it cost me a couple hundred bucks.

 

[pryncess527]

I'm going to suggest visiting CreditKarma.com -- it is a free credit monitoring website that will not only give you your credit score, but they have a simulator to help you see what impact various actions would have on your score, so you can get an idea of what opening a Care Credit account would actually do.

 

[Planogirl]

We have a Care Credit account and I can't see that it's had a detrimental affect. Of course everyone's situation may be different. If you get the Care Credit account just make sure that it's paid on time and it might actually help your credit.

 

[CyndiLooWho]

You might also look at taking out a personal loan or a consolidation loan with your bank / credit union. We did that several times when we were dealing with poor financial decisions and / unemployment. The rates are generally better and you have a fixed payment over time that's lower than cc minimums. The downside is that they might make you close a cc account that you are paying off and that it's not a line of credit, but a fixed loan, so no money available if you need more in 6 mos.