Can I Pay For Health Insurance With a Credit Card?

If you’re enrolled in a health insurance plan, you might be wondering whether you can pay your monthly health insurance premiums using a credit card? We will provide you with everything you need to know about paying your health insurance premiums using a credit card.

Can I Pay For Health Insurance With a Credit Card?

Yes, you can pay for health insurance with a credit card as most major health insurance providers accept credit card payments for insurance premiums. Most card issuers permit you to use a credit card to pay for health insurance premiums and medical bills.

Here is a list of health insurance comapnies that accept credit card payments for health insurance premiums:

  1. Kaiser
  2. Anthem Blue Cross
  3. Aetna
  4. Cigna
  5. Humana
  6. Health Net
  7. United Healthcare
  8. Well Care

That said, you should check with your health insurance provider as some providers do not allow the use of credit cards for health insurance premiums. Some insurance providers will only allow you to pay with a debit card or via your checking account. Having said that, most major providers will allow you to pay your insurance premiums and insurance deductible via credit card.

Should You Pay Health Insurance Premiums and Deductibles With a Credit Card?

Now that you know that paying health insurance premiums and deductibles with a credit card is possible, should you pay them using a credit card? There is nothing wrong with paying your insurance premiums and deductibles with a credit so long as you can afford to make the minimum payment on your credit card.

In fact, paying for you health insurance with a credit card can be a great way to earn points and perk via your card issuer. Also, using a credit card is often the most convenient way of paying for health insurance. So, go ahead and pay your health insurance premiums and deductibles with a credit card.

The only drawback for paying for health insurance with a credit card is that you will pay interest on the premiums if you don’t pay off your credit card at the end of your billing cycle. This is so because all card issuers charge you interest on your credit card balance if it’s not paid off by the end of your billing cycle. So, to avoid paying interest on your health insurance payments, you should pay off your card.

The second thing that you should keep in mind when paying your health insurance with a credit card is that some, but not all, health insurance comapnies charge you a convenience fee for using a credit card. This fee ranges from 1% to 3% of the total amount that’s due. If you want to avoid paying this fee, you should consider paying with a debit card or your checking account. That said, not all health insurance providers charge a convenience fee for using a credit card.

Does Using a Credit Card To Pay For Health Insurance Affect Your Credit?

Using your credit card to pay for health insurance can affect your credit because it can increase your credit utilization. Credit utilization refers to how much of your available credit you use. Whenever your credit utilization increases, your credit score drops. So, when you charge health insurance premiums or deductibles onto your credit card, you will use more of your available credit, potentially lowering your credit score.

As a rule of thumb, you should keep your credit utilization below 10% and never exceed 30% credit utilization. If you use more than 30% of your credit, you will notice a significant drop in your credit score.

So, if you’re already using too much of your available credit, you should avoiding using your credit card to pay for health insurance as it can lower your credit score.

However, if you’re utilizing little of your available credit, using your card to charge health insurance bills will likely have no impact on your credit.

Additionally, if you choose to charge your health insurance on your credit card, you should make sure to pay your monthly bills on time. This is so because your payment history accounts for 35% of your credit score.

If you pay your bills on time, your credit score will increase. However, missing even a single payment on your credit card could cause significant damage to your credit.

So, only make charges on your credit card if you can afford to at least make the minimum payment on your credit card at the end of your billing cycle. If you cannot, don’t use your credit card as it could lead to damage to your credit.

What Are The Benefits of Using a Credit Card to Pay For Health Insurance

The main benefit of charging health insurance premiums and bills to your credit card is that you are able to buy yourself some extra time to pay them off since you’re borrowing money to pay them. That is, you can keep extra cash in your checking or savings account for other items that cannot be paid via credit card.

That said, if you choose to use a credit card for health insurance, you should make sure that you have enough money in your account to at least make the minimum payment on your credit card.

Failing to make the minimum payment on your credit card will cause significant, irreparable damage to your credit. So, be careful when using a credit card to pay for health insurance.

Also, you should keep in mind that if you don’t pay off the balance on your credit card after charging medical expenses to it, you will need to pay interest on the money you’ve borrowed.

Interest rates on credit cards tend to be high, costing you a lot of money in the long run. There is an exception and this is if you have a credit card with a 0% APR where you aren’t charged any interest for a limited period of time. That said, if you’re using a 0% APR, you should try to pay off your credit card balance before your card issuer starts charge you interest on the money you’ve borrowed for medical insurance expenses.

Frequently Asked Questions (FAQs)

1. Can I use a credit card to pay health insurance premiums?

Yes, you can use a credit card to pay health insurance premiums so long as your health insurance provider accepts credit cards. Most large health insurers allow their customers to pay using credit cards. There are some states that limit credit cards use, but most allow them as a form of payment. Contact your health insurance provider and ask them if they allow you to pay via credit card.

2. Does paying health insurance with a credit card build credit?

Paying your health insurance premiums does not on its own build credit. You must use your credit cards responsibly, by making your payments on time and keeping your account balance low to build credit.

3. Can I use my credit card for medical expenses?

Yes, many health insurance providers allow their customers to pay medical expenses via credit card. You should check with your medical provider and ask them whether they accept payment via credit card. If they do, there is usually nothing keeping you from charging medical expenses on your credit card.