How Can You Finance Dental Care?

In the United States, high dental costs are the most significant barrier to people receiving proper dental care.¹ Dental procedures can easily cost you thousands of dollars, which most households cannot afford.

Delaying necessary dental treatment isn’t a good idea either since it can put your oral health at risk.

What Does Dental Financing Cover?

Dental financing covers the costs of different dental procedures. For example, if you don’t have enough money for dental expenses, you can turn to a dental financing plan. 

These plans will help cover your dental expenses immediately. They allow you to proceed with the treatments even if you don’t have the full amount yet.

Types of Dental Financing Options

Here are the different types of dental financing options you can choose from:

Dental Credit Card

A dental credit card is a medical credit card that finances dental procedures. A dental credit card works the same way as a regular credit card. 

You can compare dental credit card offers of various banks to select the one that best aligns with your needs.

An application for a dental credit card will include a background check of your credit score, income level, and employment history. 

In-House Financing

In-house financing means you can pay for your dental treatment in installments. Dental practices usually offer in-house financing for different treatments.

It’s best to talk to your dentist about what financing options are available. You can also negotiate your terms as you agree on a payment plan. 

Flexible Spending Accounts (FSAs) and Health Spending Accounts (HSAs)

FSAs and HSAs are savings accounts that allow you to set aside pre-tax money for certain medical expenses, including dental procedures.

With an FSA or HSA, you can contribute a portion of your salary into the account each year. The funds in these accounts can be used to pay for various dental treatments. This includes cleanings, fillings, and orthodontic work.

Dental Insurance

Dental insurance doesn’t work like other financing options. However, it can help cover the costs of your treatment when needed. 

You pay a monthly premium for your policy, which will decrease your out-of-pocket expenses. Insurance is available as a work benefit, or you can purchase it independently.

How Do Dental Loans Work?

A dental loan is a personal loan you can use to pay dental costs. A lender, such as a bank or online lender, will give you a lump sum amount of money. The loan funds will vary depending on your plan, and you’ll pay in installments over a few months. 

Dental loans also have set payment terms and annual percentage rates. You’ll have fixed monthly payments until you’re finished repaying your loan.

What Factors Influence the Cost of Dental Financing?

The following factors can affect the cost of your dental financing:

• Type of dental procedure ⁠— Financing options for more complex treatments will be more expensive. 
• Credit score — Those with good credit scores usually have lower interest rates for dental financing options, while lenders may offer higher interest rates if you have a bad credit score.  
• Comprehensiveness — The comprehensiveness of your dental plan also affects how much you’ll pay. Your overall dental financing fee will increase if a dental plan covers more complicated dental procedures. 
• Interest rates — A higher interest rate means you’re paying more than the original procedure cost, making you spend more in the long run.
• The type of financing — Different types of dental financing will have varying interest rates, affecting how much you pay overall. 

How to Choose the Right Dental Financing Plan

The right financing plan will depend on your needs and priorities. You should always consider the following factors when choosing a dental financing plan:

Terms and Conditions

The terms and conditions outline what to follow as you pay your financing plan. Carefully read and understand these terms before signing up for any dental financing.

Repayment Schedules

Repayment schedules for your dental finances will vary depending on your agreement. Before signing a dental financing agreement, double-check the repayment schedule. Ensure that you can keep up with the agreed repayment schedule. 

Additional Fees 

See if your dental financing plan has any additional charges. Application fees, origination fees, and other administrative fees can all add up. 

Even if these fees aren’t part of your monthly payment, they will affect the plan’s overall cost. 

Insurance Compatibility 

Dental financing and insurance can work together to cover dental costs. Check if your chosen financing plan works with your dental insurance and how the two can work to maximize cost savings.

Your Financial Situation

To ensure you don’t miss any payments, you should always assess your financial situation. This gives you an overview of what payment plan works best for you. 

What Should You Consider Before Financing Dental Work?

Learning how to manage dental financing responsibly is important to avoid excessive debt. Here are some tips on how you can receive dental procedures while remaining debt-free:

• Incorporate payments into your budget — When taking out a loan for dental work, budget the amount equal to your monthly payment. 
• Negotiate your payment terms — You can always negotiate your payment terms. For example, choosing a longer payment plan with smaller monthly payments can be more manageable. 
• Explore different options — Research different dental offices and see how much they charge for your dental treatment.  
• Consider different procedures — An alternative dental procedure can cost you less than the initial recommended treatment. Try getting a second opinion to see if alternative procedures can work for your condition. 
• Seek advice — Getting help from a financial advisor can help you determine and craft a suitable financing plan. 

Summary

Dental financing is a great option for those looking to fund their dental work. The option you choose will depend on your needs.

Always consider the pros and cons of each dental financing option to ensure a more informed decision. Ensure that the plan aligns with your monthly budget to minimize the possibility of incurring too much debt.