I went through almost exactly this scenario. It didn't work out well, partly because I wasn't versed on things like utilization and maxed out cards at the time.
Anyway, my dentist's office convinced me to apply for CareCredit against my better judgment. My bill for upcoming appointments was not quite $3,800. All appointments were charged to the card at once. The reason for doing that was that the larger charge gave me an 18-month promo. Just as an example, a subsequent charge of less than $300 gave me a 6-month promo.
The problem came when CareCredit approved me for a $4,000 limit. I walked out of the office 95% maxed out. Neither the dentist's office nor CareCredit should have allowed that to happen. Had I known better, I'd have refused to accept the card or refused to allow the office to submit the charge. A few weeks later, I started reading about utilization and maxed out cards and started paying down my bill immediately. Of course, that defeats the purpose of 0% interest. And Synchrony didn't like the large payments and waited about 10 days to apply restore my limit. But I wasn't about to take the bite out of my score or risk adverse action from other lenders.
I recently looked back at CareCredit's application. One of the things you're asked is the estimated cost of the procedure. Apparently, that's part of how they determine your limit. I suppose one option is to fudge that amount and use a higher number, but I don't really like the idea of being less than truthful. On the other hand, if you anticipate future use of the card, maybe you're still in the truthful category. 
Besides refusing, another option would have been to ask CareCredit to immediately increase the limit. $13,500 would have been ideal, as I'd have been below the 28.9% threshold that would have been considered "responsible." If that couldn't be done, an $8,000 limit would have kept me under 50%.
Anyway, beware. If your limit's OK, go ahead. But I like the idea of a Visa/MC with a 0% promo better. At least you have a card that can be used anywhere once your balance is paid down.
@HeavenOhio wrote:I went through almost exactly this scenario. It didn't work out well, partly because I wasn't versed on things like utilization and maxed out cards at the time.
Anyway, my dentist's office convinced me to apply for CareCredit against my better judgment. My bill for upcoming appointments was not quite $3,800. All appointments were charged to the card at once. The reason for doing that was that the larger charge gave me an 18-month promo. Just as an example, a subsequent charge of less than $300 gave me a 6-month promo.
The problem came when CareCredit approved me for a $4,000 limit. I walked out of the office 95% maxed out. Neither the dentist's office nor CareCredit should have allowed that to happen. Had I known better, I'd have refused to accept the card or refused to allow the office to submit the charge. A few weeks later, I started reading about utilization and maxed out cards and started paying down my bill immediately. Of course, that defeats the purpose of 0% interest. And Synchrony didn't like the large payments and waited about 10 days to apply restore my limit. But I wasn't about to take the bite out of my score or risk adverse action from other lenders.
I recently looked back at CareCredit's application. One of the things you're asked is the estimated cost of the procedure. Apparently, that's part of how they determine your limit. I suppose one option is to fudge that amount and use a higher number, but I don't really like the idea of being less than truthful. On the other hand, if you anticipate future use of the card, maybe you're still in the truthful category.
Besides refusing, another option would have been to ask CareCredit to immediately increase the limit. $13,500 would have been ideal, as I'd have been below the 28.9% threshold that would have been considered "responsible." If that couldn't be done, an $8,000 limit would have kept me under 50%.
Anyway, beware. If your limit's OK, go ahead. But I like the idea of a Visa/MC with a 0% promo better. At least you have a card that can be used anywhere once your balance is paid down.
The above is exactly why I decided to go with Discover It instead of Care Credit, which I had been considering, as I really need to have at least cleaning done and possibly some dental work, plus which I've had to pay for insulin prescriptions recently. In fact, the prescriptions were how I broke in my new Discover.
@kats_rebuild wrote:I need to have some dental work done and trying to determine the best way to finance it. The total cost will be roughtly $3,500. Due to the nature of the work, I will have several appointments and the $3500 will likely be charged over the course of 6 weeks. I have the following questions:
1. How does CareCredit determine how many months you get to pay off a balance? I see they offer 6,12,18 and 24 months, but how do you know which one will apply? Is this based on total amout charged? Is it required to charge that amount all at once?
2. If I charge $1000 at one visit and then 2 weeks later charge another $1000. Does CareCredit apply the same financing rules? Or is each purchase on it's own multi-month interest free promotion?
3. Would it make sense to just consider the Citi Simplicity instead? Twenty one months of 0% intro APR would be more than enough time to pay off the work. Are there benefits that CareCredit has over the Citi Simplicity card when used for dental work?
Thanks in advance for the help and advice.
I think a promotional 0% rate on purchases would be just as good, and of course the mastercard would be much more useful.
I used to have Care Credit but cancelled it after learning that when it gives you the promotional 0% deal it charges the dentist an arm and a leg.
@kats_rebuild wrote:So I went ahead and applied for the Citi Simplicity...was approved but with a low limit, only $4500. While this will cover the needed dental work it will tank my 5% utlitization. I have no forseeable need to apply for additional credit in the immediate future, but I wouldn't want the utilization to cause AA from other lenders.
I might try calling tomorrow to see if I can recon the CL. I have a Citi DC with an 8k limit. I would be happy if they could match that.
Good luck with it