The battle between Nationwide Pet Insurance and CareCredit revolves around the financial problems faced by pet owners. When a pet is suffering from a serious illness and the veterinarian suggests urgent surgery, two main questions inevitably arise in the owner's mind. First, where will they find the thousands of dollars needed for the surgery so quickly, to ensure it doesn't get delayed? And second, they might worry that all the money they've saved for the future will be gone in one go. These two scenarios clearly illustrate the difficult situation pet owners face.
Now, keeping this in mind, let's understand the comparison between Nationwide Pet Insurance and CareCredit.
Nationwide Pet Insurance has a very simple concept. It's an insurance plan where you, the owner, pay the vet bill out of your own pocket, and then you file a claim with the insurance company (Nationwide). The paid amount will be refunded to you after some time. This means they will reimburse you, but you'll have to arrange the funds yourself initially. However, it provides a safety net; you can borrow money from someone for a short period and return it once you receive the refund. This might create a temporary financial burden, but it will be resolved quickly. Ultimately, it helps protect your savings and financial future.
CareCredit is like a medical credit card. Just as you can use a shopping credit card to pay for purchases upfront and then pay the bill later, CareCredit allows you to pay the vet immediately. And whatever amount you pay the vet, you get almost 6 to 12 months of 0% interest. This means if you pay a bill of 1 lakh, you only have to pay back 1 lakh, that too in easy EMI installments. This is one of the safest and fastest ways; you don't need to go anywhere, you'll have the money for surgery, which you can pay back over a year, and your funding requirements are met in an emergency.
However, the biggest danger zone with CareCredit is that if there's a timeline given for the interest-free period, it's crucial to make the payment within that timeframe. Otherwise, the interest can go up to 25-30% APR. Delayed payments also damage your credit score, making things very difficult in the future.
Now, the question is, which is the safest option in the "Bridge vs. Safety Net" comparison? Depending entirely on either option can create significant problems. With insurance, you have to pay upfront, meaning you have no option but to arrange money in an emergency. And if you use CareCredit, you can get trapped in debt, which is a very dangerous situation.
The best option is to combine both. First, pay the vet bill using your CareCredit limit. This takes care of the urgent need. Immediately afterward, file a claim with Nationwide Pet Insurance, and you'll receive a refund. Use this refund to clear your credit card payment. Doing this within the interest-free period means you won't pay a single extra penny.
This way, your problem can be solved without any loss or stress. So, get pet insurance, but also get CareCredit, as it can be very useful in emergencies.