Repayment Terms for
Dental Financing —
What You Need to Know
0% interest sounds great until you miss the payoff deadline. Here's everything you need to understand about dental financing terms before you sign.
Ask Us About FinancingHow Dental Financing Actually Works
Dental financing is essentially a line of credit issued by a third-party lender — most commonly CareCredit — that lets you pay for dental treatment over time rather than in a single lump sum. The dental office gets paid in full right away; you pay the lender back in monthly installments over a term you choose at the time of financing.
What makes dental financing different from a personal loan or credit card is the structure of the interest terms. Most dental financing offers a promotional period — typically 6, 12, 18, or 24 months — during which you pay little to no interest, provided you meet certain conditions. After that promotional period ends, the terms change significantly depending on which type of plan you selected.
Understanding those conditions is critical. The difference between a deferred interest plan and a true 0% interest plan can cost you hundreds of dollars — and most patients don't realize which one they signed up for until they've already committed.
"Dental financing can be an excellent tool — or an expensive trap — depending almost entirely on which repayment terms you choose and whether you understand what happens when the promotional period ends."
This guide breaks down every common repayment term structure used in dental financing, shows you real payment examples, and explains how to choose the plan that actually makes sense for your situation.
The Main Repayment Term Options
Most dental financing programs offer three types of plans. The differences between them matter far more than most patients realize.
You pay no interest at all during the promotional period — and nothing retroactively if you don't pay off the balance in time. A small monthly payment is required each month.
Interest accrues during the promotional period but is waived IF you pay the full balance before the period ends. Fail to do so and all the back-interest gets added to your balance at once.
A longer-term installment plan with a fixed interest rate (typically 14–17% APR) and a set monthly payment. No promotional period — interest applies from day one, but payments are predictable.
The Deferred Interest Warning
This is the section most patients wish they had read before signing. Deferred interest is the most commonly misunderstood term in dental financing — and the most expensive mistake you can make if you don't understand it.
Here's how it works: when you take a deferred interest plan, interest is calculated and accruing on your balance every single month during the promotional period — you just don't see it yet because it's being deferred. If you pay your balance in full before the promotional period ends, that deferred interest is waived entirely. You pay nothing extra.
But if you have any remaining balance the day after the promotional period ends — even $1 — the entire amount of accrued interest is added to your balance at once. Not just interest going forward. All of it, retroactively, from day one.
You finance $2,000 on a 12-month deferred interest plan at 26.99% APR. You make minimum payments each month and have $200 left when the period ends.
You owe that $200 — plus approximately $540 in back-interest that was accruing all year. Your remaining balance jumps from $200 to $740 overnight.
The only way to avoid this: pay the entire balance in full before month 12 ends — not the day it ends, but before.
Deferred interest is not a scam — it's a legitimate financing structure used across many industries. But the terminology used to describe it ("no interest if paid in full") is easy to misread as "true 0% interest," which it is not. When reviewing your financing agreement, look specifically for the phrase "deferred interest" versus "0% APR." They are meaningfully different things.
Real Payment Examples by Term Length
Based on a $2,000 dental treatment financed through CareCredit. Approximate figures — actual payments depend on creditworthiness and plan availability.
| Plan | Term | Monthly Payment | Total if Paid Off in Time | Total if Not Paid Off |
|---|---|---|---|---|
| True 0% Promo | 6 months | ~$334/mo | $2,000 | Interest from that point forward only |
| True 0% Promo | 12 months | ~$167/mo | $2,000 | Interest from that point forward only |
| Deferred Interest | 18 months | ~$111/mo | $2,000 | ~$2,720+ (all back-interest added) |
| Deferred Interest | 24 months | ~$84/mo | $2,000 | ~$3,080+ (all back-interest added) |
| Fixed Installment | 24 months | ~$101/mo | ~$2,424 | N/A — no promotional period risk |
| Fixed Installment | 48 months | ~$58/mo | ~$2,784 | N/A — no promotional period risk |
| Estimates based on ~26.99% standard APR for deferred interest plans and ~14.9% APR for fixed installment plans. Actual rates vary by credit profile. | ||||
How to Choose the Right Term for You
The right repayment term depends on your balance, your monthly budget, and your confidence in paying off on time. Here's how to think through the decision.
- Balance under $1,500 + confident you'll pay it off fast: 6-month true 0% plan — pay the full balance divided by 6 each month
- Balance $1,500–$3,000 + stable income: 12-month true 0% plan — set monthly autopay at balance ÷ 12
- Larger balance or uncertain timeline: Fixed 24–48 month installment plan — predictable payments, no surprise interest
- Any plan where you might miss the payoff date: Avoid deferred interest — the back-interest penalty isn't worth the risk
- Emergency treatment, tight cash flow: Extended fixed term first, then pay extra when you can to reduce total interest
Financing at Best Dental
At Best Dental in Richmond, TX, we work with CareCredit to offer flexible financing that makes dental treatment accessible regardless of what your insurance covers. We also offer our in-house Dental Discount Plan which can reduce your treatment costs before financing even comes into play.
When a patient needs financing, our team walks through the available plan options with them — we explain the difference between deferred interest and true 0% plans, help you calculate what your monthly payment needs to be to pay off on time, and make sure you're choosing a term that fits your budget realistically, not optimistically.
We also offer in-house payment plans for qualifying patients. These are straightforward arrangements directly with our office — no credit check required, no third-party lender, no promotional period risk. Ask us about eligibility at your next appointment.
For a full overview of every payment option we accept — including CareCredit plans, extended installment financing, and our in-house arrangements — visit our financing page or give us a call and we'll walk you through the numbers before you commit to anything.
- CareCredit 6-month 0% interest: For balances paid in full within 6 months — ideal for smaller treatment costs
- CareCredit 12-month 0% interest: Most popular option — gives breathing room while keeping total cost at the treatment price
- CareCredit extended plans (24–60 months): Fixed monthly payments at reduced APR — for larger balances needing more time
- In-house payment plans: Direct arrangements with our office — ask about eligibility and terms at your appointment
- Dental Discount Plan: Reduces your treatment cost upfront before financing applies
Frequently Asked Questions
Common questions about dental financing repayment terms.
Our team walks every patient through their financing options clearly — no pressure, no confusion. We'll show you the numbers, explain the terms, and help you choose a plan that actually works for your budget.
