On this page
What Is a Credit Card Hardship Program?
A credit card hardship program is a temporary arrangement offered by some issuers when a cardholder faces financial strain. It may include temporary payment relief, reduced interest rates, waived fees, or modified payment schedules based on your circumstances.
Hardship terms are generally negotiated directly with your creditor and can vary by account, history, and current ability to pay.
How Credit Card Hardship Plans Work
- Contact your creditor: ask whether a hardship plan is available for your account.
- Financial review: the creditor may request income, expenses, and details about your hardship.
- Temporary modified terms: if approved, you may receive adjusted payments, rates, or fees for a limited period.
- Ongoing monitoring: creditors may review progress and update terms as your situation changes.
Who May Qualify
- Recent income reduction.
- Medical hardship.
- Temporary unemployment.
- Emergency expenses that disrupt normal payments.
Pros and Tradeoffs
Potential benefits:
- Temporary relief while stabilizing finances.
- May help avoid immediate default.
Potential tradeoffs:
- May affect your credit profile depending on reporting.
- May not reduce principal balance.
- Most hardship terms are temporary and may expire.
Alternatives to Hardship Plans
- Debt management plan (DMP).
- Debt settlement programs.
- Consolidation loans.
- Bankruptcy consultation.
Related reading: debt settlement programs and debt management plan (DMP) FAQs.
Common questions
Do hardship programs lower interest?
Some creditors may reduce your interest rate during a hardship period, but terms vary by issuer and account history.
Does hardship affect credit score?
A hardship plan can still affect your credit depending on how the account is reported, payment history, and whether balances remain high.
How long does a hardship plan last?
Many hardship plans are temporary, often lasting several months to about a year, with periodic review by the creditor.
Can late fees be waived?
Some creditors may waive certain late fees or penalties during hardship, but fee decisions are case-by-case.
What if hardship is denied?
If a hardship request is denied, you can ask about other payment arrangements and compare alternatives like counseling, settlement, consolidation, or bankruptcy consultation.
Do I negotiate directly with my creditor?
Yes. A credit card hardship plan is typically arranged directly with the creditor after a review of your current financial situation.
Get started
Reviewing your situation can help clarify whether a credit card hardship program or another debt relief path fits your needs.
Your information is confidential and requesting a review is no obligation.