If you're struggling to make credit card payments due to a job loss, medical emergency or other financial setback, calling your card issuer might be the last thing on your mind. But it may be one of the most useful calls you make.
Many credit card issuers offer hardship programs, which are temporary arrangements that can lower your interest rate, reduce your monthly payment or waive fees while you stabilize your finances. Here's how they work, what to watch out for and other alternatives to consider.
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What's a credit card hardship program?
A credit card hardship program is a short-term repayment arrangement offered by some issuers to customers going through genuine financial difficulty. When you enroll, your lender might reduce your monthly payments, lower your interest rate or waive fees for a set period, usually from a few months to a year.
Not all credit card issuers offer hardship plans, and those that do generally don't advertise them outright, so you'll need to ask directly. That said, several major issuers do have some sort of assistance programs available, including:
- American Express
- Bank of America
- Chase
- Citibank
- Discover
- U.S. Bank
- Wells Fargo
Who qualifies for a hardship program?
There's no universal eligibility standard to qualify for a hardship program. These programs are generally reserved for cardholders who face financial setbacks, which can include job loss, lowered income, medical bills, natural disaster or caregiving responsibilities.
Issuers evaluate requests case by case, and your odds improve if you can demonstrate that the hardship is temporary and that you'd be able to resume normal payments with some short-term relief.
How to enroll in a hardship program
Enrolling in a hardship program is as simple as calling the customer service number on your credit card and explaining your situation to a representative. But going in prepared will help.
Before you call:
- Know your numbers: Have a clear sense of what you can actually afford to pay each month.
- Gather documentation: You may be asked to provide pay stubs, divorce papers, medical bills, bank statements or other proof of financial difficulty.
- Know what to ask for: Make a specific request, such as a temporary APR reduction or a fixed lower payment for six months, rather than leaving it entirely open-ended.
Also, try to negotiate and make sure you understand the options the issuer offers. Get the terms in writing, including the rate, payment amount and duration. Monitor your statements to ensure the account is adjusted as promised.
What are the tradeoffs of a hardship program?
Hardship programs can offer real breathing room, but they come with a couple important caveats:
- Your account may get frozen: Your account could be frozen while you're enrolled to restrict usage, and your participation might appear on your credit report. A frozen or closed account can raise your credit utilization rate, which accounts for roughly 30% of your credit score and can potentially ding your score in the short term.
- It's only temporary: These programs are designed to buy you time, not eliminate your debt. If your financial difficulty is longer-term, you'll need a broader plan.
Alternatives to consider
If a hardship program isn't available through your issuer or doesn't go far enough, there are other options.
Balance transfer card
A balance transfer card lets you move existing high-interest debt onto a new card that offers a 0% intro APR for a set period, which can be anywhere from 12 to 21 months. During that window, every payment you make goes directly toward your principal rather than interest, which can significantly speed up repayment. However, you'll usually need good to excellent credit to qualify, and most cards charge a balance transfer fee of 3% to 5% of the amount moved over.
Here are some of CNBC Select's top-ranked balance transfer cards, all offering at least a 15-month interest-free introductory period for paying off your debt:
The Citi Simplicity® Card has amazing intro-APR offers and is particularly valuable for balance transfers due to its lower introductory fee.
- Long intro APR offers for balance transfers
- Low intro-fee for balance transfers
- No annual fee
- No rewards
- No welcome bonus
The Wells Fargo Reflect® Card is one of the absolute best cards you can apply for if you want to save on interest and pay down debit quickly thanks to its extra generous intro-APR offer on purchases and qualifying balance transfers.
- Incredible intro-APR for purchases and qualifying balance transfers
- No annual fee
- Cell phone insurance: up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible
- No rewards
- No welcome bonus
- High balance transfer fee
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Apply Now to take advantage of this offer and learn more about product features, terms and conditions.
- 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. 17.74%, 24.24%, or 28.49% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate, BT fee of 5%, min: $5.
- $0 annual fee.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
- Through My Wells Fargo Deals, you can get access to personalized deals from a variety of merchants. It's an easy way to earn cash back as an account credit when you shop, dine, or enjoy an experience simply by using an eligible Wells Fargo credit card.
Balance transfer fee
5%, min: $5
Foreign transaction fee
3%
The Capital One Quicksilver Cash Rewards Credit Card has no annual fee, cash-back rewards and a generous intro-APR offer, which make it a great option for saving on interest while earning rewards.
- No annual fee
- Low spending requirement for the welcome bonus
- The 3% balance transfer fee is valid for the first 15 months your account is open
- No foreign transaction fee
- Few notable ongoing perks
- No bonus rewards categories
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening
- Earn unlimited 1.5% cash back on every purchase, every day
- $0 annual fee and no foreign transaction fees
- Earn unlimited 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel
- No rotating categories or sign-ups needed to earn cash rewards; plus, cash back won't expire for the life of the account and there's no limit to how much you can earn
- 0% intro APR on purchases and balance transfers for 15 months; 18.49% - 28.49% variable APR after that; balance transfer fee applies
- Top rated mobile app
Balance transfer fee
- 3% for the first 15 months; 4% at a promotional APR that Capital One may offer you at any other time
The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome bonus. Plus, if you pair it with a premium Chase credit card that allows point transfers, you can convert your cash back into flexible travel rewards.
- Users get a high rewards rate and strong welcome bonus
- Purchases and balance transfers receive an intro APR
- No annual fee
- Has a foreign transaction fee
- Few rewarding ongoing benefits
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
- Enjoy 5% cash back on travel purchased through Chase TravelSM, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases.
- No minimum to redeem for cash back. You can use points to redeem for cash through an account statement credit or an electronic deposit into an eligible Chase account located in the United States!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.24% - 27.74%.
- No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, in the first 60 days. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3% of each transaction in U.S. dollars
The Blue Cash Everyday® Card from American Express has no annual fee and bonus rewards on a wide range of common expenditures. On top of that, you also have access to an intro-APR offer for purchases and balance transfers. So this card can help you save in a variety of ways.
- Up to $264 in streaming service and meal kit credits every year (subject to auto renewal)
- High cash-back rates in popular spending categories
- No annual fee
- The best bonus cash-back categories are capped
- Has a foreign transaction fee
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Apply and find out your welcome offer. As High As $200 cash back* after you spend $2,000 in purchases on your new Card within the first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply, and if approved: 1. Find out your offer amount 2. Accept the Card with your offer 3. Spend $2,000 in 6 months 4. Receive the cash back. *Cash back is received in the form of Reward Dollars that can be redeemed for a statement credit or at Amazon.com checkout.
- No Annual Fee.
- Enjoy 0% intro APR on purchases and balance transfers for 15 months from the date of account opening. After that, your APR will be a variable APR of 19.74%-28.74%.
- Earn 3% cash back at U.S. supermarkets, 3% cash back on U.S. online retail purchases, 3% cash back at U.S. gas stations, on eligible purchases for each category on up to $6,000 per year in purchases (then 1%). Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
- Get up to a $7 monthly statement credit after using your enrolled Blue Cash Everyday® Card for a subscription purchase, including a bundle subscription purchase, at DisneyPlus.com, Hulu.com, or Stream.ESPN.com U.S. websites. Subject to auto-renewal.
- Terms Apply.
- See Rates & Fees
Balance transfer fee
Either $5 or 3% of the amount of each transfer, whichever is greater.
Foreign transaction fee
2.7% of each transaction after conversion to US dollars
Debt consolidation loan
A debt consolidation loan is a personal loan used to pay off multiple credit card balances at once, rolling them into a single fixed monthly payment — ideally at a lower interest rate than what you're currently carrying. This can help simplify repayment and reduce the total interest you pay over time. Borrowers with good credit are more likely to secure better rates, but there are also options for those with fair credit. Unlike a hardship program, this is a longer-term commitment so it's worth comparing lenders and running the numbers before committing.
If you're not dealing with a massive balance, Upstart offers loans as small as $1,000 and looks beyond your credit score when evaluating your application, factoring in things like work experience and education. This is a great option if you don't have a long credit history but are otherwise in a stable position.
We like that Upstart considers factors besides credit score, including education, income and employment history. However, co-signers aren't accepted.
- Accept applicants with bad or no credit
- Minimum APR is lower than many competitors'
- Approves personal loans up to $75,000
- Most loans are funded the next business day
- Origination fee of 0% to 10%
- Doesn't allow co-signers or co-borrowers
If flexibility in repayment is your priority, Achieve lets you choose from 2-, 3-, 4- or 5-year repayment plans so you can match your monthly payment to what your budget can actually handle. Achieve also rewards borrowers who go all-in on consolidation. You can earn a rate discount if at least 85% of your loan funds go directly to creditors, with additional reductions available if you bring on a qualified co-borrower or can show proof of sufficient retirement funds.
If you don't have excellent credit, Achieve is a good option — it accepts borrowers with bad credit, as well as applicants with co-borrowers or co-signers, which can help improve the odds of approval and favorable rates. If you don't need a large loan, however, Achieve's $5,000 loan minimum may mean you need to look elsewhere.
- Works with borrowers with 560 FICO Score.
- Allows co-borrowers.
- Rate discount available for direct creditor pay-off.
- Charges an origination fee.
- Cannot use collateral
- Loans are not available in all states
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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For rates and fees of the Blue Cash Everyday® Card from American Express, click here.
