His Credit Card Issuer May Cut His Interest Rate Through a Hardship Program. He Has to Call and Ask
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Many credit card issuers run hardship programs for cardholders facing setbacks such as a medical bill. They can temporarily lower the interest rate, waive fees, or reduce the minimum payment, but issuers don’t always advertise them, so cardholders usually have to call and ask.
Carrying a balance costs a lot right now, especially when the average interest rate on credit card plans at commercial banks was 21.19%[1] as of August 2026. The share of card balances at least 30 days past due stood at 2.85%[2] in the April 2026 reading.
What a Credit Card Hardship Program Can Change
A hardship program is a short-term deal between a cardholder and the card company. Depending on the issuer, it can include a lower APR (the annual interest rate charged on the balance), smaller payments, interest-only payments, or a temporary pause, according to the nonprofit counseling agency MMI. The programs go by many names, including “payment arrangements,” “customer assistance programs” and “reduced interest rate program,” and they’re typically available only by request. The full balance is still owed, and interest can keep building at the reduced rate.
Federal Law Already Plans for These Deals
Hardship deals have a specific place in federal lending law. Under 15 U.S.C. § 1666i-1, card companies generally can’t raise the rate on an existing balance. Subsection (b)(3) carves out an exception for “the completion of a workout or temporary hardship arrangement.” When the program ends, or if the cardholder breaks its terms, the rate can go back up, but it can’t exceed the rate that applied before the arrangement began. The issuer also has to give “clear and conspicuous disclosure of the terms of the arrangement” before it starts.
The CFPB (Consumer Financial Protection Bureau) has said that “many creditors may be willing to help if you’re facing a financial emergency” and that cardholders don’t need to be behind on payments to ask for help.
Who Usually Qualifies and Who May Not
Issuers review requests one at a time. Common qualifying setbacks include job loss, reduced income, medical expenses, natural disasters, and family changes such as divorce or caregiving, according to U.S. News & World Report. Not every card issuer offers a hardship program. Proof, such as recent pay stubs, an unemployment letter, or medical bills, can support a request. Someone with no financial setback who just wants a cheaper rate is asking for something different, and a hardship program may not apply.
How the Request Usually Works
- The process usually starts with a review of income and expenses. The CFPB suggests deciding how much you can afford to pay before calling.
- Calls are typically placed before a payment is missed. The CFPB says to explain why you can’t pay the minimum, how much you can afford, and when you could restart normal payments.
- Cardholders can ask about hardship or payment assistance programs by name. Useful follow-up questions cover the new rate, how long it lasts, which fees are waived, whether the card is frozen, and how the account will appear on credit reports.
- You can request the terms in writing before agreeing. Federal law already requires the issuer to disclose them before the program starts.
Trade-Offs That Come With a Lower Rate
Enrollment often affects the card itself. U.S. News reported that cardholders should expect the account to be frozen while enrolled, and one attorney it quoted said: “most credit card hardship programs will close the credit card account and lower the interest rate.” A frozen or closed card, or a lower limit, cuts the available credit on a credit report. That can affect credit scores, and issuers differ in how they report these programs.
Federal rules also let an issuer raise the rate once a minimum payment is more than 60 days past due[3]. Because the post-program cap points back to the rate in place when the program began, any penalty rate already applied becomes the ceiling. Calling early keeps the original rate as that benchmark.
Other Options if the Card Company Says No
Nonprofit credit counseling is another path. Under a debt management plan, you make one monthly payment to the counseling organization, which then pays your creditors[4]. Counselors can’t erase debts and can charge fees[4]. The CFPB suggests asking whether you’ll be charged, how much, and what services you’ll get before signing up.
The CFPB has also addressed for-profit debt settlement firms. The CFPB flags any company that charges fees before settling debts, guarantees it can make unsecured debt go away, or tells you to stop communicating with creditors. Settling a card balance yourself, sending goodwill letters to remove late-payment marks, and avoiding payday loans are related options, each with its own trade-offs.
Cardholders can open the call with one question: “Do you have a hardship program?”
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David Beren has been a Flywheel Publishing contributor since 2022. Writing for 24/7 Wall St. since 2023, David loves to write about topics of all shapes and sizes. As a technology expert, David focuses heavily on consumer electronics brands, automobiles, and general technology. He has previously written for LifeWire, formerly About.com. As a part-time freelance writer, David’s “day job” has been working on and leading social media for multiple Fortune 100 brands. David loves the flexibility of this field and its ability to reach customers exactly where they like to spend their time. Additionally, David previously published his own blog, TmoNews.com, which reached 3 million readers in its first year. In addition to freelance and social media work, David loves to spend time with his family and children and relive the glory days of video game consoles by playing any retro game console he can get his hands on.
