How it works?
Do Hardship Programs Affect Your Credit Score?
Get help managing your credit card debt through hardship programs designed to provide financial relief when you need it most.
Do Hardship Programs Affect Your Credit Score?
Credit card hardship programs are valuable tools that can help you navigate financial difficulties. Understanding how they work and what to expect can help you make informed decisions about your debt relief options.
Common Questions About Hardship Programs
Do hardship programs affect your credit score?
Yes, enrolling in a hardship program may be reported to credit bureaus and could temporarily lower your credit score. However, this impact is typically less severe than defaulting on your debt or filing for bankruptcy. The reporting varies by issuer.
How long do hardship programs last?
Most hardship programs last between 6 to 12 months. Some issuers may extend the program if your hardship continues, but you'll typically need to reapply and demonstrate ongoing need.
Can you use your card while in a hardship program?
Usually, no. Most hardship programs require your account to be closed or frozen to new purchases. This helps ensure you're paying down the existing balance rather than accumulating more debt.
What if I can't complete the hardship program?
If you can't maintain the reduced payments, contact your issuer immediately. You may need to explore other options like debt settlement, credit counseling, or in severe cases, bankruptcy.
Comparing Your Options
| Option | Credit Impact | Best For |
|---|---|---|
| Hardship Program | Moderate | Temporary financial difficulty |
| Debt Settlement | Significant | $10,000+ in debt, unable to pay full amount |
| Credit Counseling | Minimal | Need help budgeting and managing payments |
| Balance Transfer | Positive | Good credit, manageable debt amount |
Compare Top Debt Relief Companies
If you have over $10,000 in unsecured debt, these companies can help you reduce what you owe and get back on track financially.
| Company | Customer rating | Our pick for | Debt minimum | Maximum fee | Settlement timeline | Year founded | |
|---|---|---|---|---|---|---|---|
  | Best overall | $10,000 | 25% of debt | 12 to 48 months | 2009 | Get Started | |
 | Low fees | $10,000 | 25% of debt | 24 to 48 months | 2002 | Get Started | |
 | 3.7 | Small debts | $10,000 | 25% of debt | 24 to 48 months | 2016 | Get Started |
 | Customer service | $10,000 | 25% of debt | 24 to 48 months | 2011 | Get Started |
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