Credit card company assistance programs.
All credit card companies offer assistance to their customers. As at the of a day a lender wants a customer to pay off their balance (or as much of it as possible) as that really helps the bank or credit card issuer as well. As the alternative is the customer filing bankruptcy or the debt going to collections, which a bank/lender does not benefit from as much. Find details below on the most common credit card company assistance programs that people can get help from.
The assistance programs can help borrowers, including those with low FICO scores or bad credit, reduce and maybe even eliminate balances. Almost all the major lenders including Capital One, Bank of America, Chase, Synchrony and others offer some type of financial hardship program. Solutions can be a debt management or settlement plan, refis, and other form of relief. While each bank, credit union or credit card company will offer their own resources and they will come with different terms, there are options available for people impacted by a medical emergency, job loss, personal issue such as divorce or countless other challenges.
Types of assistance provided directly by a credit card company
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Credit card companies will often defer payments or suspend fees for struggling families. Most bank and lenders will allow the customer to skip a payment or put a future, upcoming payment on a “hold status” for a defined period of time. This in effect is a payment deferral. It is often offered as an emergency solution when there is a financial crisis, natural disaster, furloughed jobs, or some other unusual circumstances. The point is to provide the borrower more time to get back on track.
- Most credit card companies will send customers a letter notifying them that the past due fees and other charges that may be due for the current month will be suspended or partially eliminated. While terms and conditions vary, most banks waive these fees only if the customer makes at least one payment on their account and has a overall positive history of making payments in the past. Read more on credit card companies payment deferrals.
Credit card companies including Chase, Synchrony and others provide what is known as hardship assistance to low to moderate income families that are going through a short term crisis. The credit card issuer will offer solutions as part of a hardship plan, including temporary rate reductions, to bring an account current status while reducing the total debt due from the customer.
- This assistance can help someone keep their account in good standing and help reduce fees or other costs. Note these solutions go by many names, including hardship programs but when seeking help tell a credit card company / bank that you are facing a “hardship”. Read more on credit card hardship.
Other support, such as settlement, may be given by a bank or online credit card company. It is a form of assistance to pay the debt that is in arrears and the process benefits both the credit card company as well as the customer. This is similar to a hardship plan but it often writes off all the credit card debt due if a one-time, minimal payment is made by the borrower. More credit card companies are pro-actively settling credit card debts.
Each bank or credit card issuer provides low-income assistance programs as well. Find a bank credit card assistance program below for more details, including phone numbers to apply.
Credit card company programs offered in partnerships with non-profits
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Non-profit credit card counselors offer assistance, often for free. Many of the national agencies, such as MMI, have relationships with banks and lenders - the counselors in effect parnter with the credit card company and the customer to find a solution that is “win-win”. There are non-profit organizations that provide free phone consultations or online chat sessions to low-income families or people with questionable credit. The counselors work out payment plans, debt management programs, show customers ways to improve credit scores and more directly with any creditors.
- Non-profit credit counselors often have extensive experience in working with the major lenders including Capitol One, BofA, Citibank, Synchrony and others. They help all borrowers, regardless of their income, get help with their credit card debts and other loans, with low income families often getting free assistance. Find how to get assistance from a credit counselor.
Some government programs help debtors. This is also for people in a hardship, such as borrowers recovering from a natural disaster, a financial crisis, or those on unemployment. Learn more about federal and state programs that offer consumers credit card assistance. More on government help with debt.
Keys in how to get assistance from a credit card company
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Negotiate with a credit card company. There are many people who try to make the negotiate a minimum payment on their monthly credit card bills yet they unfortunately find that they are unable to even due that. To help with this issue, some credit card companies, including discover and JP Morgan Chase, will often negotiate a smaller minimum monthly payment that these consumers can afford to pay on a monthly basis.
- Negotiating can be scary / misleading for some people, but with the availability of emails, online chats, etc. the process can be less stressful. Call or chat with your bank or lender and ask if your minimum payment can be lowered. This involves negotiating an assistance program that works for the borrower and lender. Find additional ways to negotiate debt.
 Be pro-active as communication and persistence is key. In general, in order to get assistance with past due credit card debt or fees that are due, people need to try multiple options and keep asking them for solutions. It involves communication with a credit card company, asking for a manager or supervisor at the bank/lender, escalating your request and other options. Learn more about how to enter into a plan for credit card assistance.
Use experts tips and advice in dealing with a credit card company. Different credit card companies, banks and creditors (as indicated on this page and site) may different types of assistance, some of which are more readily accessible than others. Borrowers need to put the time and effort into. There are other steps that can be taken too. Also, find out about additional programs for tips to pay off credit card debt.
Conclusion - All credit card lenders offer some form of help
These credit card assistance programs are designed with consumers who are experiencing a true financial hardship or emergency. Every single bank or lender will have some type of plan to offer its low-income customers or people in arrears. However borrowers need to ask for help and also take action to get back on track as any assistance from a credit card company is often combined with other support services, such as budgeting help.
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