Pros and Cons of Credit Card Forbearance: Is It the Right Debt Relief Strategy for You?

You’re scared that you're going to miss your payment on your credit card bill. That’s never happened before, but this recent job loss is making a mess of your finances. Don’t panic — you can get temporary relief through credit card forbearance.  

You can request that your credit card issuer pause payments, reduce your interest rate or give you other relief, and if it agrees, it will give you some time to get your finances back on track. However, it’s only temporary and can help in the short term.  

Let’s take a look at whether the advantages outweigh the disadvantages of credit card forbearance.  

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Key Takeaways

• The pros and cons of credit card forbearance come down to short-term breathing room versus a balance that keeps growing: It can pause payments, reduce minimums, lower your APR or waive fees, but it doesn't erase what you owe.

• Requesting forbearance won't hurt your credit directly: There's no hard credit inquiry to ask, and if your issuer marks the account current, you avoid the delinquency a missed payment would cause.

• Interest usually keeps accruing — the biggest downside: Your balance can grow while payments are paused, which can raise your credit utilization and weigh on your score.

• It's never guaranteed, and the lender sets the terms: no law requires an issuer to offer forbearance; terms are decided on a case-by-case basis; and some lenders may freeze your card during the relief period.

• Best for a short, recoverable hardship: Forbearance fits a job loss or illness you expect to resolve within a few months — not chronic overspending or a hardship expected to last years.

• Weigh the alternatives first: With a good credit score or better, a 0% APR balance transfer card (typically 12 to 21 months) or a nonprofit credit counseling debt management plan may offer more lasting relief.

Summary generated by AI, verified by MoneyLion editors

What Is Credit Card Forbearance?  

Credit card forbearance, sometimes called a hardship program, is a tool that can give you breathing room to manage your finances. When you request a forbearance, the lender may agree to pause payments, reduce minimum payments, waive credit card fees or lower your annual percentage rate (APR).  

Your credit card debt isn’t erased, and once the relief period is over, your account resumes its original terms. During the forbearance, your balance may still grow because interest continues to accrue.  

A request for forbearance doesn’t guarantee you’ll get one. There’s no legal requirement for a lender to offer forbearance to a consumer. The terms of forbearance vary by issuer and are decided on a case-by-case basis.  

Pros of Credit Card Forbearance  

There are certain advantages to credit card forbearance. Keep in mind that forbearance doesn’t eliminate credit card debt; it postpones it. Here’s how you could benefit:  

1. No hard credit inquiry. A request for forbearance won’t impact your credit. There’s no hard pull on your credit.  

2. You get temporary relief. Your cash flow can be dedicated to other day-to-day expenses like groceries, utilities or housing.  

3. You buy time without penalty. You get some breathing room for your finances without jeopardizing your credit.  

4. You can avoid financial consequences. You avoid missing payments, late fees or penalty APRs.  

5. You avoid involving third parties. You can deal with the creditor directly without involving a company or other individuals.  

6. Your account stays current. No delinquencies will be noted on your account, you’ll be in good standing with the credit bureaus and your credit may be protected.  

Cons of Credit Card Forbearance  

A credit card forbearance is a temporary pause in payments to give you some flexibility in cash flow. It doesn’t necessarily address spending habits or mounting debt that’s out of control. It’s a momentary bridge to help you get back on track. You should be aware of the disadvantages of a credit card forbearance:   

1. You don’t eliminate debt. Once the temporary pause is lifted from your account, you’re still responsible for paying the debt. The debt is not erased or reduced.  

2. Interest still accumulates. You may put your payments on pause, but the interest doesn’t stop. The balance will grow even though payments are paused.  

3. The terms are up to the lender. Forbearance terms are decided by the lender. In some cases, these terms may not be favorable enough for you. You’ll have to decide whether a forbearance is right for your financial picture.  

4. You risk raising your credit utilization. Your balance may grow and may cause your credit utilization ratio to be elevated.  

5. Your credit card may be frozen. Some lenders may freeze your credit card. You’ll have to balance the pros and cons of requesting a forbearance and accessing your line of credit.  

6. The lender isn’t required to give you a forbearance. A forbearance isn’t guaranteed, so requesting a pause doesn’t necessarily mean your payment obligations will stop.  

When Credit Card Forbearance May Make Sense  

If you just need temporary relief to reassess your finances, a credit card forbearance may be a good fit for you. You’ll have to decide the source of your hardship and ask questions:  Are you not able to make payments because of a job loss or illness, or is your debt because of overspending? This distinction is critical because forbearance is temporary. Once the relief period is over, you’ll still have to comply with the original terms of the debt.  

Credit card forbearance is ideal if you expect your hardship to resolve within a few months and you expect to have a stable source of income. If you’re at risk of missing a payment and don’t want to impact your credit, you can request a forbearance to stabilize your cash flow. Missing payments isn’t ideal. Forbearance is generally preferable for both the lender and you to prevent delinquency on your account. 

When It May Not Be the Best Option  

If the real cause of your forbearance request is a hardship that’s expected to last months or years, forbearance may not be the appropriate action to take. If your account is so delinquent and damage has already been done to your credit, a forbearance is likely not the best choice for your financial picture. If you don’t expect a forbearance to offer real relief, meaning the accruing interest outweighs your savings potential, consider other options. 

Alternatives To Credit Card Forbearance  

If you decide that a credit card forbearance doesn’t work for your financial picture, it doesn’t mean you don’t have other options.  

If you have a good credit score or better, a balance transfer credit card is a realistic option for refinancing credit card debt. The best balance transfer cards typically offer a 0% APR for 12 to 21 months from the account opening date. As long as you can pay off the balance before the promotional period ends, you may not incur any additional interest.  

If you don’t know where to start with your finances, you could consult with a nonprofit credit counseling agency and come up with a debt management plan that works for your finances.   

Questions To Ask Your Credit Card Issuer Before Enrolling  

You don’t want to be caught off guard as you decide whether to ask your issuer for forbearance. Here are some key inquiries to help you decide:  

1. Does interest accrue on my account during the forbearance period? 

2. What’s the length of the forbearance period on my account? 

3. Will late fees and penalty charges be waived while the arrangement is in effect? 

4. Once the relief period ends, how will the deferred amounts be handled? Are these amounts added to the balance, due as a lump sum, or tacked onto the end of my repayment schedule? 

5. Will my minimum payment amount change once normal terms resume? 

6. How will my account be reported to the credit bureaus during and after the forbearance period? 

Bottom Line  

If you’re looking for temporary relief to adjust your finances or have a bridge until the next pay period, a forbearance request to your credit card issuer may work for you. It’s not a request to erase the debt, but a chance to delay or reduce payments without it being marked as a delinquency.   

Evaluate your financial picture to determine whether it’s a good fit for you. Before you enroll, understand the terms and make sure you’ve considered other alternatives.  

Credit Card Forbearance FAQs  

Does credit card forbearance hurt your credit?  

Typically, during a forbearance, your lender will mark your account current, so it doesn’t hurt your credit score. However, the growing balance (because interest still accrues) may increase your credit utilization and impact your credit.  

Does credit card forbearance forgive debt?  

No, forbearance doesn’t erase debt. You’re still responsible for paying what you owe.  

Is credit card forbearance better than missing a payment?  

Missing a payment can hurt your credit, so forbearance is almost always preferable to delinquency.  

Can I request a forbearance more than once?  

Whether or not you can get more than one forbearance depends on the lender.  

Can I use my credit card during a forbearance?  

Usually, the credit card issuer suspends the account during the forbearance.   

Key Terms

• Credit card forbearance: A temporary arrangement, sometimes called a hardship program, in which your issuer may pause payments, reduce minimums, lower your APR or waive fees. The debt isn't erased, and original terms resume when the relief period ends.

• Hardship program: Another name for forbearance — issuer relief offered case by case, with no legal requirement that a lender grant it.

• Annual percentage rate (APR): The yearly cost of borrowing on your card. Some forbearance arrangements temporarily reduce it, but your regular rate generally returns afterward.

• Credit utilization: The share of your available credit you're using. If interest pushes your balance higher during forbearance, your utilization can rise and may affect your score.

• Hard inquiry: A credit check that can temporarily lower your score. Requesting forbearance doesn't trigger one.

• Delinquency: A missed or late-payment status. Forbearance is generally preferable to a delinquency, which can damage your credit.

• Balance transfer card: A card that lets you move debt and pay 0% APR during a promotional window — typically 12 to 21 months — a forbearance alternative for those with a good credit score or better.

• Debt management plan: A structured repayment plan set up through a nonprofit credit counseling agency, one alternative to forbearance.

Sources

• CFPB: Need help with your credit card debt? Start with your credit card company! 

• CFPB: Credit card debt: relief options and tips

• CFPB: What is the difference between credit counseling and debt settlement, debt consolidation or credit repair? 

Summary generated by AI, verified by MoneyLion editors

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