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

Credit card forbearance is a short-term agreement with your card issuer that lets you pause or reduce your minimum monthly payments during a financial hardship. It is not debt forgiveness — interest often keeps adding up, and you still owe the full balance when the pause ends.

Americans owed $1.26 trillion in credit card debt, according to the Federal Reserve Bank of New York’s Household Debt and Credit Report for the second quarter of 2026. With balances at record highs, more cardholders are turning to hardship options, such as forbearance, to stay current.

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If you lost a job, had a medical emergency or hit a rough patch, forbearance can give you room to breathe while you get back on your feet.

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Key Takeaways

• What is credit card forbearance? A short-term deal with your issuer to pause or reduce payments during hardship: It's relief, not forgiveness — you still owe the full balance.

• Interest usually keeps accruing: Your balance can grow while payments are paused, so the pause has a real cost.

• Requesting it won't trigger a hard inquiry: Asking for forbearance doesn't pull your credit or directly lower your score.

• It can keep your account current: Reported as current, it may protect your credit and help you avoid late fees and default.

• It's not guaranteed: Issuers aren't required to offer forbearance, and terms are set case-by-case, per the CFPB.

• Most plans run one to six months: Some issuers extend to 12 months for bigger setbacks like job loss or a disaster.

Summary generated by AI, verified by MoneyLion editors

Credit Card Forbearance at a Glance

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.  

Most credit card forbearance plans last one to six months, though some issuers extend relief up to 12 months for bigger hardships like job loss or a natural disaster. The exact length depends on your issuer, your account history and the reason you asked for help

A request for forbearance doesn’t guarantee you’ll get one. Credit card issuers are not required to offer forbearance, according to the Consumer Financial Protection Bureau (CFPB) — it is a voluntary hardship option, and terms are set on a case-by-case basis.

How To Request Credit Card Forbearance in 4 Steps 

1. Call your card issuer: Use the number on the back of your card to reach the hardship or customer assistance team.

2. Explain your hardship: Be honest about what changed — job loss, medical bills, reduced hours — and how long you expect it to last.

3. Ask about the terms: Find out how long the pause lasts, whether interest keeps building, if fees are waived and how the account is reported to the credit bureaus.

4. Get the agreement in writing: Ask for an email or letter that lists the start date, end date and any conditions before you accept.

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: The Federal Trade Commission (FTC) notes that most credit card forbearance plans still charge interest during the pause, which means your balance can grow even while payments are on hold. 

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, elevating your credit utilization ratio.  

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 you and the lender 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.  

Forbearance vs. Other Debt Relief Options

Note: Forbearance and hardship program often mean the same thing at most major issuers. The name can change from one bank to the next, but the goal is the same — short-term relief while you get back on track.

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 score?  

Forbearance itself does not directly hurt your credit score. But if your issuer reports the account as past due or in a special payment plan, lenders may see it as a warning sign. Ask how the account will be reported before you agree.

Does interest keep adding up during forbearance? 

Yes, in most cases, interest continues to accrue during forbearance. A few issuers may pause or lower interest as part of a hardship program, but this is not the norm — always ask before you sign on.

How long does credit card forbearance last? 

Most forbearance plans run one to six months. Some issuers may extend the term for greater hardship, but you will need to reapply or renegotiate once the initial term ends.

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 still use my credit card during forbearance? 

Usually no — most issuers freeze the account during forbearance. You can keep making purchases only if your issuer allows it in writing, so confirm the terms before you plan any spending. 

Are credit card issuers required to offer forbearance? 

No, credit card issuers are not required to offer forbearance. It is a courtesy program, and each issuer sets its own rules on who qualifies and for how long, according to the Consumer Financial Protection Bureau (CFPB).

Key Terms

• Credit card forbearance: A temporary issuer agreement to pause or reduce payments during a financial hardship.

• Hardship program: Another common name for forbearance — many issuers use the terms interchangeably.

• Annual percentage rate (APR): The yearly cost of carrying a balance, which usually keeps accruing during forbearance.

• Credit utilization: The share of your available credit in use, which can rise if your balance grows while paused.

• Delinquency: A missed or late payment reported to the bureaus — what forbearance can help you avoid.

• Debt management plan: A nonprofit-arranged plan combining debts into one lower monthly payment.

• Balance transfer: Moving debt to a new card with a 0% intro APR for a set period.

• Hard inquiry: A credit check from applying for new credit — not triggered by a forbearance request.

Sources

• Federal Reserve Bank of New York: Household Debt and Credit Report 

• CFPB: Options if you can't pay your credit card bills 

• FTC: Credit card debt relief and your options 

Summary generated by AI, verified by MoneyLion editors

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