What Bank of America's Hardship Program Does

Bank of America's hardship program is a set of options the bank offers to cardholders who cannot pay their credit card bill on time. The program does not erase your debt, but it may lower your monthly payment, reduce your interest rate, pause late fees, or extend your repayment timeline. You contact Bank of America directly to discuss your situation, and the bank decides what arrangement, if any, it will offer.

The program exists because credit card companies have financial incentive to keep you paying rather than defaulting entirely. A reduced payment you actually make is worth more to the bank than a full payment you cannot make. However, Bank of America is not required to offer you anything, and what you receive depends on your account history, income, and the reason for your hardship.

This is not a government program. It is a private arrangement between you and the bank. The terms you receive are negotiated with Bank of America's hardship team, not set by law.

Key Takeaways

  • Bank of America's hardship program requires you to call the bank and explain why you cannot pay your bill—job loss, medical emergency, or reduced income are common reasons.
  • The bank may offer a lower monthly payment, reduced interest rate, waived late fees, or a combination of these, but it makes the decision based on your account and circumstances.
  • You must be behind on your payment or reasonably expect to fall behind soon; the bank will not offer relief to accounts in good standing.
  • Any arrangement you reach will likely be reported to credit bureaus and will affect your credit score, though less severely than a default or charge-off.
  • The program is temporary—typically lasting 3 to 12 months—and you will return to your original terms or be required to pay off the remaining balance when it ends.

When to Contact Bank of America About Hardship

Contact Bank of America's hardship team as soon as you know you cannot make your regular payment. Do not wait until your account is 30 days late. The bank is more likely to work with you if you reach out before you miss a payment, though it will also negotiate with accounts that are already behind.

Common reasons the bank recognizes include job loss, medical emergency, divorce, death in the family, or a significant reduction in household income. You do not need to prove these with documents at the time of your call, but the bank may ask for verification later—such as a termination letter, medical bills, or recent pay stubs showing reduced hours.

If your account is current and you are straightforward worried about future payments, the bank may still listen, but it has less incentive to act. Many cardholders wait until they have already missed a payment before calling, which is still acceptable but puts you in a weaker negotiating position.

How to Reach Bank of America's Hardship Team

Call the customer service number on the back of your Bank of America credit card. Tell the representative that you are experiencing financial hardship and need to speak with the hardship or loss mitigation department. You may be transferred or asked to call a specific number for that team.

Have the following information ready: your account number, the reason for your hardship, your current monthly income (if you have any), your current monthly expenses, and the amount you can realistically pay each month. The bank will ask detailed questions about your situation to determine what options it can offer.

Be honest about your circumstances. The bank has access to your payment history and credit report, so misrepresenting your income or expenses will not help you. If you do not know exact figures, give your best estimate and offer to provide documentation later.

What Options the Bank May Offer

Bank of America typically offers one or more of the following arrangements, depending on your situation and account history:

  • Reduced monthly payment: The bank lowers your required payment for a set period, usually 3 to 12 months. You will still owe the full balance, but spreading it over more months makes each payment smaller.
  • Reduced interest rate: The bank may lower your APR temporarily, reducing the amount of interest you pay each month. This is often combined with a reduced payment.
  • Waived or reduced late fees: The bank may remove late fees already on your account or agree not to charge them during the hardship period.
  • Pause on collections activity: If your account is already in collections, the bank may pause collection calls and letters while you work out an arrangement.
  • Forbearance: In rare cases, the bank may allow you to skip one or two payments without penalty, though interest typically continues to accrue.

The bank will not offer all of these to every person. What you receive depends on how far behind you are, how long you have been a customer, your payment history before the hardship, and how much income you have to work with. A customer with 10 years of on-time payments who hits a temporary hardship will receive a better offer than someone with a history of late payments.

What Happens to Your Credit Score

Entering a hardship program will affect your credit score, but the damage is usually less than what happens if you default on the account. The exact impact depends on how the bank reports the arrangement to credit bureaus.

If your account is current when you enter the program, the bank may report it as "account in forbearance" or "hardship arrangement," which is less damaging than a late payment. If your account is already 30, 60, or 90 days late, those late payments are already on your credit report, and the hardship arrangement will not remove them—but it will prevent additional late payments from being reported while the arrangement is in place.

Once the hardship period ends, your account returns to normal reporting. If you have kept up with the reduced payments, no new late marks will appear. If you fall behind again after the program ends, late payments will resume being reported.

What Happens When the Hardship Period Ends

Hardship arrangements are temporary. When the agreed-upon period ends—typically 3 to 12 months—your account returns to its original terms. Your monthly payment goes back to the original amount, your interest rate returns to the original APR, and late fees resume if you miss a payment.

Before the hardship period ends, contact Bank of America to discuss what comes next. If your financial situation has improved, you may be able to resume regular payments. If you are still struggling, the bank may extend the arrangement, though this is not may provide. Some banks will offer one extension but not a second one.

If you cannot resume regular payments when the hardship period ends and the bank will not extend, your account may be charged off—meaning the bank writes it off as a loss and may sell the debt to a collection agency. This is more damaging to your credit than the hardship arrangement itself.

Alternatives to Bank of America's Hardship Program

If Bank of America denies your request or offers terms you cannot accept, you have other options. A credit counselor at a nonprofit credit counseling agency can review your situation and sometimes negotiate with creditors on your behalf. These agencies are often free or low-cost and can help you understand whether a hardship arrangement, debt management plan, or other strategy makes sense for your situation.

If you have multiple debts and your situation is severe, you may want to explore whether bankruptcy is an option. This is a legal process that can eliminate or restructure your debts, but it has serious long-term consequences for your credit and finances. Speak with a bankruptcy attorney before pursuing this route.

You can also straightforward stop using the card and focus on paying down the balance on your own terms, though this will result in late fees, interest charges, and credit damage if you miss payments. A hardship arrangement is usually better than this outcome because it gives you a structured path forward.

Frequently Asked Questions

Will Bank of America remove late payments from my credit report if I enter a hardship program?

No. Late payments that are already on your report will remain there. The hardship program prevents new late payments from being reported during the arrangement period, but it does not erase past ones. Late payments typically stay on your credit report for seven years from the date they first occurred.

Can I use my credit card while I am in a hardship program?

This depends on the terms of your specific arrangement. Some hardship programs freeze the account, meaning you cannot make new charges. Others allow you to continue using the card. Ask Bank of America explicitly whether you can use the card during your hardship period before you agree to the arrangement.

What if I cannot afford the reduced payment the bank offers?

Tell the bank when ready. Explain your actual situation and ask if a lower payment is possible. If the bank will not go lower, you may need to explore other options such as credit counseling, debt consolidation, or bankruptcy. Do not agree to a payment you cannot make—missing payments on a hardship arrangement is worse than not having one at all.

How long does a hardship arrangement typically last?

Most Bank of America hardship programs last between 3 and 12 months. The exact length depends on your situation and what the bank believes you need to stabilize. Ask the bank for the specific end date when you agree to the arrangement so you can plan ahead.

Can I negotiate the terms of the hardship program?

Yes, within limits. If the bank's first offer does not work for your budget, explain why and ask what else is possible. The bank has some flexibility, but it will not offer terms that make no financial sense to it. Be realistic about what you can pay and why, and the bank is more likely to work with you.