How to Negotiate a Lower Minimum Payment on a Credit Card

When it comes to paying credit card bills, millions of Americans are just scraping by. They make only the minimum monthly payment, and that’s often a stretch.

The good news is you probably can negotiate a lower minimum payment and avoid late fees and other penalties. Keep reading, and we’ll show you how.

The bad news is that you’ll pay more in interest charges. But a successful negotiation will buy you time to get out of the financial bind that leaves you scraping by each month.

What Is the Minimum Payment on a Credit Card

The minimum payment on your credit card is self-explanatory. It’s the least you must pay to stay in good standing with the credit card company.

If you don’t pay it, you’ll get hit with a late fee. If you continue to miss payments, late fees will keep piling up and the issuer might increase your interest rate.

If you don’t make the minimum payment for six months, the issuer will probably close the account and sell it to a debt collection agency, all of which will wreak havoc on your credit score.

If you’re living minimum-payment-to-minimum-payment, you are hardly alone. The Philadelphia Federal Reserve Bank reported that more than one out of 10 (10.75%) cardholders were making just baseline payments at the start of 2025.

That was a 12-year high, and financial experts expected it to get worse as inflation lingers.

“As pandemic-era savings have been run down and the job market has cooled, inflation has become more of a pressing challenge,” Wells Fargo economists said in a March 2025 report.

There is no standard industry-wide calculation for determining minimum payments, but it’s usually 1%-2% of your total monthly balance. The average credit card balance was $6,580 at the start of 2025, according to TransUnion. So, the minimum balance (before throwing in those varying interest rates and other charges) would have been $131.60.

The minimum payment could also be a set amount, typically between $25 and $40, if you have a low balance. Your payment amount can be found on your monthly billing statement. If you have trouble locating it, call the issuer’s help line.

And in case you’re wondering, you can make less than the minimum payment. It just won’t do you much good.

You’ll probably still be hit with a late fee. And if you don’t bring your account up to date within 30 days, it will go on your credit report.

How to Request a Lower Minimum Credit Card Payment

There are several ways to request a lower minimum payment. Call the issuer (the number should be on your credit card) or engage in an online chat. You could also schedule a face-to-face meeting if you’re dealing with a local bank or credit union.

How you meet isn’t as important as how you negotiate. You need to show that you are a responsible person who is caught in a money crunch.

Be prepared. Have your budget figures (income vs. expenses) handy. As odd as it sounds, your negotiating position might be better if you miss a payment or two.

That’s not advisable, since you’ll incur late fees, but it will indicate that you really can’t pay your credit card. And meeting with the issuer via phone, internet or in person will show you genuinely want to clean up your financial mess.

What to Expect

Almost every credit card issuer has a hardship program to help people struggling with credit card debt. The requirements and remedies vary, but here’s a look at how some of the largest companies go about their business.

Chase ($1.25 trillion in loans)

Document your financial situation and contact your issuer. Request a different monthly due date if it might help you make the minimum payment. You can also request a lower interest rate, though it might last less than a year.

American Express ($1.12 trillion)

Amex’s hardship program offers lower interest rates and lower monthly payments. But enrolling might impact your ability to use the card. Call Amex at 1-866-703-4169 or check your online account for contact details.

Capital One ($575.4 billion)

Capital One’s website says it has “a range of policies and programs to accommodate customer hardships.” The exact one varies from case to case, of course. If you’re wondering what Capital One has in mind for you, call 1-800-227-4825.

Bank of America ($494 billion)

If you’re struggling to make a payment, Bank of America’s website says, “it is in all our interest to get it resolved.” The number to call is 855-891-3401 or go to the website. “The earlier you contact us the sooner we can work together to come up with a solution,” the website says.

Alternative Options to Help Lower Your Minimum Payment

Let’s presume you’ve contacted the credit card issuer. You’ve spilled your financial guts to the stranger on the other end of the phone line or computer screen.

You’ve asked for a lower minimum payment. For whatever reason, y’all could not come to an agreement.

Don’t panic. There are other ways to ease your credit card hardship.

Balance Transfer Cards

Transferring your debt to a new card is a time-tested way to temporarily escape payment problems. Key word: Temporarily.

A new card almost always offers zero-interest introductory rates. If it’s not a balance transfer card, there’s really no good reason to sign up for it.

The upside is you’ll get a lower minimum payment by paying no interest for the introductory period (usually 12-18 months).

The downside is you’ll pay a balance transfer fee of 2%-5%. And your interest rate skyrockets when the introductory period ends, so you’d better pay off the balance by then.

Credit Counseling

Sometimes, all you need is some good advice and a lot of motivation to resolve your problems. Nonprofit credit counseling agencies like InCharge Debt Solutions have certified counselors who can look at your financial situation and offer guidance.

They may advise a debt management plan, which consolidates your debt at a lower interest rate. It can be harsh medicine if you’re addicted to spending, but it might be just what you need to escape your credit card nightmare.

Credit Card Debt Settlement

With debt settlement, you negotiate to pay less than you owe in one lump sum. You can try to negotiate the deal yourself, though most people rely on a third-party debt settlement company.

Debt settlement provides instant relief from the monthly payment headache. But it has tax implications and will be a huge black mark on your credit report for seven years. It could knock your credit score down by 100 points or more.

Only Lower Your Minimum Payment If You Need To

The bottom line is that if you want to get a lower minimum payment, you can probably get it. Credit card companies want to keep customers and can be understanding and accommodating.

They are not just driven by altruism. They make a killing on interest charges, and a customer who makes only minimum payments is like an indentured servant.

Most of your payment goes toward interest charges and will barely make a dent on your principal balance. You’re like a gerbil running on a financial wheel that doesn’t get you anywhere.

Making only minimum payments will avoid late payments but could still hurt your credit score. Interest charges could increase your overall balance and impact your credit utilization, which accounts for 30% of your FICO credit score.

Credit bureaus will penalize you if your utilization is more than 30%. For instance, if you have a $5,000 balance, you’d need to keep your balance below $1,500. That’d be harder to do if you’re paying as little as possible each month to credit card companies.

The best strategy is to negotiate a lower minimum payment if you must but develop a long-term strategy that will get you off that gerbil wheel once and for all. Just scraping by every month is no way to go through life.