Credit Card Quick

Your Guide to Negotiating your Way to Credit Card Savings

Introduction

Do you feel “stuck” with a particular credit card? Is the thought of changing credit cards and applying for new credit cards send you into fits of anxiety? Do you love the rewards on your credit card, but the interest rate is just too high for your liking?

If you answered “yes” to any of the above questions, then you need to consider the many ways you can save on the credit card you already have, simply be negotiating with your credit card company.

Before you can begin negotiating with your credit card company, you need to understand that, in order to have any leverage, you must have a good history with your credit card company and a great credit score. Without these things, you may not have the leverage needed to negotiate better terms.

Here’s what you may be able to negotiate on your current credit card account:

• A credit card rate hike – Thanks to the current credit card legislation, consumers are able to say no to rate hikes. Once you say no to a rate hike, you either have the option of paying off your debt with your current interest rate and cancelling the card, or negotiating a better rate with your credit card company. If you have a good credit history with the credit card company, you may likely have some leverage when it comes to keeping your credit card interest rate low. Beware, though, as you have only between 30 and 60 days to let the creditor know you are disputing the credit card rate hike.
• Other fees – As a good credit card customer, you may be able to negotiate a number of fees with your credit card company, such as annual fees, balance transfer fees or even late charge fees. For example, if your credit card company charges an annual fee and you ask them to drop the fee, they will likely do so because you have a proven track record of being a great credit card customer.
• A lower APR – In addition to avoiding rate hikes, you may also be able to lower your current interest rate. Take a look at some of the current credit card interest rates before you contact the credit card company. Then contact the company and let them know that you are requesting a lower rate based on some of the current interest rates. If you don’t have any luck, you may also want to threaten to cancel the card unless the rate is lowered, as many credit card companies won’t bite until you pull out this strategy.

Can you Negotiate Different Payment Terms with your Creditor?

Credit Repair

Are you one of the millions of people that have been unpleasantly surprised by higher interest rates and larger minimum monthly payments? Are you worried about falling behind on your credit card payments? Are you struggling to pay the minimum payment every month?

If so, then it may be time to consider contacting your credit card company and asking them for payment assistance with your credit cards. Often times, a creditor will respond positively to a customer who recognizes a problem and chooses to deal with it before it gets out of hand. In other words, dealing with your debt problems head on instead of ignoring your mounting debt is not only better for you, but also better for your creditors.

But will your creditor bite?

Maybe and maybe not. There are some credit card companies who simply will not negotiate different payment terms for your credit card bill, while others will work with you to find a plan that will suit both parties. The only way you can find out how your creditor will respond to your request is to simply ask them. After all, you really don’t have anything to lose except a lot of worry over your debt load.

How to Negotiate Changes for your Credit Card Debt:

• Don’t wait until you fail to pay your credit card bills to ask for assistance; instead, make every effort to cover your card’s minimum payment so that you can show good faith on your part. Your creditor will be more willing to negotiate with a customer that has a strong payment history.
• Document all contact you have with your credit card company, including dates and times of phone calls and names of representatives you talked to. Then, ask for a written agreement from your credit card company that details the terms of your new agreement.
• If your credit card company is unwilling or unable to assist you with coming up with more reasonable repayment terms regarding your credit cards, you should seek help through a nonprofit consumer debt agency, who can help you find ways to manage your debt.