Your Guide to Negotiating your Way to Credit Card Savings
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.
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