Negotiate Like a Pro to Get a Better Credit Card Deal

Credit card negotiations are not just reserved for the rich and famous. You too can barter with your lender to get a better deal, especially if you are a long-term customer. It won’t always work in your favour, but asking doesn’t cost you nothing.

Many people don’t realise that entering into credit card negotiations with your creditors can help to reduce interest rates, arrange payment plans and figure out ways to get a better deal.

You should also find that if your accounts are overdue and you’re struggling to keep up with payments, negotiating properly can give you more time to catch up again and get back in control of your finances.

Three Tips for Credit Card Negotiations

1. You Are the Customer

   In retail circles, the saying ‘the customer is always right’ is common. People forget that banks are nothing more than retail shop-fronts for money, so the same rules should still apply.

   No business wants to lose a customer. After all, they need customers like you in order to stay in business. If you think your current credit card is being charged too much interest and you know you’ve always been a good customer, call your lender and explain to them that you’ve seen a better option somewhere else. Then ask if they’re willing to match that offer in order to keep your business.

2. Don’t Be Afraid to Ask

   If you don’t ask, you often don’t receive. This is especially true with banks and credit card lenders. If you know you’re nearing your credit limit and you expect to have plenty of bills arriving, then you might consider calling your lender and asking for a credit limit increase. You could also ask them to waive the late payment fee if your payment was only a day or two behind.

   You might also ask as part of your credit card negotiations if you can have the annual fee waived, or the interest rate reduced. Never be afraid to ask to speak to a supervisor or manager. After all, a customer service representative often won’t have the authority to affect larger changes.

3. Back Up Plan

   Credit card negotiations are much smoother if you spend a little time planning your approach in advance. This means making sure you have a realistic, documented reason for asking them to negotiate with you.

   If you intend to call your creditors and ask for a reduced interest rate, be sure you know the accurate terms and conditions of the better offer you’re quoting to them.

   However, if your credit card negotiations are about arranging a payment plan to help you out while you’re struggling through some financial hardship, be prepared to provide proof that you’ve lost your job or have other reasons for your financial problems.

   Regardless of what tactic you use for your credit card negotiations never fear calling your creditors and asking for what you want to happen. The worst they can say is no and you haven’t lost a thing, but at best, you might get yourself a better deal.

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