Many people overlook the fact that they can negotiate with their credit card companies. It’s not something that you’ll do regularly, but there are unique situations when it makes sense to take action.
Here are just a few of the many things that you can negotiate:
1. Fees
There are many types of fees associated with using a credit card. For example, your card may have an annual fee. If you’re unsure that you want to pay this fee the next time around, contact your issuer to discuss your feelings and the options that are available to you.
Another example is if you’ve been hit with a late fee. If your account is in good standing, talk to your credit card company about having this fee waived. They may be more than happy to do so in order to maintain your relationship.
2. Interest rate
Do you have a variable interest rate? Would you rather have a fixed rate? If you answered yes to these questions, you have reason to contact your credit card company. Ask them if making this change is possible. And if it isn’t, ask if there’s anything else they can do for you.
If you carry a balance from one statement period to the next, your interest rate will come into play. So, you want it to be aligned with your financial circumstances.
3. Reward points
If you’re going to use a credit card, get everything possible in return. A rewards program is a great way to earn points that can be redeemed for things such as travel, gift cards, cash, and more.
Should you find that your rewards program has fallen behind the times, ask if there are any options available to you. Your issuer may be able to move your account into a different program or offer you bonus points to keep you happy. You never know what you can get until you ask.
Also, if you have a credit card balance that you can’t afford to pay down, you can offer to settle the debt. While it’ll still leave a red mark on your credit report, this is better than not paying any money at all.
Final thoughts
Don’t be shy about reaching out to your credit card company to negotiate. The worst that can happen is they say “no” and provide an explanation for why they can’t help. You can then use this feedback to decide what to do next, which may include closing your current account and opening a new one with a different issuer.
