Credit Card

It’s something you may think about from time to time. You understand the benefits of negotiating with your credit card company, but wonder if they’d be receptive to your approach.

While there is no guarantee of success, there’s nothing stopping you from negotiating with your credit card company. You’re free to reach out, discuss your concerns, and attempt to secure a better deal.

Tip: when doing this, make sure you get the right person on the phone. There’s a good chance the first person you speak with won’t have the power to help you out. You’ll need to connect with someone “higher up the food chain.”

In regards to what you can negotiate with your credit card company, there’s no limit. If you can dream it up, you can at least ask. Here are some ideas:

Balance:

If you can’t manage your balance, perhaps because your finances have taken a turn for the worse, you should immediately contact your credit card company. They may be willing to accept a lump sum payment, while writing off the rest of what you owe. It’s a shot in the dark, as you never know the response you’ll get. However, if your issuer gets the impression that you’ll stick them with the entire balance, they may be willing to negotiate.

Interest Rate

Maybe you do this because your current interest rate is making it difficult to stay current with payments. Or maybe you do this because you learn that similar credit cards are offering a lower rate. If you regularly carry a balance from month to month, consider negotiating the rate.

Reward Points or Cash Back Rate

Do you receive reward points or cash back for every dollar you spend? If so, get on the phone and ask for a better rate. For instance, if you currently earn 1 percent cash back, contact your issuer and tell them that you’d like 1.5 percent. If they turn you down, let them know you’re going to cancel your account and move onto a more lucrative offer. This may be just enough to tilt the scales in your favor.

Final Thoughts on Negotiations

It may not be your idea of fun, but negotiating with your credit card company often makes sense. This is particularly true if your negotiations are rooted in financial distress.

When negotiating, make sure you always do these three things:

  • Get the right person on the phone (it must be a decision maker)
  • Remain courteous and respectful throughout the conversation (regardless of how you’re treated)
  • Don’t get greedy (anything is better than nothing)

With this advice, you’ll find yourself feeling better about your ability to successfully negotiate with your credit card company.

Once you get off the phone, stop back and let the rest of us know how it went!

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