Inside Credit Cards

Credit Card Rates
can be negotiated!

Let's face it, none of us are perfect, and we all have our problems. When it comes to credit cards, you have to know that there are people at the other end of your phone that you can talk to. Credit card companies want to keep your business, and they want you to keep their credit card. Sometimes the best thing to do is just pick up that phone and ask for a credit card with a lower interest rate. It can be done, and although it may increase your annual fee a little, it may still be to your advantage to make a lower monthly payment.

Negotiating Rates with Your Credit Card Company

 by: Claire Bowes

Ok, lets face it, everybody hates high credit card rates, and they drain hard earned money out of your wallet. As a valued consumer, it is apparent that you learn how to negotiate to get the absolute best rate that you possibly can. The good news however is that it doesn't have to be a difficult or time-consuming process. In fact, it can be very easy indeed if you know what you're doing. In this article we will discuss the ins and outs of credit card negotiating to ensure that you get the best possible rate with the least amount of effort.

1. First and foremost, you should figure out if you even want to continue using your current credit card company. Are you pleased with the overall service that you are receiving? Do you like their benefits? If the answer is yes then you can proceed. If not, you should stop reading this article and start looking for a better company.
2. Second, you should evaluate your paying history and make sure that it is positive before you call to negotiate. If it is positive then you have power and if it isn't then you'll be negotiating from a position of weakness and that might not be good. Instead, you should wait until it is more positive before you call them to negotiate rates. 
    
3. Third, if you have a good history then remember this when you call. In essence, you'll have extremely high negotiating power. The company needs your business in order to be successful and with clients they lose big time. Therefore, you should always display this take them or leave them attitude while conducting your negotiations. 
    
4. Draft up a script and memorize it. It can be as simple as Hello, my name is Bill and I have been a cardholder for X years and I consistently pay my bills on a time. Well recently I have been receiving all types of credit card offers from XYZ bank indicating that I qualify for an extremely low interest rate of X and am considering leaving you and going there if you cant offer me a lower rate. Is this something that you can help me with?
    
5. Practice, practice and practice some more with your script until you are completely and totally used to it. Once you are, contact the company. Read your script and see what happens. 
    
6. If you get a hard nose customer service representative then don't threaten her. Be agreeable and ask to speak to his/her supervisor. If that is not possible, be nice to her and try again she may have some leeway. If you like your present company, you can even try negotiating interest rates, annual and even those yucky late fees. 
    
7. However, if you're fed up, have an alternative company in the wings, and your current company wont budge with their rates then be willing to take your business elsewhere. After all, you hold the power so don't be afraid to use it! They key however is to not bluff but to follow through with your threat. Close the account, ask for them to send you notification in the mail, cancel the credit card and use another card.  

In conclusion, you can be successful with the negotiating process if you follow the above mentioned tips. If your current company is unwilling to cooperate then you should simply take your business elsewhere. You're better off with another credit card company that values your savvy negotiating skills!

You may also want to consider using prepaid credit cards, in which case take a look at Prepaid Credit Cards.