Getting The Most From Credit Card Negotiation

An all too familiar scenario for many Americans is having credit card debt that becomes increasingly unwieldy. Negotiation for lower rates with credit card companies is possible, but which route should one take? On the one hand, the borrower can play good cop.

Good cop, Bad Cop

If you elect to sweet talk your creditor into a lower rate, have some selling points ready. The first is a solid payment history. Point out that thus far you’ve been a loyal and responsible customer who pays the bill on time, every time. Any creditor likes this. Pointing it out shows that you’re aware of your good habit and also that not everyone does this. Another point to bring up is the length of time that you’ve been a customer. The longer the better. Having a stable job or at the very minimum, the prospect of getting a stable job is another selling point. A reliable source of income goes hand in hand with the ability to pay obligations. Stability is your best weapon in credit card negotiations.

If you elect to go the other route, there are still selling points to aid your negotiations, but be advised, this route is more risky. If you’re a borrower who has been paying, then informing the creditor that you may not be able to continue to pay without assistance may inspire them to cut you a break. The prospect of losing an income stream from a paying customer may be enough to negotiate a lower rate or better terms. On the other hand, if you’re a borrower who hasn’t been paying, this tactic may not work out to your benefit.