You don’t have to be in a financial hardship or overwhelming debt to enter credit card negotiations. In fact, having your account in good standing is a great time to negotiate with your creditor. Although they may not admit it there is always room for your creditor to lower your interest rate, which can save you hundreds to thousands in fees.
Tricks Of The Trade
Lowering your interest rate is not always easy, but if your account is in good standing you may be able to secure a better deal. There are three main negotiating points you can take into the conversation to help you arrange a lower interest rate.
First, bring up your credit score. Most creditors will tell you that your interest rate is determined by your credit score. If your score is better than it was at the time of applying for the credit line, then you are due for an upgrade, or lowering of your rate.
Next, discuss your timely payment history. Although debt repayment is your responsibility, making payments on time isn’t as common as you would think. Creditors need to be reminded of your timely payments and responsible borrowing history. Don’t be afraid to point out your good side when it comes to borrowing money from the creditor.
Last, let them know you may be closing the account or going with another lender. Credit competition is fierce and you can use that to your advantage when negotiating. Let you creditor know that you may accept an offer with another creditor, will transfer your balance elsewhere or close you account if they can’t work with you on a better deal. Don’t use threatening language, but politely inform them you have other options.