How to Negotiate With Your Credit Card Company in Good Times and Bad

There are times when you may want to negotiate with your credit card company. Perhaps you’ve been shopping for the best rates and discovered that your company is on the high end of the spectrum. Or maybe you’ve fallen behind on your payments and need all the help you can get to lower your debt. Either way, you’ll be glad to know that many credit card companies are open to negotiating.

These tips provide helpful information about negotiating with your credit card company. Your chances of getting more of what you want from your creditor are greater when you prepare ahead of time and have all the information you need in front of you.

Negotiating in Good Times

When you have a good credit score and you’re in good standing with the credit card company, follow these tips:

1. Have All Your Information in Front of You: Know your credit card number, balance, current interest rate, and the amount of your monthly payments. Having this information readily available will streamline your conversation and show that you are serious and prepared.

2. Speak Clearly and Calmly: Always maintain a calm and clear tone. Avoid raising your voice with the person on the other end of the phone. If you encounter difficulty, politely ask to speak to their manager.

3. Ask for the Appropriate Staff Member: Speak with someone who has the authority to grant your request. For example, if you want to raise your credit limit, speak with someone who handles credit limits. If you want to lower your interest rate, speak with someone authorized to do so.

4. Ask for Special Promotions: As a good customer, you can ask for special promotions or extra points on your credit card. Credit card companies often give extra rewards to their loyal customers, so don’t hesitate to ask.

5. Request an Interest Rate Decrease: When you have good credit and a positive standing with the company, they may consider lowering your interest rate. Do your homework to compare other credit cards beforehand and inform them if they charge more than the norm.

Negotiating in Challenging Times

If you’re behind on your payments, use these negotiating tips:

1. Get Your Credit Information Together: Have your last bill ready when you call. Be prepared to be on hold for a while if necessary.

2. Ask to Speak to the Person Who Makes Payment Arrangements: The person you need to speak to may be a manager. Explain that you are interested in making payment arrangements to satisfy your debt.

3. Stay Calm When Explaining Your Situation: Explain that you’re having financial issues and wish to work out a plan. Clearly state what happened to cause you to fall behind on your payments.

4. Discuss Decreasing the Amount of Interest That You Owe: Ask if they can reduce or eliminate the interest you owe. Explain that you want to honor your commitment to pay your debt, but the high interest is making it challenging.

5. Offer to Pay a Portion of Your Balance as a Final Payment: Ending the relationship would mean your account is closed. They might accept your offer, knowing that getting something is better than nothing. This is especially true if you’re considering bankruptcy and inform them that you may go that route.

6. Ask Them to Remove Negative Information From Your Credit Report: Sometimes, they will agree to this. Ensure you understand their terms and get the agreement in writing before you make any payments.

7. Thank Them for Their Help: Be kind and grateful when you’re finished speaking with them.

Learning how to negotiate with your credit card company can benefit you in numerous ways. For greater success, take the time to prepare for your negotiations and use these tips in your discussions.

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