Many people overlook the fact that
they can negotiate with their credit card companies. It’s not something
that you’ll do regularly, but there are unique situations when it makes
sense to take action.
Here are just a few of the many things that you can negotiate:
1. Fees
There are many types of fees
associated with using a credit card. For example, your card may have an
annual fee. If you’re unsure that you want to pay this fee the next time
around, contact your issuer to discuss your feelings and the options
that are available to you.
Another example is if you’ve been hit
with a late fee. If your account is in good standing, talk to your
credit card company about having this fee waived. They may be more than
happy to do so in order to maintain your relationship.
2. Interest rate
Do you have a variable interest rate?
Would you rather have a fixed rate? If you answered yes to these
questions, you have reason to contact your credit card company. Ask them
if making this change is possible. And if it isn’t, ask if there’s
anything else they can do for you.
If you carry a balance from one
statement period to the next, your interest rate will come into play.
So, you want it to be aligned with your financial circumstances.
3. Reward points
If you’re going to use a credit card,
get everything possible in return. A rewards program is a great way to
earn points that can be redeemed for things such as travel, gift cards,
cash, and more.
Should you find that your rewards
program has fallen behind the times, ask if there are any options
available to you. Your issuer may be able to move your account into a
different program or offer you bonus points to keep you happy. You never
know what you can get until you ask.
Also, if you have a credit card
balance that you can’t afford to pay down, you can offer to settle the
debt. While it’ll still leave a red mark on your credit report, this is
better than not paying any money at all.
Final thoughts
Don’t be shy about reaching out to
your credit card company to negotiate. The worst that can happen is they
say “no” and provide an explanation for why they can’t help. You can
then use this feedback to decide what to do next, which may include
closing your current account and opening a new one with a different
issuer.
