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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 can't 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 won't 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.
Summary
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!
About The Author: Claire Bowes is a successful freelance writer and owner of http://www.the-credit-card-centre.co.uk where you will find further advice and money-saving tips on credit cards for consumers, students and small businesses.
By
01/31/2010
I just called Chase as they increased my interest rate from 6% to over 12%. I know that's still low but it's the principal involved. I have had this same card for nearly 20 years. I pay my balance off every month but who knows; if in the future my financial situation may change. I called Chase to ask why and was told "cost of business". I told her that Chase made money off me every time I use the card. Her comment was "you can close the account". I told her I was not closing the account but I would not be using it often. In a rude matter she said "that's your choice, we don't make money off you anyway. Before I had a chance to say "you make money from the merchants where I use the card", she hung up on me. I might have shot myself in the foot as I wouldn't doubt that after this call that they will increase the rate higher.
By
05/31/2005
Lower you interest rate. I just finished talking to customer relations of my credit card. I wanted a lower interest rate as the balance just wasn't moving since most of my payment went to finance charges. I'm in good standing so they lowered it 9%. Doesn't hurt to ask.
By Amy
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