Credit card interest rates have been killing many since they doubled their digits this year, and things are only getting worse as the year ends. With the recent announcement of a hike in the rate, borrowers should expect to pay more on their monthly credit payments. But things have not hit the dead end yet because the option to negotiate a lower credit interest rate is still open. Credit card issuers allow clients to negotiate a reduced rate with a simple call.
Negotiating your credit card interest is not hard, but finding a balance between being direct without being aggressive is something not many know how to do. A negotiation plan is not all you need; you should understand what to do and avoid improving your chances of securing a lower rate.
What To Do
1. Do Find Leverage
Preparation is key in any negotiation, and that of a credit card rate is no different. Apart from gathering all relevant information and reviewing your credit, you should also shop for other deals. Make certain you have details on other credit card companies, like the rates they offer and their terms, as leverage for your negotiations. Remember, the credit card issuer also wants to hold on to your business, and offering you a fair deal could be the way to make you stay.
2. Do Understand Your Limits
Negotiating your interest rate is great, but remember, this is not a quick fix. There are standards by which credit card companies offer lower interest rates to their clients, and they point to your credit card history. The credit company may not play ball if you have black marks in your portfolio. Take time to get it healthy with on-time payments and lower your credit card balances before you can request a rate reduction.
3. Do Walk Away
Going into the negotiations, ensure you have a list of competitors with their rates. You can use this to leverage for a better rate with your issuer; however, if the company does not budge and you have a more attractive rate with another company, walk away. Lower credit card rates do not come every day, especially in the current economic climate so if the chance presents itself, take it.
What Not To Do
1. Do Not Lie About Your Credit History
Always be honest about your credit history. It may be tempting to bend the truth and make your credit history appear more attractive than it is. The simple is, do not. The agent can easily access your records and see them for themselves, so lying is pointless and creates a bad impression of you from the start. The issuer could also easily decide to deny your request even before you have the chance to present your case. If you are unsure, you can always check your credit report before the call.
2. Do Not Lose Your Cool
Situations involving debt and finance are stressful for many people, but that is no excuse to be rude and impatient when talking to a credit card company. Staying calm and patient certainly does not affect whether you get a lower credit card interest rate, but it will affect your experience and even hurt your chances. Remain cool and collected; even if you do not reach your goal, the customer care representative can present you with other alternatives when you are more pleasant than nasty.
Final Take
The call to your credit card company to negotiate your interest rate is 15-20 minutes long; however, it holds a lot of weight. For all to go well, you should know what could better or hurt your chances at a reduced credit card interest rate. Hopefully, this guide will provide useful tips for negotiating credit card rates.