Did you know you can get a lower credit card rate by simply asking for it? Many people do not know this, but credit card companies tend to offer their customers help. What reason does the company have to help you? A credit card company looks at you as a valuable asset. They are inclined to provide attractive rates on your credit card to keep you as a client. Whatever your situation is, you can potentially cut a chunk off your credit card debt by getting on the phone with your credit card issuer for a few minutes.
7-Step Guide To Developing A Negotiation Plan
Go about negotiating your credit rate in a non-confrontational but direct manner. Remember, the company is not obliged to give you a reduction, but going about the process strategically can improve your chances. Here are some guidelines you can employ when creating a negotiation plan.
1. Confirm The Debt
Before putting together a negotiation plan, verify your debt. Take stock of how much you owe. What is your total credit card balance? Do you have any delinquent debt? Are there any debts already forwarded to collectors? Only then can you plan for a realistic request.
2. Research Current Rates
Knowledge is power. And when you are planning to negotiate your credit card rate, you will need lots of it. Conduct credit card research on different companies rates and terms. Be sure to make comparisons. The information will come in handy when you give our credit company a chance to match a competitor’s rate. Who knows? You could get a much better rate if your company is determined to keep you as a client.
3. Make Your Pitch
Many call up credit card issuers for a reduction in their rates, but not all requests are granted. You must give the company a reason to lower your credit card rates. When the first call, present your history with the company and point out your good credit. An on-time payment history could improve your chances of getting a reduction, thus, do not fail to mention it.
4. Speak To The Supervisor
When you call a credit card company, a customer care agent will answer your call. Introduce yourself, present your situation, and ask to speak to the supervisor. Many requests go unanswered because customers did not speak to the person in charge of granting lower rates. Ensure you are put through the official in charge and make your pitch to them.
5. Ask Questions
Before agreeing to the terms of your offer, ensure you fully understand what the company is offering. Ask questions if you have to. What is required of you? What should you expect from the credit card company? Request explanations when you do not understand, especially regarding the agreement terms.
6. Get It In Writing
Before you get off the phone with the creditor, get a written agreement that your deal is in the works. Request a copy of the contract outlining the terms of your agreement. When you do not receive it on the agreed-upon date, call again to follow up.
7. Ask For A Different Offer
There is a 50% chance the company could accept your request, which means they have a similar opportunity for saying no. When your case is the latter, do not give up. Lower rates are not the only incentive you can score with a credit card company; you can ask for other available offers. It can be in the form of bonus points or other credit card incentives.
The Bottom Line
Negotiating a lower rate with a credit card company is an effective technique to reduce debt. When your request is granted, it is important to begin your journey to eliminate the debt. Do not forget why you are doing this; direct the money saved from the interest towards your debt and start to minimize it. If the credit company did not grant your request, inquire about their reconsideration procedure. How long should you wait? What can you do to better your chances for future consideration? You can nurse your credit health until you can request for reduction in the future.