Negotiating Rates with Your Credit Card Company

In fact, it can be very easy indeed if you know what you're doing. In this article we will discuss the ins and outs of credit card negotiating to ensure that you get the best possible rate with the least amount of effort.

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.

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 real 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.

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 poor paying history clients they lose big time. Therefore, you should always display this "take them or leave them attitude" while conducting your negotiations.

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 Z% 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?"

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. 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 kind of leeway.

If you like your present company, you can even try negotiating interest rates, annual fees and even those yucky late fees. 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 on how to use it is simply to ask for what they can offer. And be persistent -- most credit card companies will lower your rate or improve your standing somehow at least once or twice a year based on your good account payment history.