Tips To Negotiate Lower Rates With Your Current Card Companies

In today’s world, everyone needs credit. However credit does not come cheap, interest rates it seems keep rising. While interest rates keep rising, the need for credit remains the same. Many people sadly are unaware that you *can* negotiate with your credit card company to get a better interest rate.

Reasons or signs it’s time to negotiate with your credit card for a better rate:

* You have been on time with your payments every month.

* You pay the balance in full often or at the least more than the minimum payment.

* You have received much better credit offers in the mail or online.

* You have too much credit card debt and only a lower interest rate will keep you afloat financially.

If you have received better offers either online or via the email (aka snail mail), call the number on the back of your credit card and come right out and tell them you are considering dropping them for card “X” because card “X” is offering you a certain interest rate and any other benefits that the new card is offering you. In today’s day and age, the credit card industry is very competitive. When you speak to the credit card company tell them you have been giving them your business for however long you have been with them and that you have been happy with them, but with this new better offer it only makes sense to move on. Ask them for a counter offer.

If you have been on time with payments and you think you deserve a better interest rate, explain this matter of factually to your credit card representative. Maybe you want a higher credit limit to. Explain that given your good payment history you feel you deserve a better rate and terms. If the credit card company values your business and most will for this type of customer, especially since so many credit card owners are late with payments and also considering the high rate of charge off’s that credit card companies have to deal with, you are more than likely to get a better deal.

If you have been struggling with the bills and are in risk of defaulting on your credit card you can negotiate as well with the credit card company but it is more difficult. Sadly even when you are legitimately struggling and facing real financial hardships, convincing the credit card company of this can be quite a hassle. To negotiate under these circumstances you will need to speak to them in a way they most understand. Credit card companies want to get paid as much money as possible. When you call them you need to spell out exactly what the situation is, be it a loss of your job, a medical issue or any other sudden loss of income. Go over your budget with them, your expenses and liabilities that cover your day to day expenses while letting them know that at least for “now” the credit card bill is at the bottom of the list of priorities when your struggling to cover rent and pay for basic things like food. You basically need to make them realize that for the time being you will not be able to pay and that if they do not want this debt charged off they need to work with you by modifying the terms. They may only modify your interest rates once you hit the 90 day past due mark, because at this point they know for sure that you are having finical problems.

Getting a lower rate is easy for the most part if you call the credit card company and be honest with them. They want your business and there are many cards to choose from and they know this. When dealing with them on the phone, be polite but also be matter of fact and direct with them and see what counter offer they have for you.

This article was written by Steven Moore, who has been covering consumer finance and the credit card markets since 2006. You can learn more and connect at his Google+ page.