The credit card companies earn you profit by charging high interest rates the card holders. The interest charged is income to them but for the card holder it costs a lot causing a hole in the pocket. The competition among the credit card companies has become very intense and because of this they try and making all possible efforts to retain their clients. Doe to this the card holder has some power in his hands to decide the fees and the interest they would like to pay every month.
Not many card holders are aware of the fact that they have the right to negotiate with the issuing company the interest rates that they need to pay. One should try and discuss the company especially in times when they have to make all the efforts to cut costs. There are some things which one should keep in mind while negotiating with the credit card company.
The first thing to be remembered is to check the payment history. When the payments have been always made in time then only they are in a position to negotiate with the company. The bank is always more flexible and less rigid with customers who have a good payment record.
When a person negotiates on interest rates they should ensure that they have a fixed low interest rate. Apart from the introductory rates one should also make sure that the rates in the long run are also low. One should also know the best rates that other companies are offering so that you have a base to negotiate with the card company.
One has to be cool-headed and also be very logical when negotiation with the issuing company. Being aggressive never helps and rather makes the case weak. Threatening the company and the representative you are dealing with makes the case bad. You need to explain in simple and polite words the problem and the better offers that the other company is offering.
It is not correct to tell the card company that you are going bankrupt. This can cause negative reactions from the company which are not good for you and the case. If you have decided to go to another company tell the card issuing company clearly and complete the formalities.
By following certain tips one can negotiate with the credit card company and lower the interest rate on their credit cards.