Boldness to negotiate with your credit card companies can end in paying less interest each month, and in some cases, protect your credit score. Credit card terms vary according to card company. However, these terms are not written in stone, and many cardholders are able to acquire better terms by simply asking.
Better Interest Rate
Reading your credit card statement can reveal a high APR or interest rate. Paying excessive fees to possess a credit card increases how much your card company charges in interest each month, and this can slow down paying off the principal. Techniques or strategies to getting a better interest rate on credit cards first involve maintaining a good payment history with the company. This is evident by timely payments each month. One missed payment can jeopardize negotiations. Next, simply call the company and ask for a cheaper rate. Start negotiating and reveal plans to transfer your balance to another company if they don't budge on the rate. The ideal of losing your business can prompt card companies to oblige your request or meet someone in the middle.
Settling Debts
Overwhelming debts may produce thoughts of filing bankruptcy. But before risking a huge drop in your credit score and destroying your credit history, talk with your creditors to see if they will accept a debt settlement. Debt settlement is a practical alternative to bankruptcy; and some creditors are open to negotiations because filing bankruptcy can result in not receiving compensation or payment for debts. With a settlement, the creditor forgives a certain percentage of your debt and then reports the debt as satisfied on your credit file.
Request Everything in Writing
Credit card negotiations are often handled by an account representative or supervisor. Once you have reached a settlement agreement or another agreement with the card company, ask for the company to send a written copy of this agreement to you in the mail. Keep this agreement in your personal files in case the card company denies ever agreeing to new terms.
Use Professionals
Some card companies will not budge on terms of the original agreement. But this doesn't stop all negotiations. The card company may refuse to negotiate with cardholders, but they may work with a professional credit or debt counseling firm. Contact a debt/credit counseling firm and explain your situation. Express your objective for negotiating with credit card companies, such as lowering the interest rate or slashing monthly payment. If accepted into a program, counselors negotiate on your behalf to help you acquire better card terms.
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