Negotiating credit card rates

Negotiating credit card rates is something that many consultants neglect to consider. However, it is possible to negotiate credit card rates and get your rate lowered.

Your chances of successfully negotiating a better credit card rate increase if you’ve been a loyal customer and you have an above-average credit rating.

When negotiating credit card rates, do your homework before you call to negotiate a rate reduction:

  • Know your current credit card rate;
  • Know the rate you could secure if you went with a competitor;
  • Know how long you’ve been a customer; and
  • Know your credit rating.

When calling, use your leverage. Let the company know that you’re considering canceling the card and going with a competitor. Mention that you are pleased with your current company and you wish they could match or exceed the competitor’s rate.

Depending on the bank or customer service agent, you may get turned down. If this happens, ask to speak to a supervisor. The supervisor may also respond negatively. Every bank has different policies and procedures when it comes to flexible interest rates.

If, as a result of your negotiation, you are offered a different card, be sure to read the fine print. Many cards offer an initial low interest rate, but the interest rate spikes after the initial teaser period ends.

There is no guarantee that attempting to secure a better rate by calling and requesting a lower rate will be successful. However, negotiating credit card rates is certainly worth investigating.

If you’re operating on credit, it may be wise to consider other options in addition to credit cards.

As a consultant, you run a business. Don’t hesitate to look into business loan and funding opportunities. Contact your local Chamber of Commerce or business institution to find out more about business loans and grants in your area. In Canada, try contacting the Business Development Bank of Canada for loans or Canada Business for grants or subsidies. In the USA, contact the U.S. Small Business Administration for assistance.

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