One of my oldest credit cards recently changed issuers and has been undergoing a rocky transition. Along with problems that included not being able to log into my account, I also received a statement last night saying that I owed a $60 annual fee payment. Over my dead body!
I immediately called and said that they needed to either remove the late payment or cancel my account. Tough words, but 90% of the time the credit card issuer will chose the former instead of loosing the customer. Here are some guidelines if you need to take it to the mattresses with your credit card issuer:
- Be serious – Be a shrewd negotiator on your behalf. Credit card issuers have special departments set up just for customers who want to lower their APR’s or remove their fees, they can take it. If you say that you are ready to cancel the account, you should mean it.
- However, avoid canceling the account if at all possible - Closing credit card accounts can have a negative impact on your credit score, especially if the account is one of your oldest or one of only a few you have open.
- Ask if the change will cause an inquiry - Once you get the credit card issuer to agree to your demands, ask to make sure that the change in your APR or terms will not cause a hard inquiry to appear on your credit report. This isn’t a big deal if you are not applying for major credit in the next year, but can lower your score.
- Follow through – Make sure that the change occurs when the credit card issuer said it would by checking your account regularly. If it doesn’t happen, call the credit card company again.
This negotiation tactic works with other companies too. Cable providers are notoriously easy to negotiate with and I recently heard a story from a co-worker who was able to lower her interest rate on a personal loan.
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