Should You Negotiate With Your Credit Card Company?

Many people never think twice about the terms and conditions associated with their credit card. Even if they have some questions and concerns, they assume that there’s nothing they can do. And if they do decide to take action, canceling their credit card is the first thing that comes to mind.

While it’s your decision as to the approach you take, don’t overlook the potential to negotiate with your credit card company. If you’re interested in doing so, here are three places to start:

  • Annual fee: Are you unsure if you should pay to use your credit card for another year? If you have any reservations, contact your issuer and ask them if they can waive your annual fee. If the answer is no, request to be transferred to the cancellation department. This may be just what you need to avoid an annual fee for one year (or maybe even longer). 
  • Rewards program: Maybe you’ve come to realize that your credit card rewards program isn’t nearly as robust as you thought. Perhaps you realize that other cards are much more advanced. Don’t be shy about expressing your displeasure with your credit card company. They may be willing to take action — such as by adding bonus points to your account — to keep you as a customer.
  • Interest rate: The higher your interest rate, the more you pay every time you carry a balance from one statement period to the next. If you have an above-average fixed interest rate, ask if there’s any room to lower it. Or, if you have a variable rate, see if switching to a fixed rate is an option (and if it would work in your favor).

You won’t negotiate with your credit card company month after month, but there will be times when it makes sense to do so. Once you contact your issuer, you may realize that they’re more than willing to work with you to keep you satisfied.

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