The list of things credit card companies are
required to tell you is quite long (that's why you need a magnifying
glass to read all of the tiny print on their disclosure statements). But
there's more information than even meets the magnifying eye.
For
instance, did you know that if your credit score is 700 or higher, you
may be able to negotiate certain changes to your account? All it takes
is a phone call to find out. Here's a look at the things you might be
able to do:
1. Lower your rate.
Lower
interest rates are a possibility if you're in good standing with your
credit issuer (no late payments and you haven't gone over your credit
limit) and your credit rating is good. If you've heard from another
company offering a lower APR, call your current issuer and see if
they're willing to match it, or better yet, go even lower. Even if you have
made a late payment or two or have gone over your credit limit, ask how
long you have to be in good standing before they will consider giving
you a break.
2. Skip fees.
Credit
cards issued by some businesses, such as airlines and hotels, charge
annual fees. But if you have a solid payment history, you can ask to
have these fees waived or removed. If that's not a possibility, ask to
have the fee cut in half – for several years. You also can ask for
balance-transfer fees to be waived.
3. Move your billing due date.
If
you pay significant expenses like mortgage, rent, car payments and
utilities at the start of the month, you can move the due date of your
credit cards so that your payments fall in the second part of the month
(or vice versa). For some people, this can be helpful in paying in full
and on time.
4. Increase your credit limit.
You
may want to do this if you're making a large purchase and need more
cash to cover the costs. It also can help to improve your credit score,
which is based, in part, by the percentage of available credit you have.
Agencies prefer "available credit" to be at least 65 percent. If you
have a credit card with a limit of $10,000, for example, and you owe
$3,500 on it, that's a 35 percent utilization rate, and 65 percent
available (unused) credit. Keep at least this much available credit on
credit cards can help increase credit scores, and be careful not to fall
into the trap of using available credit just because you have it.
5. Talk to a higher-up.
The
decision-making power of customer service representatives is very
limited. If you're unhappy with the responses you're getting, ask to
speak to a supervisor and cite key points relevant to your goal. For
instance, you might mention your good standing with the company; the
fact that you use the card heavily; or the fact that as much as you'd
like to continue doing business with them, you will switch to another
company if things can't be resolved to your liking.
6. Fix Negative Information.
Slip-ups
from a few years ago need not haunt you forever. Some creditors may, in
certain circumstances, be willing to make a "goodwill adjustment" to
strike a late payment from your record. You can ask for this over the
phone, but chances are you'll have to make a more formal request in
writing with a clear and concise explanation of why the creditor should
do this for you.
7. Get a do-over.
Credit
card companies don't openly publicize this, but many will allow you to
"re-age" a delinquent account. The process enables you to bring the
account current and stop late fees from accruing if you meet these
criteria: you've paid at least three consecutive minimum monthly
payments; you have a renewed willingness and ability to pay; and the
account is at least nine months old. You'll still owe the same amount,
but your account will no longer be considered delinquent. Re-aging only
makes sense if you have the ability to get back, and stay on, track.
As the saying goes, it
can't hurt to ask. You might not always get exactly what you want, but
you'll gain more information and may end up in a better financial
situation than when you started.
