One Money-Saving Call
Tuesday, March 24th, 2009Most credit card holders have recently been hit with higher interest rates and lower available credit. The good (if not slightly irritating) news is that, for many, a phone call is all you need to get things back to normal. Here is what you need to do: Do your homework and be ready to cite the following:
1. The rate that you want (8% is a fair number to ask for).
2. How long you have been with the company (it’s great to be able to say “I have been with you for five years, but I have a better offer…”, etc.).
3. Your FICO credit score. A higher score (700 and up) will get you additional leverage.
4. If you make your minimum monthly payments on time. In this scenario, as long as you pay your minimum it is actually okay if you don’t pay off your full balance each month. Think like a credit card company - they make money off of you when you carry a balance. So, as long as they believe that you will continue paying off the balance, they want to keep you.
5. Use a credit card comparison service (such as bankrate.com or creditcard.com et al) to find which cards have a lower fixed rate than your current card. (Introductory rates can be teasingly low, but find out what the rates become after the honeymoon is over.)
6. You also want to pay close attention to the various fees attributed to each card. Knowing what other offers are out there may actually make you want to move to another company, but even if it doesn’t, it will arm you with an aresenal of competition.
Now, what should you actually say? Well, this is actually the easy part. Consumers who participated in a PIRG survey used the following script:
“Hi, my name is [Your Name]. I am a good customer, but I have received several offers in the mail from other credit card companies with lower APRs. I want a lower rate on my card, or I will cancel my card and switch companies.”
How simple was that? And of those that used the script, more than half scored a lower rate. With the average drop going from 16 percent to 10.47 percent.
Now, if you don’t get what you want right away, politely ask for a supervisor or manager. The 
person you initially speak with may not have the authority to lower your rate.
Be polite, but firm. Yes, you have to make some noise if you want to get something done. But be sure to make your complaint in a friendly manner so that the customer rep actually wants to help you out.
This article was previously published on by Thrive, a free online personal financial service based in New York City. They share tips about personal finance and how to make the most out of your financial life.
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