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Finance/Investing
Ok, let's face it, everybody hates high credit card rates,
and they drain hard earned money out of your wallet. As a
budding entrepreneur, it is apparent that you learn how to
negotiate to get the absolute best rate that you possibly
can. The good news however is that it doesn't have to be a
difficult or time-consuming process. In fact, it can be
very easy indeed if you know what you're doing. In this
article we will discuss the ins and outs of credit card
negotiating to ensure that you get the best possible rate
with the least amount of effort.
1. First and foremost, you should figure out if you even
want to continue using your current credit card company.
Are you pleased with the overall service that you are
receiving? Do you like their benefits? If the answer is yes
then you can proceed. If not, you should stop reading this
article and start looking for a better company.
2. Second, you should evaluate your paying history and
make sure that it is positive before you call to negotiate.
If it is positive then you have power and if it isn't then
you'll be negotiating from a position of weakness and that
might not be good. Instead, you should wait until it is
more positive before you call them to negotiate rates.
3. Third, if you have a good history then remember this
when you call. In essence, you'll have extremely high
negotiating power. The company needs your business in order
to be successful and with clients they lose big time.
Therefore, you should always display this "take them or
leave them attitude" while conducting your negotiations.
4. Draft up a script and memorize it. It can be as simple
as "Hello, my name is Bill and I have been a cardholder for
X years and I consistently pay my bills on a time. Well
recently I have been receiving all types of credit card
offers from XYZ bank indicating that I qualify for an
extremely low interest rate of X and am considering leaving
you and going there if you can't offer me a lower rate. Is
this something that you can help me with?
5. Practice, practice and practice some more with your
script until you are completely and totally used to it.
Once you are, contact the company. Read your script and see
what happens.
6. If you get a hard nose customer service representative
then don't threaten her. Be agreeable and ask to speak to
his/her supervisor. If that is not possible, be nice to her
and try again she may have some leeway. If you like your
present company, you can even try negotiating interest
rates, annual and even those yucky late fees.
7. However, if you're fed up, have an alternative company
in the wings, and your current company won't budge with
their rates then be willing to take your business
elsewhere. After all, you hold the power so don't be afraid
to use it! They key however is to not bluff but to follow
through with your threat. Close the account, ask for them
to send you notification in the mail, cancel the credit
card and use another card.
Summary
In conclusion, you can be successful with the negotiating
process if you follow the above mentioned tips. If your
current company is unwilling to cooperate then you should
simply take your business elsewhere. You're better off with
another credit card company that values your savvy
negotiating skills!
Claire Bowes is a successful freelance writer and owner of http://www.the-credit-card-centre.co.uk where you will find further advice and tips on credit cards for consumers, students and small businesses.
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