Simple Way to Reduce Interest Rates and Fees on your Credit Card Debt
A survey conducted by Bankrate shows how easy it is to reduce interest rates and fees. What is the secret? All you have to do is ask. Sound too easy? Look at these survey results:
- 87% of those who called in and asked for a late charge to be waived had them forgiven.
- 67% that wanted lower interest rates received them as well
- 89% of those who asked for a credit limit increase received it
- 82% hand their annual fee waived or reduced
Why would banks actually agree to reduced revenue? After all, banks and credit card companies are notorious for ripping off their cardholders through their deceptive practices? (Ironically that we agree to when we sign on the dotted line). There are really two answers.
First, very few people make these requests. If a higher percentage of people requested these discounts, it probably wouldn’t happen.
Second, credit card companies and banks do appreciate a loyal customer who has paid on time and honored their commitment to making the credit card relationship work. After all, in order to get those discounts, a stellar payment history is mandatory.
So what do you have to lose? Just ask…
Now there is one question that you should never ask. I have only seen one example of this happening and one example is enough for me to advise never to ask this question.
A listener sent me a story stating that she asked the credit card company to make a settlement on her credit card balance. They viewed her as a risk, closed her account, and sent her to collections. Can they really do that? Yes, it is in the fine print. I can’t tell you if that is going on today. Since it is such a low probability that they would negotiate a settlement (near zero) it is not worth taking that risk.