by Tiffani G Peterson
If you're looking for credit repair secrets, here are 5 negotiating tips. They work regardless of how good or bad your credit might currently be. Let's get started.
Tip #1 Ask
Credit card companies are constantly competing for your business. It's easy for consumers to switch to another company so you can get all sorts of better terms just by asking. If you need a reason tell them you've been a good customer, made your payments on time, etc. Even if you don't have perfect credit, companies want to keep making money and will almost always offer better terms to keep you happy.
I know one person who called her credit card company to close the account. She was wanting to pay down her debt and didn't want to think about the possibility that she might use the card again. The company made her all kinds of offers from lower interest to lower payments. It reminded me of an outright settlement. In this economy, creditor are becoming more flexible because it's harder to make the same profit they did before.
Tip #2 Leave room on your credit cards
When you have additional spending limit on your cards, you can do a balance transfer if one card doesn't give you as good a deal as you'd like. If you're wanting to extend your credit lines, the best way to do that is to maintain a balance of around 30% of your limit. That way the creditor is making money on interest and can see you're handling it responsibly.
Tip #3 Make credit card companies fight for you
Having a better deal somewhere else is a great way to get a better deal. As competitive as things are out there, creditors know it might not take much for you to go get that deal. You have much more leverage though if you already have that better deal in hand. Then they know you're ready to act and they better do something to keep you. If you've left space, you can go ahead and transfer your balances to the one with the best rate. Then go back to them and offer to transfer the balance back if they give you a better deal.
Tip #4 Work to improve your credit
This one might sound obvious. The best customers get the best deals in any industry. One thing to consider though is if something happens and you have to miss payments. After making your secured loan payments, look at prioritizing your accounts based on how good a deal you're getting. Use that as leverage in the future. If they would have given you better terms, they could have been a higher priority. Ask for a better deal so they get paid first next time.
Tip #5 Know the true value
There are plenty of things you can negotiate besides the interest rate. You need to factor in how long you'll have any given interest rate, whether there are any annual fees or any other fees, if there are any rewards for using the card, etc. If a company gives you frequent flier points on top of a 7% rate, that might be better than a card with an annual fee, 5% and no rewards.
At the end of the day, the key to negotiating is to know where you are and where you want to be. Then get out there and keep asking until you get what you want.
About the Author:
Fix bad credit! Do your own credit repair without an agency. Visit www.creditrepairsecrets.org for free credit help.
Nice tips to get full benefit of credit card. Pension Transfer
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