Credit Repair Secrets: Five Negotiating Tips
There are plenty of credit repair negotiating secrets regardless of how good your credit is. Here are 5 tips to get you 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 Don’t max out all your cards
When you have an available spending limit, you can do a balance transfer from a higher rate card. If you’re interested in raising your credit limits, keep your balances around 30%. That way, you let the credit card companies make some money on interest and show you can manage your credit well.
Tip #3 Let credit card companies compete against each other
The easiest way to negotiate is to have a better deal somewhere else. Creditors know that you MIGHT have a better deal if you went and worked at it. You have much better leverage if you already DO have other options. If your cards are all maxed out, you don’t have other options. If you’ve left room on your cards, you can balance transfer to the cards with better terms and then offer to transfer it back if they offer you a better deal.
Tip #4 Maintain better 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 Do the math
Most people only negotiate the interest rate. While that’s usually the most important factor, you ought to look at any additional fees, any rewards for using the card, and how long the rate is good for, etc. A company that wants you to call in every month to give you the best rate won’t be as attractive as a card that gives you a fixed low rate.
The bottom line to negotiating is to know where you are and where you want to be. Once you know that, get out there and do it. There really aren’t any credit repair secrets. Just get started and you’ll figure it out.
Find out how to do your own credit repair without an agency. Visit www.creditrepairsecrets.org for free credit repair secrets.
No comments yet.
Leave a comment
