| Credit Repair Secrets: 5 Tips For Negotiating Better Terms |
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| Written by Tiffani G Peterson |
| Thursday, 05 November 2009 18:59 |
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There are plenty of credit repair negotiating secrets regardless of how good your credit is. Here are 5 tips to get you started.
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 We've all heard that if you ask, you will receive. It's doubly true in the credit industry because the competition is so stiff. It's expensive for credit card companies to get a new customer so they'll work hard to try and keep your business. You might be surprised what you can get just by calling and asking. If you need a reason for them to give you something, tell them you've been a good customer or that you're going through hard times. Any reason will do as long as it's true. One friend of mine called to cancel her card because she'd maxed it out and wanted to avoid the temptation to use it again once she paid it down. To try persuade her to keep it open, the company offered to reduce the rate to zero and let her make payments that fit her budget better. That's to say that some credit card companies are ready to offer you a settlement kind of deal without even having to go through an of the standard collection procedures first. Tip #2 Manage your balances well 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 Having a better deal somewhere else is the easiest way to get a good deal. Credit card companies know they are a dime a dozen and will give you whatever deal necessary to keep you. If you can make a balance transfer out of their account, they'll be more willing to work with you. If not, make the transfer and then see what kind of deal they'll give you to get it back. Tip #4 Work to improve your credit Hopefully this goes without saying. The better customer you are, the better terms they'll give you. If something happens and you won't be able to stay on time, consider whether it makes sense to only fall behind on some of your accounts. For example, if you have a zero percent interest rate credit card, you might want to stay current on that one and let the rest slide. Tip #5 Crunch the numbers 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 key to negotiating is to know what you want and keep working until you get it. Remember that creditors need customers and will fight to get and keep you. Use that to get what you want. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Find out how to do your own credit history repair without an agency. Visit www.creditrepairsecrets.org for free credit advice. |