Get what you want from credit card companies
Dissatisfied with the terms of your current credit card? Think of ways how you can get credit card companies to waive fees, lower your interest rates or increase your credit limit. Pick up the phone and try calling them right now.
Anybody can do it. It takes persistence, organization, and patience. You also need to have credit options. You need to be able to transfer your credit balance to another credit card and fire your current credit card bank. Choose the best among them.
Get tough. Often, you just need to ask. You’ll be surprised how easy it can be to get what you want. Other times, you might need to get tough and threaten to take your business elsewhere.
Make it clear to your credit card company that you will transfer your balance to another credit card and close your account with them if they do not comply with your demands. Be prepared to follow through with your threat or else it has little power.
Climb the ladder. Don’t take your first “no” for an answer. The first person you talk to might not have the power to change your terms, or any motivation in doing so.
Never give up! Always ask to speak to a supervisor. Make it clear that you are prepared to take your business - that is, their profits - to another bank if they don’t do something.
Stay on their good side. You have a better chance at success if you’ve never been late with a payment and your account is in good credit standing. If you have a good relationship with the bank, then it should be fairly easy to get them to comply.
Make a pitch. You don’t always have to threaten your bank. You can always offer another one of your business- in return for a favorable terms. That’s why having available lines of credit comes in handy.
Call a credit card bank that you have that has a zero balance and say, “Hey, I’ll transfer all my balance to my account from another bank right now if you give me zero percent for six months with no transfer fees.” You might be surprised to find that you have existing low-rate deals available right now!
This is what I did when my first credit card started billing me for annual fees during the second year. We all know that the annual fees are just waived during the first year. I called them up and asked if they can waive it. I said to them that I have a lot of credit cards. I have 5 of them which all I got for free. 2 are not in use. I can just easily close that account if I wanted to. Besides, I always pay on time and has a very good credit standing. Furthermore, I just availed another credit card from them. This time it was a Mastercard for the promo that they had. I can also cancel that if I wanted to. In the end, they had it waived and I saved P1,400 for that annual fees.
The bottom line is this - you must punish the banks that are charging you a high interest rate by transferring your balance to banks that treat you well and deserve your business.
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Tagged with: credit cards • finance
Filed under: Personal Finance
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9 comments
This a great post Tyrone! Congratulations on your new blog! You’ve really come a long way.
I agree! Ask politely and more likely than not credit card companies will waive your annual fees. Specially if it’s a card that doesn’t really offer any real benefits. For cards that offer fuel rebates, I found it harder to have my fees waived because the companies reason out that they incur costs every time you acquire rebates as well. Otherwise, I haven’t paid annual fees for years now. If you have a good credit standing or you have a good relationship with a certain bank, you can always apply for a new credit card with a waived annual fee for the first year ^^ Knowing bank managers would also help your application ^^
Congrats on your blog again!
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My annual fees are about 24€ + 2,50€ every months. I own a mastercard. Nice post anyway.
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tnx for visiting my site. u have a very informative site here! will visit regularly.
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Nice tips Tyrone. May I add that if you receive a notice that they will upgrade your card to “Gold”, it would be better to decline as these have significantly higher annual fees and it is more unlikely that they will waive it. This happened to me once and when it was time to pay the annual fees, I politely said that they should waive it otherwise I will have to cancel my card. One of their Managers called me up to say that they have exhausted all means and they really can’t waive the annual fee so I just cancelled it. Funny thing is I still get a monthly billing statement with zero balance from them although I cancelled the card 9 months ago.
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this is true, my annual fee for my citibank card has been waived for three years now.
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I have some 20 existing principal credit cards, most of which have been with me in the past 5-6 years. Never paid any annual fee or finance charges! That’s what you call consumer rights!
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Credit card companies earn roughly 5% commission on your purchases, and whether or not you pay the annual fees or finance charges, they still earn a lot from you.
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Why I have 20 credit cards? No, I don’t splurge on shopping or dining. I actually am a wise shopper and I just want to have them all so that I could get all the tie-up discounts, perks, and rebates wherever I am!
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Credit cards serve as my discount card, my budget card, and my “monitoring card” as well. I actually use my credit card wherever it is accepted, instead of paying in cash. Credit cards delay your cash outflow. Just think about the 20-50 days when your cash could have been kept in the bank for a short-term investment. That could amount to just a peso or two, but still, it is for you to keep.
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Rather than giving up your P1,000 cash to the already-rich department store or restaurant owner, pay using your credit card. But take note that you don’t have the right to swipe for anything that you couldn’t pay for.
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Also, don’t get crazy earning those rewards points. If you are able to redeem something, then good. If not, then don’t swipe another P50,000 just to get a small toy as a reward. You might be able to buy that toy for just P10 or P20 in the sidewalks, your choice of item pa!
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You might want to get a card that provides rebates instead of rewards, as rebates are easier to accumulate and redeem.
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But if you think you can’t say no to the shopping temptation, then just keep your cash, keep your card, and keep on searching for better income opportunities first before planning on your next shopping spree.
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nice post, thx for sharing it
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correct me if im wrong..i think ive already read this post..hehehe anyways as a banker and based on my experience as banker…you should also be responsible for using your credit card..after using it make it sure that when your billing statement come…you should pay all your dues.
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This seems to be a really great post. Thanks for sharing, but for my case, I think it’s already too late for me. Hehehe…
Anyway, thanks for adding my blog to your roll. I already have added yours. Aside from my main blog, I have added your link to my blogroll at http://www.budgetblogging.net. Thanks!
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