Negotiating Better Credit Card Terms

1. Negotiating Better Credit Card Terms Chicago Tribune Sunday, June 20, 2010

2. Challenge Increases in interest rates and fees, and reductions in credit limits and grace periods, and try to negotiate better terms. Make counteroffers you can afford. Take notes on what they tell you. Record the names of the consumer service reps you speak with

3. If the card issuer won’t budge, at least lock your balance at the lower rate so the higher rate applies only to new purchases. Then use the card only sparingly and always pay off 100 percent of the new monthly balance in addition to the minimum required payment on the old balance. (Make sure the card company first agrees to always apply the first part of your monthly payment to your new purchases before applying the rest to the old balance)

4. Focus on paying down your outstanding debt; you’ll boost your credit score if you get it down to 65 percent or less of your total available credit. Visit free Web sites such as: • creditkarma.com or • mint.com • to help manage your credit

5. Check out the competition. Look for better offers on Web sites such as: • cardratings.com • bankrate.com or • lowcards.com. • Use them as leverage in negotiating with your current card company

6. Read the fine printof any card offer before applying; it often contains high balance-transfer fees and other hidden charges

7. For added information or to file a complaint, contact the Office of the comptroller of the Currency at 800-613-6743 (helpwithmybank.gov) or the Federal Reserve at 888-851-1920 (federalreserveconsumerhelp.gov) SOURCES: Credit Card Nation, Family Financial Research, United Planners Financial Services of America