8 Credit Card Negotiation Hacks

Credit card companies want money. At any cost. They want the money they are owed — with interest. They don’t want to see you declare bankruptcy. That declaration means a clean debt slate. As appealing at that might sound (cue the angels!), it’s tough to recover from bankruptcy quickly.

So while you might have a lot of debt, you also have the upper hand (at least when it comes to credit card companies). Most people don’t know how to play that hand. We’re going to show you how.

1. Find your ducks. Write down the name of each card, the amount owed, your current credit limit, and how long the present interest rate will last. Take the ten minutes to do it right.
2. Stop wasting your time. Call the number on the back of one card — but don’t stop at the first person that answers the phone. Immediately ask to speak to a supervisor. Right away. Don’t dawdle. Supervisors have more negotiation powers. It’s just a fact.
3. Stop reading negotiation tips. Not these tips. The ones that tell you to create some elaborate story with the hopes of negotiating. Tell your story. The real story. The one about the student loan debt, mortgage, car payments, and the job that doesn’t cover the bills. Talk about your kids. Be real. The person you are talking with will relate.
4. If you have other offers, you might want to use those. Note that I said ‘if.’ Don’t say you have other offers if you don’t. Sometimes, stating that you can go elsewhere is enough to give you good leverage. Sometimes it doesn’t matter at all. Try it.
5. Not getting anywhere? If you have another credit card you can transfer your balance to — otherwise do not do this! — call back those companies that would not negotiate and ask to close your accounts.
6. Aha! Suddenly those companies that didn’t want to negotiate want to talk, right? These are called ‘customer retention experts.’ Or, ‘people that will offer you anything if you agree to keep your account open.’ Why didn’t they just do that to begin with? It’s had to tell. Really. But, that’s the way it goes, so let them try and retain you.
7. Hang up. Well, first get the name and direct number of the retention expert. Then, think about it. Think about all the offers you have. Figure out the best one (kind of like dating). Call that company back.
8. Make the payments. You used your client power to negotiate your credit card debt. You probably got more confident with each call. You might have realized that you aren’t powerless. You may feel your muscles popping out, your chest getting bigger, your superhero skills developing (did you really just move that pencil with your mind?!) — slow down, superhero. Don’t get cocky. Make the payments. Every month.

Get out of debt. Stay out of debt.