Organizing All the Angles before Negotiating a Better Rate
Last time we discussed the benefits of rebalancing your debt load. This time we need to take a half step back and employ a very useful tactic.
Three Way Negotiating Dynamic in Your Favor
Before you actually transfer a balance, call the card where the balance resides and tell them you intend to transfer a portion of your balance or the entire balance if that is the case, but be specific. Then ask the company holding the balance today to give you a lower rate before you use the balance transfer. This will save you a cash advance fee and that can be very important even if they are only matching the rate!
You should also ask for a lower regular rate as opposed to a teaser rate. Tell them that you would like to keep things where they are not just for the next 3-6 months, but until the balance is paid in full.
If they can’t give you a lower regular rate then ask for a teaser rate and if that doesn’t work, then transfer the balance.
Know Your Credit Report
Order a copy of your credit report and study it in detail to understand how you will look to your credit card company at this point in time. Keep in mind that they will look at your history covering all of your creditors and not just your single account with them. If you find any errors or omissions, note them and take actions to correct them, but be ready to describe them on the phone and fill in the gaps. Similarly, if the credit report lags behind the actual status of your accounts by a month or three, be ready to do a fast reconciliation explanation on the phone.
For More Information see:
Part 1: Prepare Before You Call Your Credit Card Company for a Better Interest Rate
Part 2: Credit Curb Appeal for Credit Card Rate Negotiations
Part 3: Paying Down Debt Positions a Better Rate Negotiation
Part 4: Researching and Scripting the Pitch to Lower Your Credit Card Rates
Part 5: Credit Footprint Improvements Prior to Rate Negotiations
