How to Work with Your Credit Card Company

Armed with a few facts, you can learn how to work with your credit card company to obtain lower interest rates. The first thing you'll want to do before beginning your conversation with your credit card company is to find out what your credit score is. You can do this by checking your FICO (Fair Isaac and Company) score at www.MyFICO.com or at the website for any of the three credit bureaus — TransUnion, Equifax, or Experian. You'll be better able to work with your credit card company if you have an accurate idea of where you stand as a cardholder.

The next step is to do a little market research. Find out what the best offers are on new credit cards — which companies have the lowest interest rates, the lowest annual fees, and the best perks such as frequent flyer miles and other travel rewards, accrual of points toward merchandise or services, or cash back offers. If you qualify for a card with a special offer, you can share this information with your current credit card company.

How to negotiate with your credit card company

Generally, unless you have defaulted on your account, the credit card company wants to work with you and keep you as a customer. Start by telling them that you qualify for a card from a different company that is offering low or no interest during an introductory period and ask them if they can match the standard rates on that card. Bear in mind that credit card companies have guidelines they must work within so your best stance for negotiation is to be reasonable. The worst thing that can happen is there’ll be no change and you will continue to pay based on the current terms of your card.

Rebuilding your credit

If you are on the other end of the spectrum — a customer in default whose interest, fees, and penalties continue to rise — there’s another way you can work with your credit card company. Ask them to close your account and set up a payment plan on the final balance. Your willingness to take responsibility for your debt, then making payments on time, will go a long way toward repairing your credit.