Reducing credit card fees isn’t impossible, it just takes a little time and negotiation skills. Most people don’t realize that fees on credit cards, as well as interest rates, can be negotiated. With lower interest and fees, it will be easier to pay down debt and free up more money to save and invest. To get started it will help to know your credit score and know what other companies are offering if you were to transfer your balance. Then call your credit card company and ask for reduced fees and interest rates.
A great credit score and on-time payment history will help when negotiating reduced credit card fees, yet those with less than great credit and an occasional late payment can be successful in negotiations as well. Just don’t give in. The customer service agent who represents your credit card company will be trained to say no first. Yet credit card companies are in business to make money, and they make the most money having clients with larger balances. If you tell them you plan to transfer your balance to another card if they don’t compromise with you, odds are they’ll call a manager over and try to work out an acceptable agreement.
On the odd chance your credit card company gives you a hard no to reduced fees and interest rates, transfer your balance to a zero-interest card or consider applying for a debt consolidation loan at your bank. Both options offer reduced fees and interest rates which will help you put more money each month towards the principal amount owed. For more financial tips, or investment management advice, contact Alloy Wealth Management at 800-689-3935.