Credit Card Negotiations
Here is a guide to negotiating with creditors on your own
Some people seem to think that their credit card conditions are set in stone. They feel they’re bound by the interest rates on their bill and have no room when it comes to fixing any issues they might have.
Here’s some good news: you are on a two-way street when it comes to creditors. Armed with a strategy and good negotiation techniques, you can set yourself up for a much better situation that will save you money in the long run, and help improve your credit profile.
People often look for expert help when it comes to negotiating big-ticket items like buying a house; dealing with your creditors might be no different. If you feel up to the task, review the tips below and they may help you make some headway with your lenders. If you need more assistance, call Consolidated Credit today for free at to speak with a trained credit counsellor or get started online with a request for a Free Debt Analysis.
How to establish goals
Before you call your creditor, it’s important to know exactly what you want. Negotiating with creditors is a dynamic process and there is no set conclusion that is always reached at the end of a call with your creditors. When you negotiate with your creditors, you can:
- Negotiate to lower your interest rate if you are a customer in good standing.
- Negotiate for the removal of penalty fees and penalty interest charges when you fall behind on payments.
- Negotiate for a fresh start (known as “re-aging”) on a delinquent account, including forgiven late payments, eliminated interest charges from paying late, and removal of negative activity from your credit report.
- Negotiate to temporarily adjust your payment schedule if you are unable to make the scheduled payments on your account.
Your goals may differ from card to card. Negotiate with as many or as few creditors as you need in order to reach the desired results.
How to negotiate
Having goals and knowing what you want is the first step, but it won’t guarantee that the creditors will automatically sympathize with you. Be prepared for pushback and resistance from your creditor, and keep these tips in mind:
- Have an accurate household budget on hand to help you state your case.
- Be calm and concise during the negotiation process; don’t let emotion get in the way.
- If you were a responsible debtor but fell into delinquency due to job loss, recession, or a medical issue, make that clear to your creditor.
- Some people are more empathetic than others. If your first representative refuses to negotiate, thank them for their time, collect yourself, and call back later to speak with a different representative.
- Be open to compromise, but don’t give up too much ground or you will get nothing out of negotiation. In the end, it has to be a result that works for you.
This last point can be confusing to people, because there is no absolute right or wrong answer for how much you should compromise. What do you want to gain? What can you afford to lose? For example, if you’d like to temporarily adjust your payment schedule, your lender may also wish to lower your credit limit. In this case, it would be an acceptable result because you get the reduced payments you desired, while the creditor gets some assurance that you’re serious about getting back on track.
What to do if your negotiation fails
Do not despair if your creditors refuse to accept your proposed terms. They are expert negotiators, and it may be time to get expert negotiators on your side.
You may be able to accomplish your goals by enrolling in a debt management program (DMP). A DMP is designed to negotiate with creditors on your behalf to decrease interest rates and also decrease the amount you pay each month. Your credit counsellor may also be able to negotiate with creditors to remove penalties and reduce or eliminate the interest applied to your debts. So, if you feel like you are in over your head and your negotiation efforts have failed, know that a debt management program may provide some of the benefits you were hoping to achieve.
A trained credit counsellor is an expert at working with creditors and negotiating with them on behalf of consumers. If credit card negotiation on your own has failed and you need help, give us a call at to speak with one of our trained credit counsellors to get started with a Free Debt Analysis.