Credit Repair Secrets: Five Negotiating Tips
November 1, 2009 by Tiffani G Peterson
Filed under Bad Credit
When it comes to credit repair secrets, the sky is the limit. Let’s go over 5 tips on negotiating the best credit deals you can get.
Tip #1 Ask
Credit card companies are constantly competing for your business. It’s easy for consumers to switch to another company so you can get all sorts of better terms just by asking. If you need a reason tell them you’ve been a good customer, made your payments on time, etc. Even if you don’t have perfect credit, companies want to keep making money and will almost always offer better terms to keep you happy.
One friend of mine called to cancel her card because she’d maxed it out and wanted to avoid the temptation to use it again once she paid it down. To try persuade her to keep it open, the company offered to reduce the rate to zero and let her make payments that fit her budget better. That’s to say that some credit card companies are ready to offer you a settlement kind of deal without even having to go through an of the standard collection procedures first.
Tip #2 Leave room on your credit cards
When you have additional spending limit on your cards, you can do a balance transfer if one card doesn’t give you as good a deal as you’d like. If you’re wanting to extend your credit lines, the best way to do that is to maintain a balance of around 30% of your limit. That way the creditor is making money on interest and can see you’re handling it responsibly.
Tip #3 Let credit card companies compete against each other
Having a better deal somewhere else is the easiest way to get a good deal. Credit card companies know they are a dime a dozen and will give you whatever deal necessary to keep you. If you can make a balance transfer out of their account, they’ll be more willing to work with you. If not, make the transfer and then see what kind of deal they’ll give you to get it back.
Tip #4 Keep your credit as clean as possible
This probably doesn’t need much explanation. The more credit worthy better customer you are, the better deal you’ll get. If something happens so you can’t make all your payments, prioritize things. It might make more sense to stay current on your best accounts and let the bad ones slide this time. Of course don’t loose any collateral in the process.
Tip #5 Know the true value
There are more things you can negotiate than just the interest rate. When assessing the value of an account, consider any additional fees, any bonuses for using the card, if a low rate is temporary, etc. You can even ask to have negative items removed from your credit report if you ask. The only limit is what you’re willing to ask for.
At the end of the day, the key to negotiating is to know where you are and where you want to be. Then get out there and keep asking until you get what you want.
Find out how to do your own credit history repair without an agency. Visit www.creditrepairsecrets.org for free credit advice.
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