Shopping around for credit card deals these days can seem like walking into a Moroccan bazaar: Everything is negotiable and savvy haggling can save you a bundle.
Start from a position of strength. Anyone can ask for changes, but those most likely to get the best deals are obviously preferred customers. You have more negotiating power if you pay your bills on time, use the card regularly, and carry a small balance from month to month.
Here are three card tricks that smart borrowers need to know:
Card Trick #1. Negotiate a higher credit limit if you want more flexibility during a temporary cash crunch or an emergency. Some companies boost your credit limit automatically if you stay with a card for awhile and keep your account up to date. But generally, if you want more credit, you need to ask. It only takes a simple phone call.
Card Trick #2. Lower the interest rate. Obviously, the higher your rate, the more you're paying to borrow. Interest rates aren't set in stone, and many companies will lower the rate to keep you as a customer.
A word to the wise: Watch your monthly statements closely. You may find the 9.9 percent "come-on" rate you were paying in February has been raised to 15 percent in June. Don't accept this. Call and ask that the rate be lowered. If the company balks, tell the customer service representative you've been offered a lower rate and will switch to a new card. Often, that's all it takes to get a company to meet some of the lower rates you're probably offered every day in the mail.
However, beware of several traps if you do switch credit cards to get a better rate. Some credit card companies charge a transfer fee to move balances from other cards to a new one. Read the fine print.
Card Trick #3. Get the annual fee waived. Many credit cards have no annual fee today, so most companies routinely eliminate the fee if you ask. If a customer service representative says no, ask to speak to a supervisor who likely has the authority to approve your request.
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