December 16,2008
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Ever-changing CC Approval Climate, Pt. 4
– If You Want it, Just Ask.If we've learned anything from the first three articles (supplemented by the further hyperlink references in Part 2) than the follower would do well to receive the rewards sooner, rather than later. Once a credit card holder has achieved a score in the 700s, that person is in a stronger bargaining position. The more leverage, the better. Never late on credit card payments and maintaining a 30% debt ratio is very attractive to lenders. Since FICO is the prime controller, it's important to track it. If you want an easy way to track your FICO, open a credit card account with WaMu. They're excellent to work with and the free online tools they offer to customers are superb. Remember, if credit card lenders are to survive in this competitive market, they need all the good customers they can get and they don't want to lose those they have. The climate is cooling for lukewarm customers, however.
Armed with a good FICO score, a little negotiation can go a long way. Know and understand your FICO score. If a better credit card deal is very important, request a copy of your credit report from one (or all) of the ‘Big 3' – TransUnion, Experian or Equifax. A convenient way to get a free copy is found at https://www.annualcreditreport.com/cra/index.jsp. Each of these national rating agencies will provide one free copy per year. After that, there's a fee. Credit reports can be very lengthy so, unless you suspect there are issues, you probably won't need this much depth for credit card negotiations.
Next, call your existing credit card lenders or any new ones who have sent you (or your friends) offers (good or bad). Don't waste time, cut to the chase (diplomatically, of course). Ask for the best deal they currently have going. Many of the best are not well advertised. The first person you get on the phone may not be the decision-maker, but they still want to make the sale and get a favorable survey rating by you.
If you just want to reverse a recent rate hike on a credit card you like, plead your case. It's like returning merchandise to the store – they wish you wouldn't and won't encourage you. But, if you plead your case (even a lame one) they'll usually accommodate. It's all in the numbers – they expect a few to do it, knowing that most will not. Always be diplomatic, cordial and not whiney.