This review list is intended to educate you about this document and to guide you in its preparation. This letter is an attempt to improve your credit card company’s conditions. As is the case with most discussions (see also our Negotiations Handbook CD), the most prudent course of action is to narrow your subject. In this instance, you should either request the yearly charge be eliminated or reduced, or a lower interest rate on unpaid accounts. To request both is to take the risk of receiving neither. The most effective method of eating an elephant is one mouthful at a time. If you focus on one item and obtain it this year, you can request the other item the next year. Credit card firms, like many suppliers, are prone to accept incremental compromises. This one may be small enough to be handled by the order clerk at the first level. If that is the case, you are almost certain to obtain it. Then, repeat the same the following year and perhaps you can obtain it as well. As Wall Street is fond of saying, “Be a bear, be a bull, but never a pig!”
Credit Card, Negotiations For Better Terms
Credit Card, Negotiations for Better Terms
Name on Account:
Account Number:Dear Customer Services Representative:
This letter serves as notification of my refusal of the new terms offered by you in connection with my credit card. Please cancel my credit card unless you will do the following: _____________________________________________________________
___________________________________________________________.
I will assume that the account has been closed unless I hear that you have modified your terms as requested above.Thank you for your good services to date, which have been much appreciated.
Please let me know of your decision at your earliest convenience but without disrupting your normal review process timetable.
Best regards,
___________
WriterCredit Card, Negotiations for Better Terms
Review ListThis review list is provided to inform you about this document in question and assist you in its preparation. This letter is an attempt to negotiate better terms with your Credit Card company. As with most negotiations (see also our Negotiations Handbook disc), your most promising approach is to narrow your focus. In this case, you should either ask for an elimination or reduction of the annual fee or a lower interest rate on unpaid balances. To ask for both is to risk getting neither. The best way to eat the elephant is one bite at a time. If you focus on one item, and get it this year, ask for the other one next year. Credit card companies, as with most suppliers, are apt to accept small concessions, one at a time. This one may be small enough to be discharged by the first level of order clerk. If so, you will probably get it. Then, take the same tactic next year and perhaps you can get that as well. As Wall Street says, “Be a bear, be a bull, but don’t be a pig!”
Frequently Asked Questions
How do I write a letter to negotiate better terms with my credit card company?
The article provides a template letter that you can adapt. It begins with a notification of your refusal of new terms, then states that the card should be canceled unless the company agrees to your requested changes, which you list in the blank spaces. You then indicate that you will assume the account is closed unless you hear that your terms have been modified.
What should I include in my credit card negotiation letter?
According to the article, you should clearly state your refusal of the new terms and specify the modifications you want. The template includes blank lines where you write your requested changes. You should also mention that you will consider the account closed if you do not receive confirmation that your terms have been accepted.
What is the best strategy for negotiating with a credit card company?
The article advises that your most promising approach is to narrow your focus. Instead of asking for multiple changes, you should concentrate on one or two specific requests, such as the elimination or reduction of a particular fee or rate. This focused approach is more likely to succeed.
Can I cancel my credit card if the company won't negotiate?
Yes, the letter in the article states that you refuse the new terms and requests cancellation unless the company agrees to your modifications. It also says you will assume the account is closed unless you hear that your terms have been modified. So cancellation is presented as a consequence if the company does not meet your requests.
What should I do if my credit card company changes the terms?
If you are notified of new terms you do not accept, you can use the letter from the article to refuse them and propose alternative terms. The letter serves as formal notification of your refusal and your request for modification. You should send it to customer service and await their decision.
How do I ask for a lower interest rate on my credit card?
The article suggests narrowing your focus when negotiating. You can use the provided letter template to request a reduction in your interest rate as one of your modifications. Fill in the blank lines with your specific request, such as asking for a lower APR.
What is a credit card negotiation letter?
A credit card negotiation letter is a formal written request to your credit card company asking for better terms. The article provides a template that notifies the company of your refusal of new terms and proposes specific changes. It also states that you will cancel the card if your requests are not met.
Should I close my credit card if I can't get better terms?
The article's letter template includes a provision to cancel the card unless the company agrees to your requested modifications. It states that you will assume the account is closed unless you hear that your terms have been modified. However, the decision to close the account is ultimately yours.
How long should I wait for a response after sending a credit card negotiation letter?
The article does not specify a time frame. The template letter asks the company to let you know of their decision at your earliest convenience but without disrupting their normal review process timetable. This suggests allowing the company to follow its standard procedures.
What tone should I use in a credit card negotiation letter?
The article's template uses a professional and polite tone. It thanks the company for their good services to date and expresses appreciation. It also makes clear your refusal and request without being confrontational. Maintaining a respectful tone can help in negotiations.
