With the credit card market being as large as it is, changes are happening all around us. Credit companies are making changes to stay competitive in the market which could end up being beneficial for customers. Simply contacting your credit card company could result in more savings in your pocket than you would think. A survey done by Creditcards.com found that of 952 credit card holders, 8 out of 10 people who inquired or made requests from their credit card company were successful. Let’s examine this survey closer and take a look at several ways simply reaching out to your credit company could be beneficial for you.
Waived Fees
Are you facing high annual fees on your credit cards? 82% of people in the survey done by Creditcards.com had their fees waived by simply reaching out and asking. The reason for this is due to the high competition amongst credit companies and their need to keep customers happy as to not lose them to the competitors. Of course, this is not the case for all credit companies and depend on each individual situation, but it can’t hurt to try especially if you have strong credit and a solid history of making on-time payments with your credit card.
Lower Interest Rates
Are you receiving high interest rates on your credit cards? Nearly 70% of those who inquired about lower interest rates were successful. Lower interest rates mean less money coming out of your pocket on outstanding payments. The study reports that only 19% of people requested lower interest rates, however, 13% of those people were successful (69%). Similar to the waivers on annual fees, this is contingent upon each individual situation.
Higher Credit Limits
Are you wanting a higher limit on your credit card? 89% of people in the survey reported receiving a higher credit limit after contacting their credit company. Why isn’t everyone doing it? The study reports that only 28% of people requested a higher credit limit but of those 28%, 25% were successful (89%).
As you can see, credit card companies are a lot more flexible than one would think. It seems so simple yet still not many people ages 18 to 26 have ever reached out to their credit card company (almost 7 out of every 10 millennials reported never having done so). Next time you believe your annual interest rate is too high, want to negotiate a higher credit limit, or feel like a fee isn’t justified, don’t let it go without reaching out to your credit card company first! You never know what could happen by asking.
Schedule an appointment with Powercat Financial today to learn all you can about credit, budgeting, student loans, and more!
Sydney Johnson – Peer Counselor I
Reference: http://www.creditcards.com/credit-card-news/late-fee-waiver-poll.php
