The simple answer is yes, but your success in this really depends on what your situation is and what you hope to accomplish.  

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Negotiating with your credit card companies is one of the do-it-yourself projects that many people rarely consider taking on.  It can be a very daunting task, but it can also come with great rewards.

Below are some tips on how to negotiate with your credit card companies, from trying to reduce your interest rate, to having a fee returned, or to settling an unpaid debt in collections.  

Where to start

It’s hard to believe that you can call the toll-free number on the back of your credit card and cut a deal with them or change the terms of the credit card, but you can.

First, figure out exactly what it is you are wanting to achieve.  You need to be specific with them about what it is you want.

It will help to understand if you are approaching them from a position of power or one of weakness.  

Do you have an excellent credit history with them and have multiple other options on where you could move your business, or are you frequently delinquent on your payments and the credit card company doesn’t know if they are going to get paid from one month to the next?

Let’s look at both scenarios.

Negotiating with credit card companies when you hold the power

If you hold the power and your credit card company needs to be competing for your business then there are a few asks you can be successful with. Banks value long term customer relationships and loyalty.

The longer you have a relationship with a bank, the less likely you are to switch as your finances become integrated around that bank.   

What can be negotiated:

• Interest rates – These can be lowered based on a limited time offer and sometimes even on a permanent basis.  
• Annual fees – The credit card company may agree to waive the fee one time or to reduce the annual fee.
• Credit limit – this will be very dependent on credit score and past payment history
• Late payment fees – if late payment is abnormal for you, you may be able to have the fee removed or reduced if you call in and explain the situation, if a payment was inadvertently missed.    

Remember that you must give credit card companies a reason to offer a lower interest rate.

Just asking for an interest rate reduction is unlikely to yield success, however knowing what competing cards are offering is critical.  

Being able to specifically and accurately quote the rates on a comparable card will put you in a strong position. Researching what else is available may show you that you actually have a pretty good deal.  

You need to ensure you are comparing similar offers. For example, if you have a travel rewards or cash back card, those are the cards at competing firms that you need to compare.  

If you speak to the credit card company and reference a different type of card than the one you have, the credit card company will likely just suggest you switch to the card they have that compares to the one you are referencing.

Go in with an open mind and a view that if you don’t ask, you wont get and always remain polite and respectful even if you aren’t successful.  At the same time, if there is a comparable card out there with better terms, be prepared to make the switch.

Negotiating a lower credit card interest rate when you really need help

Unfortunately, this is when it becomes more challenging.  But even when you hit a financial crisis, the principles remain the same: know what you want and also what you can live with.

When you are delinquent on your accounts you have a different power. The credit card companies know that they must work with you – if they push you into a corner you, you may feel you have no option but to go underground or consider bankruptcy.  

But the sooner you start conversations and negotiations with the credit card companies the better. The longer you are delinquent, the further down the line your debt travels and will end up at collections or possibly even with the lawyers.

What can be negotiated with credit card companies?

Depending on how far along your situation is, you may see some relief from them through the waiving of late fees and/or temporally lowering the interest rate.

If it’s a temporary financial setback and you know your situation will improve, you may be able to agree an interim lower monthly payment without any impact on your credit score.

Give them a why and a when

• Explain your situation in order to make it human for them and not just about dollars and payment dates. This will help them understand why you can’t afford the current payment arrangement and why you may have already missed payments.
• Be realistic and don’t over promise. Provide details of how much you believe you can pay and how long it will be before you can get back to normal payments.
• If they don’t agree right out of the gate, be patient, polite and persistent and keep the communication open. If you reach an agreement, get it in writing.  

If the credit card companies aren’t willing to work with you or you see no way out of your current financial situation, you will need to look at more extreme measures and seek professional help.