If you have bad credit, you won't get good credit card offers, and your current lenders won't work with you. They have the advantage: You need them more than they need you. If you need the money badly, you'll accept even terrible interest rates, they figure. But the converse is true, too. If you have a good credit score, you can bargain very successfully with your lenders for better rates and terms. No annual fees. Better interest rates. Better perks and points and cashback prizes. It's all available to you if your credit score is good, if you'll do some homework, and if you know how to bargain. Lenders want to keep their customers. If you can make them think you're considering leaving, and if you've been a good customer, they'll try to keep you. That's the benefit of competition. Here are some tips on how to get the best terms with your card: First up, get your credit report and score. The credit bureaus must provide you with a free one once a year, if you ask. If your credit score is good, you'll have much better success in bargaining. Then, decide what your main priority is. If you carry a balance on your card from month to month, a lower interest rate is probably in your best "interest" (pun intended). If your card charges an annual fee, maybe you want to get rid of that. Perhaps traveling is your thing and you want to rack up travel points more quickly. Figure out what you want the most, and make an ordered list. That's when it's time to do some legwork. Go online and look at the many, many good credit card offers that are out there. Find the cards that would be ideal for you — the ones that give you the most things you've put on your list. Pay attention to hidden things like introductory rates or balance transfer fees. The small print can be dangerous! Read it! Once you've looked at lots of potential credit card lenders, and found the ones you would choose if you were getting a new card, you've got what you need to go in and do business with your current lender. Basically, your job now is to convince your current lender that you will cancel your card and sign up for this other one unless your lender can match the terms of the new card. Simply ask for a lower interest rate. You'd be surprised how often that works. If the customer service representative says no, ask to talk to a manager, or call back another time. Keep in mind that it's their job to say no, while it's the supervisor's job to keep customers happy. Know how the system works and use it for your own gain. For all of this to work, though, you must have some leverage. Keep your credit score high, maintain good credit history, and pay your bills on time. Credit card lenders know they have hundreds of competitors, and they all want your money. Let them fight amongst themselves for your business, and you'll come out ahead every time.
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