Credit cards can be tricky; there are so many options out there with fine print and loopholes. It’s not uncommon we find ourselves with a card and only after we’ve signed up we realize there are things we would like to change. Here are 4 simple changes you can make on your card made easy, you can simply pick up the phone and give your credit card supplier a call.
Late payment fee
We’ve all been there, it’s the beginning of a new month and you have other things going on, you’ve forgotten to send in your monthly payment and now your slapped with a penalty fee. This is a pesky charge that can be so easily avoided, and over time these penalties can add up.
- Many people think they have no choice and just pay the fee.
- What they don’t realize is often times calling customer service and simply explaining your situation can result in the void of a penalty fee.
- Credit card companies want to keep their customers, if you have been consistent on your payments and slip up one month, often times your company will be happy to work with you.
- Just don’t make a habit of it!
Set interest rates
When signing up for a card you may have over looked the interest rates applied. Depending on what you were in the market for, a handsome reward program could have made the percentage seem worth it. But once the monthly statements start rolling in your tune may change.
- All it can take is a simple phone call and the right wording to get a lower interest rate.
- Much like late fees, many people don’t realize it is a possibility to change this feature on their credit card so they never try.
- Some consumers feel that unless they can significantly drop their interest rate it’s not worth your while. That attitude certainly won’t say you any money!
- Even a 2% drop in APR over time can yield high savings. “Every penny counts!”
Bonuses offered at sign-up
One of the main ways credit card companies get people to sign up is by offering sign-up bonuses. 0% APR for the first 12 months, no late fee for your first late payment etc. ,these sound great until you do some research online and find that other cards have handsome offerings you’d like to take advantage of.
- This is something you will have to negotiate prior to signing up for the card
- Many companies will be happy to match other offers if it’s a decent credit card issuer.
- You will have to do your research on the competition prior to calling up the company and making your offer
- Much like late fees and interest rates, many people don’t think they can negotiate this aspect of a card so they don’t try. But it’s certainly worth the effort, as most companies will try to meet your request.
- Added bonus, if you have a strong credit score then companies will be more inclined to change this feature for you.
So you’ve signed up for a card with a set credit limit and you want to increase it. Seems like a tough luck situation right? Wrong! There are many benefits in increasing your limit such as
- Lower usage percentage (remember it’s recommended to only tie up 30% of your limit). By increasing your limit you will simultaneously lower your usage ratio.
- Give you more wiggle room should any emergencies present themselves.
Many people assume that they cannot change this aspect and therefore look to open another card instead, which can also be damaging to your score. What people don’t realize is that a simple phone call can change their credit limit quite easily.
- You won’t be able to double your limit but will have a higher success rate if you increase your credit limit little by little.
- It is important to note that your credit card issuer may take a long hard look at your credit score before deciding whether to issue you a credit line increase. This can result in a drop in your credit score, however it is only temporary.
- In the grand scheme of things it is worth the increase if you feel you need it.
It’s important to be aware of the power you have as a consumer. Educating yourself to the possibilities available to you can help you save money and better manage your finances and credit score. That being said, it is also important to know these are not fool-proof tips. There is no guarantee that you will be able to change features on your card, but it’s certainly worth a try. For further information on how you can get the most out of your credit card, check out the video below.