The Art of Negotiation - Your Business Credit Card, Your Interest Rate, and You

Imagine the next time you join a discussion about Credit Card. When you start sharing the fascinating Credit Card facts below, your friends will be absolutely amazed.

Warning: The following article is going to give you tips and tricks on how to best negotiate with your credit card company on lowering the interest rate on your business credit card. Proceed with caution if you do not want to save time and money.

Your interest rate defined: A pesky little (or large) number that pretty much sums up your credit rating. Your interest rate on any credit card is almost always determined by your credit score; the higher the rate the lower your score and the higher your score the lower your rate. Other factors that factor include the current prime rate and the credit card company's fine print policies. But for all intents and purposes, your credit score makes or breaks your interest rate.

In any case, the most important thing for anyone to consider before they call their credit card company to negotiate a better interest rate is their current credit score. If you don't know your score, here are some signs that you might have less than stellar credit and, thus, a lower score:

* Have you made multiple late payments?
* Are you hit by fees more often than not?
* Have you gotten dinged for going over the limit?
* Do you have multiple cards that are maxed out?

Unfortunately, if you responded yes to one or more of these questions, your chances of convincing your credit card company to lower your rates are somewhat slim. Think of your high interest rate as punishment for being a bigger liability to the nice folks that offered to lend you money. But don't let this get you down. What do you have to lose by calling anyway? And if you can't work anything out with them, take this time to buckle down and work maintaining your finances. In just a few months time, you may find that your creditors are willing to work with you.

On the other hand, if you have acceptable credit and a good payment history with your credit card company, you have the leverage you need to negotiate a better rate. Pick up the phone and get ready to speak with the next available representative! And while you are on hold, think about these few key points:

So far, we've uncovered some interesting facts about Credit Card. You may decide that the following information is even more interesting.

Be Confident

If you think you deserve a decreased interest rate and have the evidence to back this up, then by all means let them know this by exuding confidence. Speak up and don't be afraid to ask for what you want. The worst thing that can happen is that they will say no.

Be Polite

There is no need to argue and be rude. However, if being polite and nice is going nowhere you can always resort to...

Idle Threats

Only the good kind of course! If they are not willing to negotiate with you at all, not even for a ½ of a percent, then you can inform them that you have been a great and loyal customer over the years and that you deserve to have a lower interest rate. If this isn't getting you anywhere, imply that you have the option of taking your business elsewhere. If you are a good customer, they have no reason not to work with you. After all, they make money when you pay them interest and 19.8% interest on a closed credit card is $0.

Negotiating a lower interest rate with your business credit card company is a risk but it's a risk worth taking. Research, prepare, be polite ... and have a backup plan if they turn you down flat. A different business credit card with a fantastic introductory rate is just an application or two away! Just make sure it comes with a balance transfer option so you can follow through on your promise to close your account if they refuse to play fair.

Knowing enough about Credit Card to make solid, informed choices cuts down on the fear factor. If you apply what you've just learned about Credit Card, you should have nothing to worry about.