How to Write a Credit Card Negotiation Letter
Maybe you just lost your job or your hours were reduced. Maybe you just received your credit card statement and the interest rate has been increased and/or your minimum payment has skyrocketed. Whatever the reason, a letter to your credit card company can help you negotiate a compromise on the terms of your card.
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Instructions
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1
Look at your current credit card bill carefully. Write down your balance due, available credit, minimum payment and APR.
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2
Look at your previous month's credit card bills to compare the same information and see if anything has changed. Note what has changed and when. (If the change is in your balance due to new purchases you have made, disregard the change.)
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Decide what you want to negotiate with the credit card company. Did it raise your interest rates? Your minimum payment? Did the company cut your credit line in half?
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Find the corporate and customer service addresses for your credit card and be prepared to send your letter to both addresses. Going right to the top of a company may help you in your negotiations because upper management usually has the power to assist you.
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Be honest in your letter. Remind the company how many years you have been a customer. Stress what a good customer you have been, noting the exact number of years or months of on-time payments you have made. Let the company know how your circumstances have changed and/or what it has done to your account that you would like changed.
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Include proof of lower income: copies of pay stubs or, if you have lost your job, photocopies of unemployment checks. Let the company know how much you can pay based on your monthly income and other bills. Many credit card companies would rather come to an agreement with you to get some money rather than charge off your account for nonpayment.
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If you are upset regarding an increase in APR, tell the company how the increased interest is affecting your ability to pay with the same information above. Request that the card company lower the APR to its previous rate or a lower rate than you currently have.
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If you are upset due to a decrease in your credit line, ask your card company to increase your limit again because it is affecting your utilization and lowering your credit score. Many banks will work with you if they receive a letter from you that shows you are willing to do your part.
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End the letter with a few words of thanks and provide all contact information. Inform the company that you are open to any correspondence and that you hope to remain a customer for a long time.
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Send the letter by certified mail so that you have proof of delivery.
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