If an individual has been loyal to his or her credit card company and has maintained a solid standing and reputation with the company, all things would appear to be in order.
However, when a change in terms of service involves a rising minimum payment, the situation can drastically change. Learn what steps customers need to take in order to avoid an impending payment increase.
Credit Card Payment Options
Here are four basic strategies designed for individuals who want to counteract or eliminate a new payment increase:
Close the current account. When an individual receives notice that his or her minimum payment will increase, it can be wise to close or “opt out” of the current account and find a way to maintain the original terms of service. If the customer can maintain the original terms, he or she will not face a new payment increase.
Loyal customers are encouraged to contact his or her card issuer and seek the ability to close the account. The individual’s credit score will suffer by closing the account; however, by reverting to the old or original terms of service the individual’s credit score will automatically increase and improve.
Contact the creditor. Many people are scared to close an account due to the fear of a credit catastrophe. If closing the account is not an option, individuals are advised to gather all payment history, credit score, and any other vital information to prove a strong customer standing.
The idea is for the customer to build up his or her “loyal standing,” and then ask for a way to remain at the original minimum payment structure. Remind the creditor what a loyal customer is all about and how important the service of the customer is in the big picture.
Remain diligent. Of course “diligence” does not mean “harassment,” but it’s always a strong idea to make the presence of the customer known to the creditor. Let them know the situation, and also let them know what an increase in minimum payment may do to the customers future dealings with a given credit card company.
As a loyal customer, it’s important to always be treated in a respectable fashion. Never harass or insult by any means, but never be afraid to demand what the individual believes to be fair. Let the creditor know the consequences of increasing the minimum credit card payment.
Balance transfer credit card. If it becomes apparent to the customer that he or she is stuck with the new increased minimum payment, consider opening a balance transfer card or transfer the balance to another card that is currently open and available.
Credit Card Payment Evaluation
Before the customer decides to consider any of the options listed above, it’s important to evaluate the financial situation caused by the increased payments. Customers are advised to “speak up” when the new terms do not meet an individual’s financial situation.
However, it’s not wise to make a swift decision just because the terms of service have changed. It’s never a good idea to risk a solid credit standing just to avoid paying a new minimum payment.
Many times customers can simply find a way to work around the payment increase without resorting to contacting his or her creditor. Customers are advised to evaluate all personal options before seeking other alternatives.