Many people demonize credit card companies and see them as pure evil caring solely about money. But treating them as any other business may be a much more pragmatic approach. Who has a real control of a business? Right, an ideal customer that is not supposed to leave.
What credit card consumer is ideal
The trick is that it doesn’t matter that much whether you pay interest or not. Banks like predictable and riskless borrowers. They make profit not only from your interest payments but from every credit card transaction. For example, there is a transaction fee paid by all merchants for the privilege to accept credit cards.
So the ideal client is the one who always pays their balance in full and on time.
And, yes, the one who regularly puts significant spending on their credit card. If you spend, let’s say, $2,000 a month and always pay off your balance in full and on time for many years, then you look ideal to a bank.
How you may benefit from being an ideal client
There are different situations when you need to negotiate with your bank. For example, you may want to settle your debt or get lower rates. And it may be complicated to persuade the bank to meet your needs. However, everything changes when you are an ideal client. All companies care about their ideal clients, and banks are not the exception.
All you need to do is to call your bank and simply ask them for what you want. Of course, your requests may hardly concern debt, otherwise you would not be that ideal. But some accidental troubles like late payments or similar things may be resolved to your advantage. Just remember that occasional means once per year or two.
Be aware that sometimes your needs won’t be fulfilled on the first request. Keep asking. Another rep or a supervisor may turn out to be more loyal. Just find the nerve to call and ask for what you want.
What if that ideal credit card consumer is not you
If being ideal is not your way, then be creative, and it still may work for you. There are always alternative opportunities for any financial situation:
- If you’ve filed for bankruptcy, consider it a process with particular phases, not just a financial fiasco. Each phase has its own opportunities for recovery. Read our manual on life after bankruptcy.
- If you have a charge-off or debt collection, find available credit cards and start rebuilding your credit on the spot.
- If you simply carry a balance on your credit card and are tired of high interest payments, then balance transfers may come in handy. You have many zero interest options with additional perks, especially, if you credit score is good to excellent.
Credit card companies, like any other business, care about their profit. They cannot meet all your needs, but they definitely want to keep their ideal clients.