4 Little-Known Secrets About Credit Card Companies

Speaking of negotiating, have you ever been burned by one of those vexing $35 late fees when your payment failed to reach a credit card company on time? What most consumers don't know is that you can easily have this fee waived simply by calling your credit card company and asking for the charge to be removed from your monthly statement.

The key to a successful request is that you have to have a pretty good track record of paying your bills on time. If you missed four payments out of the past dozen that were due, you're not likely to find a sympathetic ear on the other end of the phone if you call your credit card company.

By contrast, if you have an excellent payment history, the vast majority of banks empower their customer service representatives to waive a late fee, usually once a year.

Let's say you were traveling and neglected to mail your payment before you left, or maybe you were simply busy with work, or thought your spouse had sent in your credit card bill. Whatever the case, if your failure to pay was a one-time mistake, your credit card company will likely overlook this transgression. But only if you ask.

To get the late fee removed, simply call your creditor, briefly explain yourself and ask: "Can you please remove the late fee from my statement?" Most representatives will reply by saying something like: "Yes, as a courtesy, we can do that for you this one time."

You Can Negotiate a Lot More Than You Might Think

Getting a late fee removed isn't the only thing you can accomplish when negotiating with your credit card company. When most people consider negotiations with a credit card company, they often picture themselves asking for a lower interest rate. While that's a good starting point, there are a host of other things you can also ask of your credit card issuer. Among them:

• Change your payment due date (so that all your bills don't come due at once)
• Upgrade your account from “past due” to "current" status
• Remove a negative mark from your credit
• Accept a partial payment in lieu of the total due
• Waive a card's annual fee

Again, each of these requests will carry a lot more weight for if you are a good-paying customer. But there's no harm in asking for what you need even if your credit rating is less than perfect.

They Can Only Raise Your Rate for Six Months

If you've been dinged with a higher interest rate, perhaps because you were late in paying a past credit card bill, don't despair. That "penalty" or "default" interest rate doesn't have to last more than six months.

One provision of the CARD Act, is that there are limits on how long banks can hit you with so-called "default rates" after you've been late paying a bill.

Under the law, default rates can only be charged for six months, provided you pay your credit card bill on time during that period. After six months, your credit card issuer must restore your interest rate to its previous level.

Taking advantage of some of these tips can give you leverage in negotiating with your creditors. This can also help you to better manage your credit responsibly now, and for years to come. Give them a try.

Lynnette Khalfani-Cox, The Money Coach®, is a personal finance expert, television and radio personality, and a regular contributor to AARP. You can follow her on Twitter and on Facebook.

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