Different Rate and Facility on Same Plastic Card

I was also astonished, when I, first time, came to know about different rates and fees on same credit card. Since then, I have heard this kind of story for Master, Visa both. Though AMEX seems to be better in this aspect.

Unlike American Express and Discover, MasterCard and Visa are not actually banks. They are ‘associations’ that set the rules for merchants and credit card issuers.

In fact, it depends upon the card-issuer or bank that offers several different rates and fee schedules.

I know you have better terms to offer

That’s why you must clearly understand the different services, given by different cards and fee structure before going for MasterCard or Visa.

Plastic card companies have business deals with many banks. Services, features and perks depend upon these combination.

One should choose her card depending on her own lifestyle. As an example, for a traveler, Citibank Advantage may hold good.

So you must be thinking the difference between rate and fees depends on the branch or bank only.

No! Wait a minute. You’ll be surprised to know that two customers of the same bank and same branch can also have different services and fees. Sounds odd! But its very true. I have a friend who works in a bank and she told me that the bank, sometimes, offers different facilities to different customers, if asked.

Say you want to have a credit card. Sometimes it may happen that they started giving you more facilities, if you tell them that you’ll go to another bank for availing credit card because you are not happy with the heavy fee and service. But be sure that you can really get a credit card from another bank before saying this kind of thing. But again, this trick, sometimes, can get you better deal.

Tips : Negotiation with Creditors

A friend of mine asked me if there was any alternative of bankruptcy.

Yes of course, there are many alternatives. One of the most effective way is to negotiate with the creditor

Creditors understand that bankruptcy is an option for debtors with excessive debt. So most creditors are willing to negotiate a settlement so that they receive at least a portion of their money, instead of risking losing everything in a bankruptcy. That’s why negotiating with your creditor may waive off many things like late fee. There is a chance of calculating your payment with reduced interest rate also.

There are few things, you should keep in mind while negotiation:

The address on your bill is for payment only. You have to find a proper mailing address, where you should send all correspondence regarding your negotiations.

I am bankrupt. I can't abide by your terms. Better you follow my rules. PLEASE!!

You must use registered mail with receipt. This will make your creditor honor whatever you send by mail. Besides you can produce those in court also.

Don’t just call them. Have a specific plan in mind before you get on the phone.

They sometime tries to abuse you verbally. What ever the person on phone says, you must stay calm. Just express your desire for settling your debt.

If you are getting nowhere with the person on the phone, ask to speak with a manager.

Be professional and and don’t express the reason why you want to settle.

Be polite and firm but never rude.

Try to get your interest payments reduced as much as possible, along with late fees, over-the-limit charges etc.

Stick to the terms of your agreement only. Remember, it is in their best interest to come to terms with you. They will always want to get paid rather than losing all. They also have a fear that you may file bankruptcy.

Just make sure you do this call followed by registered mails.