PR Skills Applied to Your Credit Card

A tenet of effective public relations is developing mutually beneficial long-term relationships. In addition to having the ability to network and connect, there are two elements critical to securing results in the PR process: 1) create consistent, compelling positioning and messaging; and 2) promote the message continually and clearly with proof points.

Interestingly, the above advice can be used to save you money. How? By taking a measured approach to negotiating your credit card rates and loans. Read the two below scenarios and choose your plan accordingly:

Scenario 1:
Call your credit card company and demand a lower rate. Provide no justification other than "my debt is out of control" and "I'll never be able to pay this off". Get frustrated and start whimpering when the phone call is looking like a dead end. Before slamming down the phone, lament about "evil credit card companies". Get nowhere. Or perhaps get a minor reduction.

Scenario 2:
Approach attaining a lower credit card rate like pitching a great story. First you'll engage in preliminary research to determine the best rates the company is offering and gather data about your account. Then, you develop talking points for your call including the following: 1) an introductory statement; 2) brief account history with number of years as a client; 3) proof points for your being a good customer like number of bills paid on time, automatic payments you've set up and increase in your credit score; 4) casual mention of competing offers received; 5) ask for a specific reduced rate or "the company's best offer for great customers"; and 6) plan if you're request isn't granted.

Make sure to call when you are at least somewhat relaxed and after having taken a few deep breaths. As soon as she answers, repeat the customer service representative's name and immediately thank "Sally" for her time. (You're getting her on your side and creating a connection.) Go through your talking points in a calm, firm tone. Ask "Sally" if she has any questions. Then reiterate that you "want to remain a good customer" and are "interested in securing the best possible rate" given your relationship.

Synopsis:
Sally is much more likely to come back to you with an offer in Scenario two than number one. When she does, thank her again.

If she doesn't, or gives you a rate that is higher than you expected, ask her what you can do to improve your standing and when would be a good time to call back. Have her document the call and do so yourself. Follow up.

***Notice that part of approaching the rate pitch like a PR pro involves coming to the table with proof points -- your history, payments made on time, credit score enhancement, etc. If your "proof points" aren't there, work on those diligently for six months before you start the negotiation process.***