Winning Financially in 2025: Getting a Deal with Your Credit Card

Speaker 1 I live in LA now, but lately I have been craving the seasons. Snow, hot cocoa, the whole thing.

Speaker 1 I don't even ski, but I have been daydreaming about working remotely from somewhere really cozy on the East Coast, like a cute little ski town for a little bit.

Speaker 1 And whenever I know I'm going to be gone for a while, I always remind myself that my home can actually be working for me while I'm away because I host my space on Airbnb.

Speaker 1 It is one of the easiest ways to earn passive income from something you already have, and that extra income feels particularly helpful this time of year as we approach the holidays. holidays.

Speaker 1 A lot of my friends say that sounds amazing, but where do you find the time to manage guests and bookings? And that's when I tell them about Airbnb's co-host network.

Speaker 1 Through Airbnb, you can find a local co-host who can help you set up your listing, handle reservations, communicate with guests, provide on-site support, even help with design and styling.

Speaker 1 I like to give a personal touch when I'm hosting on Airbnb. So I make a list of my favorite restaurants in the area and I hand write a note welcoming my guests to the property.

Speaker 1 My guests love it, but I also know that some of those little personal touches can take a lot of extra time. So this is the exact kind of thing that you would want your co-host to help you with.

Speaker 1 Whether you're traveling for work or chasing the snow or escaping it, or you've got a second place that just sits there empty more often than you'd like, your home doesn't have to just sit there.

Speaker 1 You can make extra money from it without taking on extra work. Find a co-host at airbnb.com slash host.

Speaker 2 Here's one piece of advice that I've given for years. Build an emergency fund.
Aim to stash away enough to cover at least three months of expenses in case your income suddenly drops.

Speaker 2 Sounds simple, right? But let's be honest, it's not. Saving even one month's worth of living costs can feel impossible.

Speaker 2 Just when you're making progress, that check engine light blinks on and derails your plans. Life already throws enough curveballs.
You don't need your bank adding to the chaos.

Speaker 2 That's why it's so important to choose one that makes savings easy and doesn't nibble away at your hard-earned money with ridiculous fees. QIIME understands that every every dollar counts.

Speaker 2 That's why when you set up direct deposit through QIIME, you get access to fee-free features like free overdraft coverage, getting paid up to two days early with direct deposit, and more.

Speaker 2 With qualifying direct deposits, you're eligible for free overdraft up to $200 on debit card purchases and cash withdrawals. To date, QIIME has spotted members over $30 billion.

Speaker 2 Work on your financial goals through QIIME today. Open an account in just two minutes at chime.com/slash MNN.
That's chime.com slash MNN. Chime feels like progress.

Speaker 3 Chime is a financial technology company, not a bank. Banking services and debit card provided by the Bank Bank NA or Stripe Bank NA.

Speaker 3 Members, FDIC, slot me eligibility requirements and overdraft limits apply. Timing depends on submission of payment file.

Speaker 3 Fees apply at out-of-network ATMs, bank ranking, and number of ATMs, according to US News and World Report 2023. Chime, checking account required.

Speaker 2 Here's one piece of advice that I've given for years: build an emergency fund. Aim to stash away enough to cover at least three months of expenses in case your income suddenly drops.

Speaker 2 Sounds simple, right? But let's be honest, it's not. Saving even one month's worth of living costs can feel impossible.

Speaker 2 Just when you're making progress, that check engine light blinks on and derails your plans. Life already throws enough curveballs.
You don't need your bank adding to the chaos.

Speaker 2 That's why it's so important to choose one that makes savings easy and doesn't nibble away at your hard-earned money with ridiculous fees. QIIME understands that every dollar counts.

Speaker 2 That's why when you set up direct deposit through QIIME, you get access to fee-free features like free overdraft coverage, getting paid up to two days early with direct deposit, and more.

Speaker 2 With qualifying direct deposits, you're eligible for free overdraft up to $200 on debit card purchases and cash withdrawals. To date, QIIME has spotted members over $30 billion.

Speaker 2 Work on your financial goals through QIIME today. Open an account in just two minutes at chime.com/slash MNN.
That's chime.com slash MNN. Chime feels like progress.

Speaker 3 Chime is a financial technology company, not a bank. Banking services and debit card provided by the Bankor Bank NA or Stripe Bank NA.
Members, FDIC.

Speaker 3 Spot me eligibility requirements and overdraft limits apply. Timing depends on submission of payment file.

Speaker 3 Fees apply at out-of-network ATMs, bank ranking, and number of ATMs, according to US News and World Report 2023. Chime, checking account required.

Speaker 4 I'm Nicole Lapin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.

Speaker 5 Hey, it's Morgan, the executive producer of the show. And as you know, this week we are re-releasing episodes of Money Rehab that will make the biggest impact for your financial resolutions for 2025.

Speaker 5 Today's is a sneaky one. It is the three things that you absolutely should be negotiating with your credit card.
And you might be thinking, is this just about credit card debt? The answer is no.

Speaker 5 These tips will help you regardless of whether or not you're in credit card debt.

Speaker 5 Even if you have a perfect credit score, even if you love your credit card, these are three things that you absolutely should be negotiating. So listen up and start today.

Speaker 4 Last week, I was on Good Morning America. I mean, actually, it could have been the week before.
What is time anyway?

Speaker 4 Anyway, recently I was on Good Morning America and I had a lovely chat with the hosts there, DeMarco and Eva. I told them about the things we all need to be negotiating with our credit card companies.

Speaker 4 And there are three biggies: the annual fee, the APR, and late fees. I told them this, and I'll tell you this too.

Speaker 4 If you're not negotiating these three things, you're leaving money on the table, period, the end. But you don't need to go at it alone.

Speaker 4 I'm going to give you the script for these three conversations with your credit card company. Number one, annual fee.
This is my new favorite thing to negotiate.

Speaker 4 I did it and I recorded the whole conversation for money rehab. I've linked that episode if you haven't heard it yet in the show notes.

Speaker 4 And I have to tell you that in the hundred thousand years I've been covering money news, I have never personally called and done this myself. So recently I did it and spoiler alert, it worked.

Speaker 4 Oftentimes we sign up for cards when there are special offers on the annual fee. And then the next year when it hits your statement, you're like, what the heck? It feels like a shock.

Speaker 4 So here's what I want you to do. Call and ask for a retention credit.
That is the magical word. Think about it this way.
Put yourself in the credit card company's shoes.

Speaker 4 They spend upwards of $700 to acquire a new customer. So they're most likely going to throw you a bone versus losing you as a customer.
Because it was expensive to get you in the first place.

Speaker 4 Here's the cheat code. Say, I'm considering closing my card or I'm not sure if I can pay the annual fee on my card.

Speaker 4 Each credit card company has a different process, but ask for the retention department because there might be a specific department dedicated to making sure customers don't leave.

Speaker 4 Once you get to that department, say, hi, I've noticed that the annual fee on my card just posted and I'm not really sure I can justify paying it another year.

Speaker 4 I really do like XYZ benefits, but I'm not sure about this annual fee. I was wondering if you could check if there are any retention offers available on my account that might help me make up my mind.

Speaker 4 Usually they'll have some offer. They could be in the form of an annual fee waiver or reduction, a statement credit, or miles.

Speaker 4 If they're making you choose between miles or statement credit, quickly go to the site and check out the miles to cash calculator and see which offer, the miles or the cash, will be more valuable to you.

Speaker 4 Oftentimes the cash equivalent of the miles will be higher than the statement credit they offer. This is what happened to me, but always good to check.
Number two, APR.

Speaker 4 Remember the APR or interest rate on your credit card is linked to your credit score. So it's like a seesaw.

Speaker 4 The higher your score, the lower your rate because you're seen as more responsible to the card company and more likely to pay back the debt. But that rate is not set in stone.

Speaker 4 So here's the cheat code for the APR. If you've done some credit hygiene lately and you've improved your credit score since you got the card, lead with that.
Hopefully you've also paid on time.

Speaker 4 So talk yourself up as a great, loyal customer and be a dog on a bone with this. Ask for a manager or get as high up in the company as you possibly can.
This is, by the way, not a virtual chat thing.

Speaker 4 Sorry, millennials who don't want to talk to humans. This is an actual phone call.

Speaker 4 If you get denied and you're worried about paying down your current balance, you can always ask for a temporary rate reduction, which will at least give you some reprieve. Number three, late fees.

Speaker 4 The average customer late fee is 26 bucks and accounts for 99% of penalty fees and more than half of all customer fees. So if you get slapped with one, fight it.

Speaker 4 Especially if you're not a chronic late payer, you'll have the best chance of success if you call right away after you see the fee hit.

Speaker 4 You'll also have the best chance of success if you actually pay whatever is late before you call. So here's the cheat code for late fees.

Speaker 4 I would just honestly apologize for being late and give a brief explanation about why that happened and why it won't happen again.

Speaker 4 Also be armed with other competitive offers for other card companies you could potentially move to if you don't get what you want.

Speaker 4 I love threatening to leave or cancel my card, but use that as a bargaining chip and be really, really careful before actually doing it because closing an account will impact your credit score.

Speaker 4 For today's tip, you can take straight to the bank. You'll have more leverage for negotiating if your credit score is on point.

Speaker 4 If your credit score isn't where you want it to be, this sucks to hear, I know, but the good news is that you can improve your score by practicing some good credit hygiene.

Speaker 4 One thing I would do today is make sure your credit card balance is no more than about 30% of your overall limit.

Speaker 4 So if the limit on your card is three grand, try not to spend more than a thousand bucks.

Speaker 4 A big factor in determining your credit score is the ratio between what you're borrowing and what you have access to with credit.

Speaker 4 If your bank thinks you owe more than you can pay back, your score will fill the backlash.

Speaker 2 Hey, money rehabbers, aren't you crushing it with your savings goals? Of course you are. But did you know that you can make your money work as hard as you do do with U.S.

Speaker 2 Bank Smartly checking and savings?

Speaker 2 From tracking your spending to growing your savings, Bank Smartly can help you reach your goals faster with higher savings rates and waived monthly fees on eligible accounts.

Speaker 2 Because when your bank believes in your potential as much as you do, that's when real progress happens. That's the power of us.
Visit usbank.com today.

Speaker 2 Interest rates and annual percentage yields for variable accounts are determined by the bank's discretion and can change at any time. Deposit products are offered by U.S.

Speaker 2 Bank National Association, member member FDIC.

Speaker 4 Money Rehab is a production of Money News Network. I'm your host, Nicole Lapin.
Money Rehab's executive producer is Morgan Lavoie. Our researcher is Emily Holmes.
Do you need some money rehab?

Speaker 4 And let's be honest, we all do.

Speaker 4 So email us your money questions, moneyrehab at moneynewsnetwork.com, to potentially have your questions answered on the show or even have a one-on-one intervention with me.

Speaker 4 And follow us on Instagram at MoneyNews and TikTok at Money News Network for exclusive video content. And lastly, thank you.
No, seriously, thank you.

Speaker 4 Thank you for listening and for investing in yourself, which is the most important investment you can make.