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

I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.
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.
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. These tips will help you regardless of whether or not you're in credit card debt.
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.
Last week, I was on Good Morning America. I mean, actually, it could have been the week before.
What is time anyway? 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.
And there are three biggies, the annual fee, the APR, and late fees. I told them this, and I'll tell you this too.
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.
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. I did it and I recorded the whole conversation for Money Rehab.
I linked that episode if you haven't heard it yet in the show notes. And I have to tell you that in the 100,000 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. 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. 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.
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.
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.
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. 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.
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.
Usually they'll have some offer. They could be in the form of an annual fee waiver or reduction, a statement credit, or miles.
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. 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.
Remember the APR or interest rate on your credit card is linked to your credit score. So it's like a seesaw.
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.
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've got the card lead with that hopefully you've also paid on time 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 sorry millennials uh who don't want to talk to humans.
This is an actual phone call.

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.
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.
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. 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. I would just honestly apologize for being late and give a brief explanation about why that happened and why it won't happen again.
Also be armed with other competitive offers for other card companies you could potentially move to if you don't get what you want. 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.
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.
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. One thing I would do today is make sure your credit card balance is no more than about 30% of your overall limit.
So if the limit on your card is $3,000, try not to spend more than $1,000. A big factor in determining your credit score is the ratio between what you're borrowing and what you have access to with credit.
If your bank thinks you owe more than you can pay back, your score will fill the backlash. So I just went to the grocery store and I actually flinched at the cost of eggs and I don't even really eat eggs, that's how bad it is.
Everything feels more expensive. And so I'm hearing from a lot of money rehabbers right now that their credit cards are getting a lot of exercise right now.
But the last thing I want for any of you is to go into credit card debt. Enter Chime Credit Builder card.
This is a secured credit card with no annual fees. You can build credit with money you set aside and avoid interest or expensive debt.
Plus, you can get access to MyPay and get up to $500 of your pay before payday with no mandatory fees. Start building credit with your everyday purchases and regular on-time payments with no annual fees, interest, or credit check at chime.com slash MNN.
And then when you go to chime.com slash MNN, as in Money News Network, you'll start thinking about all the doors that will open once you start building your credit, like lower rates on loans. Who doesn't want that? Turn your everyday purchases into steps toward your financial goals with Chime's secure credit card.
Get started today at chime.com slash MNN. That's chime.com slash MNN.
Chime feels like progress. The Chime Credit Builder Visa credit card is issued by the Bancorp Bank NA or Stride Bank NA.
SpotMe eligibility requirements and overdraft limits apply. Out-of-network ATM withdrawal and OTC advance fees may apply.
Late payment may negatively impact your credit score. Results may vary.

MyPay eligibility requirements apply. Credit limits range from $200 to $500.
Go to chime.com slash disclosures for details. Listeners, we're always talking about smart ideas here.
And using NerdWallet to find the best financial products for you, like credit cards, is more than smart. It's genius.
Because the nerds already did all the research, so it's easy to find the right card for you in minutes. I'll prove it.
I want to upgrade my card, so let's use NerdWallet's card finder tool together. Okay, first question, what's my credit score? I think it's good.
I think it's in the 700s. Next question, what kind of rewards do I want? Probably travel.
I'd like to travel some more this year. Next question.
Am I planning to make a big purchase soon? I sure am. I'm getting married this year and there are a big number of big purchases.
So yeah, check that box. Next question.
How much money am I spending monthly? I'm just gonna put in a little something, something. And here they are, several really great recommendations and some travel.
Okay, honeymoon. Now it's your turn.
Get matched with your card today at nerdwallet.com. Terms and conditions apply.
Credit products subject to lender approval. See nerdwallet.com for details.
Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin.
Money Rehab's executive producer is Morgan Lavoie. Our researcher is Emily Holmes.
Do you need some money rehab? And let's be honest, we all do. 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.
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No, seriously, thank you. Thank you for listening and for