How to advocate for yourself as a cardholder

If you don’t advocate for yourself, who will?

This is true in life, and it’s also true with your credit cards.

Like so much in life, credit cards come with terms and conditions. Using them means agreeing to certain rules and rights, both for the cardholder and the issuer. To be your own advocate, you need to be aware of them — and exercise them. When you don’t know what you’re entitled to, you might not realize if a credit card company is doing something it shouldn’t. And you might miss out on certain opportunities. 

The good news is that exercising these rights can be as simple as dialing the number on the back of your card. Here are some essential ways you can advocate for yourself as a cardholder and how to take advantage of the terms and conditions that come with your cards.

Ask for a credit limit increase

A higher credit line doesn’t only expand your purchasing power. It also makes it easier to keep your credit in good shape. This is because credit utilization — or how much of your available credit you’re using — is the second most important credit score factor after payment history. A credit utilization ratio of over 30% can have a negative impact on your credit, but keeping the ratio low is likely to boost your scores.

Typically, credit card issuers review your information from time to time to determine whether to bump your credit limit. From time to time, you might also get a request from them asking you to update your household income on your account. If it has increased, your issuer might increase your limit too.

However, you don’t have to wait for it to happen. If you’re consistently a responsible cardholder, pay your credit card bills on time and keep your credit utilization low, you’re in a good position to ask for a credit limit increase. Some issuers allow you to make a request online, while in other cases you might have to call. I’d recommend calling either way to have a better chance to make your case.

To determine whether you’ll qualify, the issuer will probably pull your credit. This will result in a hard inquiry on your credit report which can temporarily ding your credit score — but the effect is often minimal. Still, it allows other issuers to see you’ve requested more credit. For that reason, try not to “spam” multiple issuers with requests at the same time. It might look to them like you’re desperately trying to secure access to money in a dire financial situation. Limit your requests to once per six months at most.

Request a retention offer

Sometimes, a credit card simply stops bringing enough value to keep it in your wallet. Canceling a card isn’t an ideal solution since it’s likely to affect your available credit — and your credit utilization ratio. You can connect with your issuer and see if it’s possible to switch to a card that’d work better for you without closing your existing account. If that’s not the case, you might also inquire about a retention offer.

A retention offer is a one-time incentive a card issuer provides to keep you as a cardholder. It comes in many forms, from a waived annual fee to statement credits or bonus rewards. Some issuers rarely give these out, while others are much more generous. But just like requesting a credit limit increase, sometimes it’s just as simple as asking.

Bankrate staff insights

A personal anecdote

“Over a year before I finally canceled my American Express® Gold Card, I asked about retention offers. I called customer service a few weeks before my annual fee would be posted and said I was considering canceling the card. With my spending, I didn’t earn enough points to justify the annual fee. The representative looked at my card history and gave me a marketing spiel, noting my usage of the card’s dining credits. I persisted — at that point, I was using the credits simply to offset the fee. There was no good option for me to downgrade to, so I asked if there were any retention offers available. After a hold, I did get one. It was a bonus points offer with a modest spending requirement, which I gladly accepted.”

Ana Staples, Principal Writer

Know your rights as a cardholder 

To exercise your rights as a cardholder, you have to know them first. Here are some important examples of what you’re entitled to:

• Clear and accurate information you can locate easily. Under the Truth in Lending Act (TILA), credit card issuers must disclose the APR, fees and terms before you open an account. Then, they must also disclose the terms on every statement using a standardized language.
• Billing error disputes. You have 60 days to dispute any billing errors in writing, thanks to the Fair Credit Billing Act (FCBA). During that time, the issuer can’t collect the debt or report it as delinquent to the credit bureaus. Additionally, under the TILA, your liability for unauthorized use of your credit card is capped at $50.
• Timely communication about rate and fee changes. Under the Credit CARD act, your credit card issuer must give you at least 45 days’ advance notice in writing before increasing rates or fees. Your APR also can’t increase in the first year.
• Fair treatment. The Equal Credit Opportunity Act (ECOA) states that a credit card issuer can’t discriminate against you in credit decisions based on race, color, religion, national origin, sex, marital status, age, or your receipt of public assistance. Plus, if you’re denied credit, the issuer must explain why.

Verify information 

In a perfect world, customer service always provides accurate information and can assist you with your questions. Sadly, the world is not perfect. Sometimes, an agent can be entirely unhelpful — which is one of the most common frustrations cardholders experience.

A few months ago, I applied for a cash back card to transfer its rewards to a travel card from the same issuer. When I earned the introductory bonus, I attempted to do just that but couldn’t find the option in the bank’s app. Naturally, I called customer service. The representative told me the transfer wasn’t possible. As a credit card journalist, I’d researched the topic before, so I knew the agent was mistaken. After getting off the phone, I made my way to Reddit and soon found a step-by-step instruction for moving my rewards, complete with pictures. As it turned out, all I needed was to log in from a computer instead of the mobile app. The process took a couple minutes.

Sometimes, the only way you can navigate such situations is by knowing your cards — and rights — intimately. This might not be your idea of fun, but reading terms and conditions is crucial to advocating for yourself as a cardholder. I’d also recommend browsing online articles about your cards. Know more about your cards than any agent. This way, you’ll know a falsehood when you hear it.

Got a credit card question? Drop me a line at anastaples@bankrate.com.

Communicate any and all issues

It’s a good practice to maintain a close and transparent relationship with your credit card issuer. This includes letting your bank know when problems arise.

If you’re facing financial difficulties and worry you might not be able to make your credit card payments, get in touch with your bank and ask about its credit card hardship program. The solutions such programs offer may vary by bank and specific situation. Some examples include extended due dates, reduced interest rate charges and minimum payments, waived late fees and more. These measures are temporary as hardship programs typically expire after three to 12 months. Still, they can be incredibly helpful if you’re navigating (hopefully short-term) financial trouble.

If the issuer is in the wrong, the same rule applies: Make sure to communicate. Whether a glitch robbed you of rewards or you’ve been waiting for your intro bonus for too long, call your bank. It might take multiple calls and conversations with multiple people, but persistence is key. You know your rights — exercise them.

The bottom line

Your relationship with an issuer is a two-way street. You’re giving a bank your business, and it can support you in more ways than you realize. Whether your credit card isn’t a good match for you anymore or you’re in a difficult financial situation, give your issuer a call. And if your issuer is in the wrong, don’t hesitate to give it as many calls as needed to resolve the issue. Just remember: it helps to know the terms and conditions before you do.