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A proactive attitude is important in many cases, especially when we deal with a financial entity. Some experts point out the advantages of having a proactive attitude with the entity in which the user has contracted an account, a card or a mortgage, among other products. Even if he has an agreement with one of the direct lenders loans.
They have no doubts: many times the relationship that a client has with his bank is characterized by great passivity, typical of dependency ties. To buy the house in which he lives, the user has had to apply for a mortgage that represents a huge and long-lasting debt. Through the card, you buy on credit, while trusting to be able to return the money that the bank lends you at the end of the month without having to pay very high interest. In order to acquire something of value or a service that he could not pay for from his savings, he has taken out a personal loan. All this often pushes him to accept the conditions proposed by the banks without further ado, although – at least, in theory – he could continue negotiating them with the entity for the duration of the contract for the product in question. Who does not risk does not win, so daring is worth it.
Start with the payroll account
The payroll account is the quintessential product to renegotiate. It reflects the customer’s income and is the axis around which other financing, savings or investment products pivot. The important thing is to start on the right foot and obtain, from the beginning, all the advantages you are looking for: zero commissions, free transfers, or free debit cards, among others.
From there, trying improvements is important, for example asking the entity to assume part or all of the commissions that other banks apply for withdrawing money at their ATMs, instead of passing them on. Or to be able to enter checks without costs. Obviously, being a good customer helps. We will be stronger if our income is high and, also, if we have a large position in assets such as deposits, investment funds or pension plans, among others.
The card: complicated, but not impossible
Lowering the interest charged in a contract as standard as that of the card is complicated, but, before the contract expires or is extended, it is more likely to be able to renegotiate the annual fee that many banks charge.
What is the trick, in this case? The existence in the market of free cards in terms of issuance, renewal, and use to withdraw money from ATMs or pay, which some financial credit establishments offer without the user having to change banks. They are plastics from entities that only exist and operate over the internet.
It is always a good idea to compare your existing mortgage with other similar products, with the goal of obtaining a long-term discount. However, the process is usually complex and, many times, ends in the request for subrogation of the loan to another bank.
For this reason, even if it is a contract in which the bank has acted only as a mediator (for example, in the case of insurance linked to a mortgage), it is normal for it to be able to alter its content. Among other elements, one could try to improve or increase coverage or lower the premium.
What if the user cannot pay?
Extinguishing a large debt such as a mortgage from “official UK banks” like Atom Bank can prove difficult, especially if the borrower is experiencing family problems, a marital crisis, and a reduction in wages or a layoff, which leads to serious financial difficulties. The bank should be interested in looking for alternatives to the foreseeable default, either by extending the term of the operation, granting a lack of capital or interest, incorporating guarantors or unifying debts, among others.
It is the reason why this expert indicates that the client who finds himself in one of these circumstances not only can, but must “take the step of contacting his branch to report the situation and seek solutions.”
It is at the time of contracting when we must look for the lowest interests and the cheapest exit commissions or equal to zero for total cancellation or partial amortization, since the shorter term of this type of loan makes their conditions are immovable. If the client has had the capacity to save, he could have an interest in a partial installment to amortize part of the capital.
Improving the conditions of investment funds or pension plans – essentially, lower commissions – in the search for higher profitability is something that “impossible.” As indicated above, however, these are as many “strength elements to negotiate the account and loans.”
