How to negotiate a better credit card deal with your bank for the New Year

Information verified correct on October 28th, 2016
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Learn how easy it is to persuade your existing credit card provider to give you a better deal. Know the things to say, what you can ask for, and the most productive way to carry out your negotiations.

You can get a better New Year credit card deal with your existing provider is with some gentle and subtle negotiation.

Although the most usual way to achieve a better interest rate is to take out a new credit card with a different provider and make a balance transfer to that card, this may not be necessary. For whatever reason, you may want to remain with your current credit card provider, but you just may prefer to have a lower rate of interest on the card, or a more attractive annual fee. This may be because you have an outstanding balance from your Christmas spending, or in case this happens in the next few months.

St.George Vertigo Visa

Get a brand new low interest rate credit card today

The St.George Vertigo Visa features one of the lowest purchase rates in Australia, and a balance transfer option that will give you relief from your credit card interest repayments.

  • $55 p.a. annual fee
  • 1% p.a. for 12 months (reverts to 13.24% p.a.) on purchases
  • 0% p.a. for 18 months on balance transfers
  • Cash Advance Rate of 21.49% p.a.
  • Up to 55 days interest free

What you should do:

Pick the phone and speak to an adviser at your credit card company. Tell them you would like to talk to someone about the current interest rate or annual fee on your card. You may already be talking to someone who can help, or you will be passed onto the right person. This is not a great issue for a credit card provider, and there are advisers who are fully authorised to independently alter the terms of your card.

What you can ask for:

Remember that credit card companies want your business. In fact, they are positively scrapping over it in these tough financial times, and it is not set to get much better for them as they fight for what is left of the market before it becomes saturated, as it has in other countries. Bearing this in mind, you should be aware that you are in a relative position of strength. The two main areas to negotiate are the rate of interest and the annual fee. You will know which is most important to you. If you always clear your bill each month then the interest rate doesn’t matter and you should ask for a lower fee. The adviser will have pulled up your file so will know whether you have a balance you may be thinking of transferring to a different card.

What you should say:

Your approach should be to mention the very attractive rates you have seen being offered by rival credit card providers and compare them to your current rates. This may be all that is necessary. Advisers will not be surprised by this approach and can read between the lines, therefore may well straight away offer you a lower rate of interest or lower annual fee. Don’t take their first offer. It’s a game of haggling, and they will not start at their most competitive offer. You could say again how tempted you are by competitors’ offers. You will know when the adviser has reached their limit because they may reluctantly suggest that you do indeed go elsewhere. At this point you either accept their new terms, ask to speak to someone more senior, or move to another provider.

What to avoid:

As long as you stay calm and keep a sense of humour, you should be okay. What will not work is making angry demands of your credit card provider. Remember that although they want your business, they will not go under without it. Be realistic. If your current rate of interest is 15%, you will not have that reduced to 0% even if there are several competitors offering such balance transfer deals. Have a little fun in your negotiations; people respond so much better.

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Credit Cards Comparison

Rates last updated October 28th, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
11.99% p.a. $0 p.a. Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info
NAB Low Rate Credit Card
The NAB Low Rate Card offers 0% p.a. on purchases and balance transfers for 15 months. This card also comes with a low annual fee.
0% p.a. for 15 months (reverts to 13.99% p.a.) 0% p.a. for 15 months with a one off 3% balance transfer fee $59 p.a. Go to site More info

* The credit card offers compared on this page are chosen from a range of credit cards has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

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