Credit card companies (and the banks issuing the cards) are in business. You’re a customer. They want you to be their customer. Now what are they going to do about it?

Consumers sometimes forget that they do have a say in their credit card terms. They can accept, reject, or negotiate any offer. If they’re unhappy later, they can even jump ship. No matter what shape the economy is in on any given day, credit card companies are always competing with each other for your business. You can use that fact to your advantage by pitting the banks and their offers against each other to get the best deal possible. But how?

Know your options.

You can’t play one credit card offer off of another one if you don’t know what offers are available to you. Look for similar credit cards that would meet your needs. For example, if you’re looking for a low interest rate on ongoing purchases, you might consider the ANZ Low Rate MasterCard (with an 11.74% interest rate and $58 annual fee) versus the Citibank Clear Platinum credit card (with a 10.99% APR and an $85 annual fee).

Pit your existing lender against a new credit card company.

Don’t immediately apply for a better-looking offer with a new company. That will add an enquiry to your credit file showing the credit application (and it stays on your file for five years). Instead, call your existing bank and ask to speak to an account supervisor. In this case let’s say you had the 11.74% / $58 annual fee card.

You might tell them that you’re considering applying for the Citibank card (specifically mentioning that you’re attracted by the lower interest rate and are even willing to pay their higher fee because you’ll save on your existing interest if you move your current balance to that new card as a balance transfer (at 0% interest for six months).

Ideally what you’d like them to do is offer you a competitive interest rate (perhaps 9.99% – 10.99% APR) without also increasing your annual fee. If you’ve been a good customer for a significant period of time, you’ll have a better chance of getting your current lender to make some attractive changes to your account.

Offer more of your business.

If you carry a balance on two different credit cards, but have a solid history of paying off your debt quickly, you may be able to cut down your total number of credit cards while getting a better deal in the process by offering to transfer each balance to the other card.

Contact both credit card companies and ask them what they can offer you if you transfer your other balance to them. Many lenders offer 0% interest on balance transfers for an introductory period of around six months. See what else they’ll offer you. Will they cut your overall interest? Will they exempt you from your annual fee for this year? You never know unless you ask.

Don’t forget to mention to each that you’re asking both competitors what they can offer you. Once they realise they’re in direct competition, they may feel more inclined to sweeten the deal.