With the entry of Standard Chartered's 'Manhattan' card, competition has intensified in the credit card industry.

Although Manhattan will not be allotted to one and all (one of the conditions is that the applicant must have an annual income of over Rs 200,000), it would be naive for the competition to simply ignore some of the card's features, such as no joining fees, no annual fees for life and interest rates as low as 1.99 per cent.

Competition always benefits the consumer. The credit card sector is no different. No wonder, then, that there is a spate of offers in the market. A friend was pleasantly surprised when his credit card company called him recently and offered to clear his credit card outstanding in exchange for a loan, which had to be repaid in 12 months.

The repayment was based on an interest rate of 1.3 per cent per month, much lower than the princely 2.95 per cent he used to pay on his credit card. The savings were huge. But he was one of the more fortunate users of credit cards.

It's not very often that credit card companies offer to lessen your burden. Most times, you are expected to call them and request for lower interest rates and lower fees. The principle the credit card industry lives by is "Ask and ye shall receive".

I recently discovered this when I tried to get my annual fees lowered. After a long silence, broken only by the staccatto tapping of the keyboard, I was told that my entire fee was being waived -- a saving of Rs 750. Pray, why the magnanimity? "Sir, you're part of the eligible list," I was told.

But what if I hadn't asked? I would have continued to pay.

Similar is the case with late fees or any fees credit card companies may slap you with. If you've not been late every other time in making card payments, it's highly likely that the late fee too would be waived.

Obviously, it would be much better to make the payment well before the due date, since you're not making a great return if the funds lie in a savings account for a couple of more weeks. If the problem were a shortage of funds, it would make sense to at least make a minimum payment before the due date.

But in the freak case that the payment goes in late, make sure that you call the credit card company and get the late fee waived. Including the service tax of 10 per cent, that could result in a saving if as much as Rs 275. If you really want to push your luck, you could even try and get the finance charges relating to that billing cycle waived.

In summary, from now on, this is what you aim for: lower interest rates, no late fees and no/lower annual fees. So what are you waiting for? Pick up that phone and call your credit card company. Here is a recommended negotiation dialogue:

You: I just heard of this card that has an interest rate of 1.99 per cent and no annual fees for the rest of my life. Your service has been great, so I don't want to switch cards. But I've noticed that your interest rate is higher and you charge me an annual fee. You decide!

Them: Give us a moment, Sir! (Sound of computer keys being tapped in the background)

You: Don't you think this new card will give my image a boost?

Them: All right, Sir. We're willing to waive your fees and lower your interest rate, if you choose to stay with us.

Something's got to give. If doesn't, dump your avaricious card company. There are a lot of others who will give you reasonable deals.

Dial for discount

• Want lower interest rates, no late fees and no/lower annual fees? Then what are you waiting for? Pick up that phone and call your credit card company.
• Haggle hard to get annual fees lowered. If the card company doesn't agree, there are others waiting with no annual fees for life even.
• If you have a good credit history and due to exceptional circumstances you could not pay on time, make sure to call up the credit card company. They are quite reasonable and waive off not only the late fee, but also the service tax. The gains could be as much as Rs 275.
• Credit card firms these days offer to clear outstandings in exchange for a loan, which has to be repaid in 12 months. The repayment is based on an interest rate of 1.3 per cent per month, much lower than the princely 2.95 per cent on card dues. The savings are huge.

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