How to Negotiate Lower Interest Rates on Credit Cards in Australia (2025)

How to Negotiate Lower Interest Rates on Credit Cards in Australia (2025)

Credit card interest rates in Australia are among the highest in the world — often over 18%. But here’s the good news: you can negotiate them.

Yes, You Can Negotiate

Most Australians don’t realise that banks will often lower your rate — if you ask. Especially if you have a solid payment history and good credit score.

Steps to Negotiate Your Interest Rate

  1. Call your provider: Ask for the "retention team" or "hardship team."
  2. State your case: Mention your history, loyalty, and current offers from competitors.
  3. Be specific: Say something like, “Can you reduce my interest rate from 19% to 12%?”
  4. Be polite but firm: Confidence matters.

When You Have Leverage

  • You’ve been a customer for 1+ years
  • You always pay on time
  • Your credit score is above 650
  • You’ve received better offers from other banks

Alternative Options

  • Balance transfer cards: 0% offers for 12–20 months
  • Personal loan: May offer better rates if you consolidate
  • Financial hardship assistance: If you're really struggling

Final Tip: Put the savings into paying off your debt faster — don’t spend it!

Disclaimer: Information provided is general only. Speak to a financial advisor for personalised support.

Australian woman negotiating credit card rates by phone

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