To begin, call your credit card company and ask for one of the following: a) to have the credit card interest rate you're charged lowered, b) to have your credit card annual fee waived or c) both a and b.
The first thing you need to do is to find the number of your credit card company. It should be on your credit card or on your credit card statement. When you call, you want to say something like:
Hi. I have used your card for the last 3 years and have been happy with it. However, I recently received a competing credit card offer with no annual fee. Would it be possible to have my annual fee waived?
Hi. I have used your card for the last 3 years and have been happy with it. However, I recently received a competing credit card offer with a much lower interest rate (have a percentage rate in mind in case they ask). What is the best interest rate that you can give me?
If you are currently paying a annual fee and a high interest rate, feel free to ask about both in your call. One of two things will happen: 1) you'll get your annual fee waived or a lower interest rate or 2) you won't. While it will be great if you do, the result is not nearly as important as actually getting up the courage to make the call because when you learn to ask for discounts on a regular basis, even if they don't all work out, many will and you will save money.
Take the challenge. Get up from the computer and go to the phone right now. Even if you're a bit nervous, that's fine. Just commit to making the call and ask for a better deal.