Credit card hacks

6 Tricks That Will Get You Out of Credit Card Annual Fees

Credit card companies will never tell you that you can request to waive the annual fees that come with your credit cards. Yes, you can be free from the yearly fees of credit card use. If you have been painstakingly paying off an average of ₱2,500 each year depending on the type of card, then, it is time to ask your bank to get rid of it. Just make sure you fulfill a few things before negotiating for waived annual fees.

Ask for it

Unless you inform the bank that you want the annual fee waived, they would have the impression that it is alright for you to pay. Card issuers are in a sea of competition that most of them are willing to get rid of the annual fee to retain their customers. Call the provider and tell them how much you want to keep the card, but the fee is just too much to bear. They can choose to waive or offer some additional benefits to offset the charges.

Look for cards that waive the annual fee for the first year

Applying for a new card can be rewarding. New applicants will always enjoy the benefit of not paying the annual fee during the first year. It is one way for issuers to attract fresh applications. Enjoy the first year then check with your issuer what needs to be done for the annual charges to be waived again in the succeeding years. Citibank credit cards, for instance, give out welcome gifts worth ₱5,000 to those who complied with the promo’s terms and conditions. However, be careful with opening too many credit card accounts as this might hurt your credit score.

Use your rewards

Granting that you have been using the card for quite some time and your issuer could not waive the annual charges, you can use your rewards points to pay for it. You can also use the generated points to pay the annual fee of another credit card from the same issuer.

Pay your balances on time

Credit card companies will willingly waive the annual fee if you have a good credit history. By paying off your balances on time and making sure that you do not exceed your credit limit, you are working your way to a credit card that is free for life.

Opt for cancellation

Letting your issuer know that you are planning to cancel your card because of the annual fee will force them decide whether to keep it or you. Then again, some banks don’t have the luxury to give in to your request but will always have bonuses to offer including added miles’ points or rewards.

Check for a downgrade

Classic cards may not have annual fees compared to platinum ones which are packed with perks. You might need to check whether downgrading is still worth it if perks and rewards will not be the same anymore.

Fees and charges always go with credit card bonuses. When comparing cards with GoBear, don’t just check out the rewards, but see if the rates charged against your usage are worth every swipe.