Credit cards often have one expense one cannot escape: the annual fee. Cardholders may feel that paying for the privilege of a card is a repeated burden, succeeding or quickly accumulating balances and spending on cards, and for frugal consumers. Fortunately, there is a way to get this annual fee waived if one takes the appropriate steps.
What is a credit card annual fee?
The annual fee is a set charge associated with using a bank’s credit card services over a year. It depends on the card type (basic or premium), and can range from ₹500 to ₹10,000 or more. Many, but not all cards have annual fees that can be waived by meeting certain criteria, while others may claim to be lifetime free.
Ways to waive off credit card annual fee
1. Spend-based waiver programs
Businesses mainly eliminate the annual fee for users who exceed a specific annual spend. As with any credit card, once again, it is always prudent to check the terms before applying. Best suited for regular users that spend without even thinking about it.
2. Utilise Intro Offers
Many credit cards give you a special limited time offer in which the annual fee on your credit card is waived for the first year. If you reach the required spend, some credit cards even waive the annual fee the following year.
3. Use your reward points to offset fees
Occasionally, banks will allow users to utilise their reward points as a credit against the annual fee. This is rarely done, but if you have enough credit for points and are not planning on using them as cash or merchandise.
4. Negotiate charges
If you are a long-time client and have a good payment history, don’t hesitate to call the customer service department and simply request a fee waiver. Banks like to keep their long-term loyal customers and if they believe they will often grant you a waiver as a courtesy.
5. Moving up or down in your card
If you feel an annual fee is too much on your current card, look into transferring to another card with the same bank. You may be able to move “up” to a card with more premium features for a reasonable fee, or “down” to a card with less premium features that has no annual fee.
6. Watch for hidden terms
Always read the fine print, some banks may just waive a portion of the fee, while they may be still charging GST on your bill. Some may not count certain types of purchases, to meet the spending requirement to waive the fee.
In conclusion, you can take advantage of all the perks of credit cards and not worry too much about unnecessary fees if you meet the spending requirements, or get a card that has no fee for life. The main point is to be knowledgeable and to be aware of clearly outlined spending requirements.
Disclaimer: Mint has a tie-up with fin-techs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
