Your Credit Card provider offers a plethora of rewards and benefits on your card. From cashback to rewards on flight and hotel bookings, fuel surcharge waivers, airport lounge access, and free movie tickets – you can get it all. While some credit cards are offered free of charge, others may incur an annual fee ranging from a few to several thousand rupees, depending on the card type. However, you can get your annual fees waived on almost all credit cards. Find out how, in this article:
8 Practical Ways to Get Your Annual Credit Card Annual Fee Waived Every Year
Listed below are eight incredibly smart tactics to get a waiver on your annual credit card fees:
- Meet/Cross the Annual Spending Requirement
- Opt for Lifetime Free Credit Cards
- Check for Co-branded Credit Card Offers
- Negotiate with Customer Care
- Maintain a High TRV
- Leverage Reward Points
- Request Retention Benefits
- Track Promotional Offers
The most direct way to get your annual fee waived is to meet or cross the minimum annual spending limit set against your card. While lower category cards have smaller spending limits, premium cards typically have higher limits. However, if you plan your purchases prudently and use your card to pay for every big and small expense, you can meet the spending limit and get your fee waived.
When you apply for a credit card, you can check if your creditor offers lifetime free variants. This is one of the smartest hacks to avoid annual fees altogether. Creditors typically offer these cards as promotional deals to existing customers or to attract new customers. Once you’re approved for this card, you don’t have to ever worry about annual fees, making them cost-effective in the long term.
A smart way to enjoy annual fee waivers is to opt for co-branded credit cards. In India, you can find all kinds of co-branded cards – retail, fuel, airline, etc. These cards come with a basic clause that requires you to use the card for specific expenses. So, if you have an airline-branded card, you must book tickets on that airline at least once or twice a year to enjoy waivers on the annual fee.
If your card comes with an annual spending threshold, and you are unable to meet it, you can still get the fee waived. You simply need to call your credit card provider’s customer care helpline and politely request a waiver. If you’ve been a long-standing loyal customer, and using your card consistently, your creditor may approve your request to retain you, and offer the annual fee waiver.
Banks reward their loyal customers, especially those who hold multiple products – bank accounts, investments, credit cards, etc., with the same bank. This is known as Total Relationship Value (TRV). A high TRV makes you a valuable customer in the bank’s eyes. Since they value overall relationship profitability over a small fee, the bank may be persuaded to waive off your annual credit card fees.
You typically earn reward points every time you use your credit card. These reward points can be converted into a cash amount. You can call your bank and get permission to pay your annual credit card fee by converting the accumulated reward points into cash. By redeeming your card points strategically, you can offset the annual fee and translate your reward points into actual savings.
As a high-earning/high-spending credit card user, you may frequently get offers from competing banks to apply for credit cards. The competitor may provide better credit limits and rewards. If your current creditor charges an annual fee, you can leverage offers from other creditors and ask for a waiver to retain your business. While this technique is shrewd, it proves effective in getting waivers.
While the annual credit card fee applies on most cards, banks occasionally launch promotional campaigns, through which they announce annual fee waivers on existing credit cards. These waivers are typically announced during special events (anniversaries, milestones, etc.) and festive seasons. You can follow your bank’s social media accounts to track promotions and claim your fee waiver.
Rewards Equalling Annual Fees:
Many creditors also offer rewards and benefits, matching the annual fee amount. For instance, if the annual fee is ₹15,000, you may be provided benefits equal to the annual fee, such as shopping vouchers of the same value, hotel stays at select properties, etc. These rewards are typically offered after the first quarter of a new credit year.
Final Note: As is apparent, it is extremely easy to get waivers on your annual credit card fees. If your annual banking relationship is high, most creditors will not hesitate to waive the fees. When you apply for a credit card, remember to check the annual fee, so there are no surprises when your creditor charges you.