How To Waive Your Credit Card Annual Fee

Are you a credit card user? Perhaps you already know the benefits and the danger that comes with using a credit card so I'll make an assumption that you are a responsible credit card user and teach you about how to waive your credit card annual fee.

First things first, what is a credit card annual fee? Well, to describe it simply your annual fee is your membership fee. Why should you waive your annual membership fee? Because that's an additional expense for you! In the past, credit cards brought prestige to a a card holder. If you had a credit card, you're rich. WRONG! We're staying away from that kind of thinking.

Like power, having a credit card comes with great responsibility. You don't necessarily have to throw away your card, and if you're smart enough on how to use it then you can even leverage it to make more money.

So,  waiving your credit card annual fee actually depends on several things. I'll list as much as I can and they are as follows.

Reputation - Do you pay on time or do you default on payments? In other words, are you a good payer? "The nerve" of you to ask to waive your annual fee if you can't even pay on time. I would suggest you forget about waiving your annual fee and pay off your debts and then cut your card.

Loyalty - How long have you been a customer? Your first year's annual fee is usually automatically waived so if you retain a card for at least a year and ask for a waive of your annual fee, you'll usually be granted so.

Amount of Purchases - For most banks, there is a required amount of purchase before they can waive your annual fee. Sometimes, they will allow you to use your earned points to pay for the annual fee or ask you to make more purchases until you reach the required amount.

Enrolled Accounts -If you have several credit cards registered under one person. This of course still requires you to be a good payer. How is this possible? Remember that there are several types of cards like platinum, silver, gold, etc. Of course, before you can avail of such you will have to prove to them that you can pay for all your purchases.

Credit Limit - For people who can avail of the premium cards, waiving of their annual fee can be almost instant. Again, good reputation is required. This will still require you to phone in your bank or sign some papers if necessary.

Overall, I think that only the first three items are applicable to the regular Joe. Keep in mind that waiving of annual fees differ from bank to bank. There are those who waive annually while there are those who waive monthly. All you really have to do is call your bank and ask "politely" for your annual fee to be waived. Well.. Yeah, you can also get a little impolite.

A friend once gave me a tip that you could threaten to discontinue your membership. Hmmm... I hope I don't get into trouble by giving that advice.

Does your bank waive your credit card annual fee? Do you ask them to do it or do they proactively do it for you?

Photo by:  Andres Rueda