How To Get Out Of Annual Fee On Credit Card

Mbna True Line Mastercard*

If youre carrying a balance, youll want to get that debt onto a lower-interest card as quickly as possible. With a rate of 12.99% on balance transfers and new purchases, the MBNA True Line is worthy of consideration. Add the fact that this card commands no annual fee, and this is a powerful card for someone trying to pay off their debt.

• Interest rate on balance transfers and purchases: 12.99%
• Additional benefits: Add up to 9 authorized users without an additional fee

• Welcome offer: Get a 0% promotional annual interest rate for 12 months on balance transfers within first 90 days of opening the account.

• Note: this offer is not available for residents of Quebec

Consider Moving The Credit Line To Another Card

If you have concerns about your credit utilization, one option you have is to move your credit line from your to-be-canceled card to another card with the same bank.

For instance, if you want to cancel your Chase Freedom Flex that has a $15,000 credit limit and you also have a Chase Sapphire Preferred® Card with a $5,000 limit, you can request that Chase move the credit line from your Sapphire Preferred to your Freedom Flex. If you move $14,000 of your limit, you would end up with a $19,000 limit on your Freedom Flex and a minimal impact on your overall credit utilization, plus save the annual fee upon closing the Sapphire Preferred card.

How Often Do You Travel

If you travel only occasionally or prefer more flexibility with your points, a general travel card that allows you to transfer points to other loyalty partners is likely your best bet.

If youre not a frequent flyer, youre not locked down, says Shoaf. You can choose which airlines you want to transfer your points to.

But if you spend a lot of time in the air and have a preferred airline, you may be better off with a co-branded airline card. Many airline cards with annual fees offer lucrative perks, such as complimentary or discounted companion tickets.

In addition, special perks, such as free checked baggage, can quickly add up especially if you usually travel in groups.

Dont feel like you need to spend money on a travel card if you rarely venture beyond your hometown more than a few times a year. These days, there are premium cards for a wide variety of spending categories, including restaurants and entertainment, groceries and gas.

Read Also: Jcpenney Mastercard Apr

For Pc Optimum Points: Pc Financial World Elite Mastercard*

For those who shop regularly at Loblaws banner stores and Shoppers Drug Mart , the PC World Elite Mastercard offers a great way to take advantage of one of the most popular and useful loyalty programs in the country: PC Optimum. Heres how it works: When you use your PC World Elite Mastercard, you earn a minimum of 10 points per $1 spent, with multipliers for purchases at Shoppers , and Esso, PC Travel or any Loblaws-owned stores, like No-Frills, Fortinos or Real Canadian Superstore . Points are redeemed anywhere PC products are sold, in 10,000-Point increments, which works out to $10. PC Optimum is a valuable, easy-to-use programand the PC World Elite can help you make the most of it.

• Earn rate: 45 points per $1 at Shoppers Drug Mart 30 points per $1 at Esso, PC Travel or any Loblaws-owned stores 10 points per $1 everywhere else
• Income requirement: $80,000 personal or household income of $150,000, as well as a minimum annual spend of $15,000
• Additional benefits: Travel emergency medical insurance car rental loss or collision coverage concierge services

If Youre Not Satisfied Call Again

Persistence can pay off when it comes to negotiating credit card fees and terms. Not only that, but you dont have to accept the first no you receive. If you dont get the answer you want, you can always try the famous HUCA method, which asks you to hang up and try again. You may be connected to a different agent who is more agreeable.

See related: Does applying for a credit card by phone boost approval odds?

You May Like: Apply For Best Buy Credit Card Online

Best Credit Card For Gas Purchases

Why We Like It:

Citi is a CardRatings advertiser.

• USER SCORES

The Bonus: Earn 80,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first three months of account opening, worth $800 in gift cards when redeemed at thankyou.com.

The Rewards: Earn three points per $1 spent at gas stations, air travel and hotels three points per $1 spent at restaurants and supermarkets and one point per $1 spent on all other purchases.

The Annual Fee:$95

How do you Offset the Annual Fee? The welcome bonus alone easily offsets years worth of annual fees, but beyond that, enjoy $100 off a single hotel stay of $500 or more through thankyou.com once per calendar year. If you frequently stay at hotels, this is a nice perk that offsets the cost of the card.

Excellent, Good

PROS:

• Planning a trip abroad? Feel free to bring this card along as it does not charge fees on foreign transactions.
• ThankYou® Points can be transferred to participating airline loyalty programs, or redeemed for gift cards including for department and home stores, restaurants, and more. Or, use ThankYou® Points to shop online at Amazon.com or BestBuy.com.
• Enjoy $100 off a single hotel stay of $500 or more through thankyou.com once per calendar year.

CONS:

• If you’re after cash-back rewards, you might not find the redemption options as lucrative as some other cards.
• Though the hotel savings benefit is a nice perk, if you don’t frequently stay in hotels, you might have trouble offsetting the cost of the card.

Can You Get Similar Benefits From A Less Expensive Credit Card

As competition for new cardholders continues to heat up, lenders are increasingly adding lucrative perks to cards with lower fees. At one time, travel credits, such as application fee credits for TSA PreCheck or Global Entry, were typically found on premium cards with three-figure fees.

But now, even lower-tier cards, such as the Capital One Venture Rewards Credit Card and the Bank of America® Premium Rewards® credit card, are offering these kinds of perks. Bank of Americas $95-annual-fee premium card even offers up to a $100 airline incidental statement credit annually.

Another great example is the Chase Sapphire Preferred Card. At $95 per year, the newly updated card boasts excellent rewards rates and now offers a $50 annual credit on hotel bookings made through the Ultimate Rewards portal. The annual credit alone covers more than half of the annual fee.

Read Also: Red Card Interest Rate

Capital One Venture Rewards Credit Card Vs Capital One Ventureone Rewards Credit Card

These two Capital One cards can be confusing by their names alone. The Capital One Venture is the fee-based version, while the Capital One VentureOne does not incur an annual fee. Heres an overview of the benefits of these cards:

The Capital One Venture has a higher sign-up bonus and a Global Entry or TSA PreCheck application fee credit that you can use every four years. But, if youre not sure which card would be better for you long-term, lets look at the break-even point after your first year.

The following calculations depend on your spending habits and how you plan to redeem your miles.

If you redeem for travel at a rate of one cent per mile, youll earn 0.75 miles more per dollar spent on the Capital One Venture. As such, the annual break-even point is:

$95 / 0.75 cents per mile = $12,666.67

On the other hand, if youll transfer your miles to travel partners and agree with TPGs valuation of Capital One miles at 1.4 cents each, then youll earn 1.05 miles more per dollar spent on the Capital One Venture. In this case, the annual break-even point is:

$95 / 1.05 cents per mile = $9,047.62

Both calculations ignore the Global Entry or TSA PreCheck application fee credit that you can get every four years on the Capital One Venture. So, if your spending is close to the breakeven point and youd use this credit, it will make sense to get the Capital One Venture instead of the Capital One VentureOne.

Have A Legitimate Grievance

Nishank Khanna, CEO of business lender Clarify Capital, says youll have a better shot at negotiating if you have a compelling reason for not wanting to pay an annual fee.

If youre having this conversation with your lender to begin with, youll want to be able to articulate a logical reason for why you deserve to have the fee removed or reduced, he says. Customer service representatives are often receptive to legitimate reasons and may have a policy in place to help accommodate customers with specific concerns or circumstances.

Don’t Miss: Pay Processing Fee First Premier Bank

How Much Are Annual Credit Card Fees

While thereâs no set amount, annual credit card fees typically hover between $30 and $150, with the majority of rewards cards charging around $120.

There is a small selection of ultra-premium credit cards that do charge annual fees above the $500 mark, such as the American Express Platinum Card, but these cards have high qualification requirements and offer an assortment of high-end perks not available on other cards.

Best Credit Card With No Foreign Transaction Fees

Why We Like It:

• USER SCORES

The Bonus: Earn 60,000 Chase Ultimate Rewards® points after spending $4,000 in the first three months. That’s worth $750 in travel.

The Rewards: Earn five points per $1 on travel purchased through Ultimate Rewards® three points per $1 on dining, select streaming services and online grocery store purchases two points for every $1 spent on travel expenses and one point for every $1 spent on all other purchases. Plus earn five points on Lyft rides through March 2022. That’s three points in addition to the two points you already earn on travel.

The Annual Fee:$95

How do you Offset the Annual Fee? The welcome bonus easily covers the annual fee, but even if you don’t achieve the bonus, you can easily cover the annual fee if you are someone who travels or dines out often. For example, spending $6,000 a year on dining out and travel would net you 12,000 points. That alone would be worth $150 when redeemed for travel through the Chase Ultimate Rewards® program.

Excellent, Good

PROS:

• We really like the travel perks, such as no foreign transaction fees and trip cancellation and interruption insurance.
• It isn’t just that there are high reward rates, but there are no blackout dates, restrictions or expiration dates on rewards.
• The points earned with this card are worth 25% more when redeemed for travel through the Chase Ultimate Rewards® travel portal, meaning the bonus alone is worth $750 in travel.

CONS:

You May Like: How To Use Td Bank Gift Card Online

What Are Some Of The Best Cards With No Annual Fee

• Bank of America® Travel Rewards credit card: Best for Bank of America Preferred Rewards members

The Wells Fargo Propel card is no longer available for new applicants. The information for this card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

You May Have More Power Than You Think

According to Howard Dvorkin, CPA and chairman of Debt.com, its always worth it for consumers to negotiate their credit card fees or terms. Whether a consumer will get their fees waived is another question, but it never hurts to ask, he said.

This is especially true in light of the coronavirus pandemic. As we all know, when it comes to offering struggling customers relief, with some extending options for deferred payments or waived fees. As an example, a March 2020 statement from Capital One CEO Rich Fairbank noted that the bank was offering assistance to its customers, such as waiving fees or deferring payments on credit cards or auto loans.

Dvorkin says consumers can improve their chances of getting their annual fee waived if they have a history of responsible credit use. In some cases, it may be possible to have an annual fee waived altogether, while in others, an account credit may be offered to take the sting out of the fee.

Some credit card issuers even have their own retention offers meant to entice you into keeping your card. For example, American Express is known for offering a set number of points for customers who agree to renew their card and pay an annual fee for another year. Sometimes a specific amount of spending is required on the card as well.

See related: Which cards earn American Express rewards points?

Read Also: What Is The Annual Fee For First Premier Credit Card

Citi Custom Cash Card

• Earn $200 in cash back after you spend $750 on purchases in the first 3 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
• 0% Intro APR on balance transfers and purchases for 15 months. After that, the variable APR will be 14.24% – 24.24%, based on your creditworthiness.
• Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. Also, earn unlimited 1% cash back on all other purchases.
• No rotating bonus categories to sign up for â as your spending changes each billing cycle, your earn adjusts automatically when you spend in any of the eligible categories.
• No Annual Fee
• Citi will only issue one Citi Custom Cash Card account per person.

What Do I Ask The Bank

Ive heard from many people about how they have dealt with their bank, and invariably being polite, clear and concise is the way to go. Id suggest something like this gets the conversation off on the right foot:

My annual fee is due soon and Im considering the various credit cards I currently hold. Before I make a decision to cancel this card, could you let me know if you can offer any incentives to keep it?

Express clearly that you are considering cancellation, and could be willing to go through with it. Be clear about the reason why you are considering cancelling, if asked.

Have the cards features changed since you originally applied for it, or the rewards program no longer preferred? If the bank doesnt get good feedback, they dont know why they are losing a customer.

You should also consider clearing the balance on your card before you call. This means you should be ready to go through with cancelling your account if you decide to do so.

Recommended Reading: Self Serve Valero

When Is An Annual Fee Worth It

You can balance out the cost of an annual fee by taking advantage of cardmember perks and benefits. Credit cards that charge annual fees typically offer special vouchers, statement credits, and higher sign-up offers than cards that do not charge high annual fees. However, whether the annual fee is worth it depends on how many perks you plan on redeeming. If you do not plan on taking advantage of these perks or find that these perks are not useful for your lifestyle, you may want to look into credit cards with zero or low annual fees. Before applying for a credit card, be sure to review the card’s offerings and make note of any annual fees that might be charged on your account.

When To Downgrade A Card With An Annual Fee

There are various rewards credit cards that offer enhanced rewards during the first several months or year of use. Such cards can have the potential to save you hundreds or even thousands of dollars in that introductory phase. With such generous savings, the longer term impact of high annual fees or even high interest rates may seem unimportant at the time.

An example is a travel rewards cards. If you are in a time in your life where you are doing a lot of traveling, for business or personal reasons, such cards make abundant sense.

For example, the Chase Sapphire Preferred® Card is another, offering 60,000 bonus points if you spend $4,000 in the first three months of account opening. There is an annual fee of $95 .

If you got this type of card way back when, when you were doing a lot of travelingbut you arent anymoreyoure on the hook for an annual fee for a card thats not paying off. Its time to downgrade.

Also Check: What Bank Does Best Buy Use For Credit Cards

Tips To Save Money On Your Credit Cards Annual Fee

If you have a credit card that charges an annual fee, here are some ways to keep the cost as low as possible:

• Pay the annual fee as soon as its charged. Once the annual fee is added to your balance, pay it off to avoid incurring interest.
• Take advantage of complimentary extras. If your card comes with benefits such as rewards or complimentary insurance, the value you get from using them could help balance out the cost of the annual fee. However, its a good idea to estimate the value of these perks to make sure they are actually worth it.

Example: Working out of complimentary extras will balance out the cost of a cards annual fee

Say you have an airline credit card with a $95 annual fee and first checked bag free perk. If you travel often, you could save $30 on your first checked bag per flight. Two round trips annually and you offset the annual fee. But if you dont fly as much, a card with no annual fee could be a better choice.