When you want the best things in life you have to pay for it, right? Not always. Some of the best credit cards on the market that also have the best benefits such as rewards, points, free travel, lounges with free food and drinks and so much more. These credit cards that offer amazing bonuses all seem to have an annual fee. In this article we will tell you how to waive annual fees on credit cards.
What Are Annual Fees On Credit Cards?
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Annual fees refers to the amount charged every year to retain the current card and continue using its specific benefits. Annual fees are typically pegged to particular services such as rewards, premium cards, or secured cards.
The annual fees levied on credit cards substantially increase the cost of maintaining the card. It makes sense to continue sustaining such a price if the benefits exceed the cost of the fee. It is also worth noting that the annual is separate from the credit card’s interest rates already imposed.
Whichever angle you view it from, we all want to access the benefits of a great credit card without having to pay an annual fee.
What Credit Cards Have No Annual Fees?
If you are looking for a great credit card but aren’t interested in paying or dealing with a credit card that has an annual fee, we have a list of some of our favorites that have no annual fees.
This Discover card has no annual fee but offers amazing rewards. Get 5% cashback on everyday purchases (up to $1,500) each quarter at places like Amazon, grocery stores, restaurants, gas stations and using PayPal. Get 1% cashback on all other purchases. Discover will also match all the cashback you’ve earned at the end of your first year. There is no interest for 14 months and if you sign up using our link you get an additional $50 credit when you use your card.
Earn cash back twice! Earn unlimited cash back on every purchase then as you pay for those purchases you earn an additional 1% cashback on those credit card payments, there is no annual fee and you get 0% APR for balance transfers for 18 months. So if you have a credit card with a high balance and you need time to pay off the balance apply for this card.
$200 bonus after you spend $500 on purchases within the first 3 months, Earn 5% on travel purchased through chase Ultimate Rewards, Earn 3% on dining at restaurants, including takeout and eligible delivery services like Doordash, Earn 3% on drugstore purchases, Earn 1.5% on all other purchases, Cashback rewards do not expire, 0% APR for 15 months and of course No annual fees.
What Credit Cards Have Annual Fees?
There are some credit cards that are well worth the annual fees as they offer great rewards and benefits. If you like to travel, have a business, or use your credit card for almost everything then you want to find the cards that make the annual fee worth the money. Here is our list of some of the best credit cards that have annual fees.
The Capital One Spark Cash does not have an annual fee for the first year but after that, the annual fee is $95. Get unlimited 2% cashback, Earn a $500 cash bonus once you spend $4,500 on purchases within the first 3 months, Free employee cards, Spend above your credit limit with no hassle, and no over-limit fees.
Annual fee of $595, Earn 85,000 Membership Rewards Points after you spend $15,000 on eligible purchases in the first 3 months, Earn 5X points for purchases on shipping, wireless telephone services, advertising, office supplies, and gas stations in the first 3 months – up to 80,000 bonus points per category, Free Credit for Global Entry or TSA Pre, Plus rewards on hotels, rental cars, dining and so much more
Annual fee $95, Earn 80,000 Chase Ultimate Rewards points after spending $4,000 in the first three months, Earn two points for every dollar spent on travel-related expenses and dining out, and one point for every dollar spent on all other purchases, no foreign transaction fees.
Related: How To Get Rid Of Credit Card Debt
7 Ways To Waive Annual Fees For Credit Cards
1. Avoid The Annual Fee
Some of the best credit cards you can get do have annual fees as the benefits they offer to make using the card worth it. However, if you don’t want to have a card with an annual fee then don’t apply for one. As we have mentioned above, you can still get great benefits and cashback for credit cards that don’t have annual fees.
2. Ask For A Waiver
Many lending institutions have existing conditions and flexible terms on the annual fee. A phone call to the customer representative requesting a waiver can open a bucket of possibilities that can be negotiated. It helps a lot if you have a specific reason why you require a waiver. You should explain why you prefer a card with an annual fee to a no-fee card and probably demonstrate the value of their rewards and your loyalty. Good credit history and loyalty can easily win you a waiver. Someone who has a long credit history who always pays on time stands the best waiver chance. Most will waive the fee for you but if the customer service representative doesn’t budge ask to speak to a manager or the retention department.
3. Military Service
If you are active-duty military personnel you are protected by the Servicemembers Civil Relief Act (SCRA) that covers issues such as rental agreements, security deposits, prepaid rent, evictions, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, civil judicial proceedings, automobile leases, life insurance, health insurance, and income tax payments. While these are great benefits to active-duty military members, there is no clause that states annual fees must be waived. However, most major credit card companies voluntarily waive annual fees when you state you are active-duty members.
- American Express will waive annual fees on personal credit cards, over-limit fees, late fees, ATM fees, and returned payment fees.
- Barclays waives all transaction fees.
- Capital One waives all fees.
- Chase waives all fees.
- Citi waives all fees.
- Discover waives late fees and over-limit fees.
- U.S Bank waives all fees.
4. Use Your Rewards
The main benefit for using a credit card that has an annual fee is that the benefits outweigh the fee. If you are using your credit card to make most of your purchases throughout the year, you will most likely have earned enough points to pay for the annual fee. Use the free money you earned by just using your credit card to pay towards your annual fee. Most credit cards have annual fees around $100 but some business credit cards can have annual fees of $500 or up.
5. Shopping For Competing Cards
When negotiating for a waiver and the customer service representative won’t budge and the manager won’t budge, consider telling them that you received an amazing offer from a competitor and are thinking about switching credit cards. Credit card companies do not want to leave and go to a competing company, so chances are that they might waive this fee if you respectively say that you would love to stay loyal to this company if the fee is waived.
Related: Best Credit Cards For Bad Credit
6. Switch Cards
If you realize you aren’t taking full advantage of the benefits with your credit card or you don’t think the card is a good fit for you anymore consider transferring to a credit card that has no annual fee. You know yourself best, so don’t keep paying for a credit card that you don’t use. We have a list of some great credit cards that have no annual fees that we mentioned above.
Related: Best Credit Cards For Bad Credit
Sometimes, it helps to dangle an exit clause. You can achieve this by making a call to cancel the card altogether. Most issuers take time to understand the reason for canceling the credit card altogether. It helps if your credit history with them has been incident-free. Offers can be made at this stage or requests made. This call presents the ideal moment to request the annual fee waiver and most companies will grant this request to keep you as a customer. Use this technique as a last resort just in case they don’t fight to keep you as a customer and decide to cancel your card altogether.
NOTE: Canceling a credit card can negatively impact your credit score so we do not recommend closing any account unless it is absolutely necessary. Closing an account can lower your credit score by up to 100 points as it will effect your credit utilization, length of credit history and credit mix.
Ultimately, the choice of a credit card is a cost-benefit analysis trip. It requires careful consideration and calculated choices to ensure it’s a good value for the money. There are so many credit cards to choose from so do your research and find the best credit card that fits your needs.
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