You might’ve heard stories about banks waiving the annual fees for some cardholders—and believe it or not, they happen. As much as possible, banks will do anything in their power to make sure that you pay for every service you use. However, there will be circumstances that they will, willingly or otherwise, abide by your request to forgo payment of fees like annual fees. Is it really possible for banks to waive annual fees?
What is an annual fee?
An annual fee is a payment billed by the credit card issuer to the cardholders for the use of their credit card. Banks charge this fee because they give you the convenience of making a loan at a point of purchase. Regardless of the frequency of your card usage, you will still be billed with an annual fee. Typically, annual fees range from PhP 500 to PhP 5,000 depending on the level of card issued to the cardholder.
Is it really possible to avoid paying annual fees?
While banks would really love to charge you with annual fees for using their card, some of them will really let you cut the line and waive the annual fee. While banks may give you what you want and waive annual your annual fee, they will definitely put up a fight before you can avail of zero annual fees. Here are a few tips on how avoid paying credit card annual fees.
1. Get a card that offers zero annual fees
If you want to solve the whole annual fee debacle right before it even begins, then apply for a credit card that offers zero annual fees. Fortunately, there are a handful of cards on the market with free annual fee, and some of them even will last a lifetime. Banks designed these cards to lure customers into making the switch. While they will not charge you with annual fees for life, there still are other fees you need to watch out. However, keep in mind that some cards offering zero annual fees are top-tier cards, so make sure that your annual salary will meet the card’s requirements.
2. Tell them that you’ll be cancelling your account
Although banks can be ruthless when it comes to billing customers, it doesn’t mean that they will not go the extra mile to keep their customers satisfied. As far as annual fees are concerned, banks can be more lenient with them if you tell them that you’ll be cancelling your account and making the switch. Driven by the fear of losing customers, banks will then waive the annual fee for you just to keep you from opting out of their services. Just remember that you must have a good credit standing and impeccable payment history so that banks will really scurry in waiving your annual fee.
(Check out: Never Fall For The Following Credit Card Myths)
3. Just ask them
Whether you do it via phone or a face-to-face with a bank representative in one of their branches, it won’t hurt if you’ll just ask them to waive the annual fees. While some banks may be more lenient when it comes annual fees, others will definitely have a look at your credit card history to see if you are worthy enough to get zero annual fee for a year. You have to remember that credit card issuers are ready to take care of their loyal customers, and the only way to prove your worthiness to credit card companies is by having a good credit standing.
Fortunately, annual fees can be waived if you know the ways to convince banks. However, always be on the lookout for annual fees that are broken down into twelve monthly fees, making it more difficult to judge. Talk to your bank about annual fees and ask them the date they charge customers with the said fee.