The world of credit cards is filled with options for every consumer, and annual fees reflect the benefits and perks various cards offer. You can get no-annual-fee credit cards; otherwise, fees can range from $95 to upward of $1,000.
If you own several credit cards, the annual fees can add up. If you believe you aren’t getting the most value out of a card or don’t wish to pay an annual fee, there may be a way to have it waived.
How to get a credit card annual fee waived
Not having to pay the annual fee on one or more credit cards can save you money. Here are some steps you can take to get an annual fee waived.
Set a calendar alert for the next annual fee
Your credit card annual fee is posted to your account on the anniversary of opening your card. For example, if your credit card account was activated in July 2023, your next annual fee will be posted on or around the same date in July 2024.
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If you don’t remember when your credit card annual fees are due, set a calendar alert on your phone or computer to remind you. Issuers are usually willing to make account changes, waive fees or provide offers regarding the annual fee within 45 days of the fee posting.
Call your issuer
The next step is to call your issuer using the customer service number found on the back of your card or your monthly statement. After verifying your information and identity, you can request a waiver for your annual fee.
If your issuer agrees, you’re good to go; however, if it does not, you have other options.
Ask for a retention offer
If your card issuer is unwilling to waive the fee, it may be time to ask the representative about any retention offers on the account. Companies offer retention offers to retain customers’ business.
When asking about a retention offer, it helps to use specific phrases, such as “I’m thinking of closing my account,” or “I’m not sure if the annual fee justifies the benefits.”
If you mention closing your account, be vague so the representative does not start the process of closing the account and instead offers to keep the account open if any offer is available on the account that would change your mind.
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A retention offer may not always waive the fee, but it can offset it via a discount or points and miles if you can spend a certain amount of money within a set time frame (similar to welcome offers).
Related: Quick Points: How to use retention offers for extra points and miles
How likely is a fee waiver?
Your luck may vary from issuer to issuer when trying to have your annual fee waived. I have asked for a fee waiver in the past, and when asked for further explanation by a representative, I’ve been referred to retention offers available on the account.
I never request a fee waiver; instead, I ask for retention offers across all my credit cards.
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Although it is possible to get a fee waiver, it’s in the issuer’s interest to keep you as a customer and provide you with a retention offer rather than waiving the fee outright. Remember that when asking for a fee waiver, your account must be in good standing, with no past-due balances or other negative remarks on your account.
How to avoid credit card annual fees
If you don’t wish to negotiate your credit card annual fee or ask for other offers, consider the following ways to avoid the fee.
Military benefits
Some issuers, such as Chase and Capital One, recognize the Servicemembers Civil Relief Act. This benefit applies to active military personnel and their immediate family members. Benefits vary from issuer to issuer, but it could include waiving annual fees for credit cards.
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For those who qualify for SCRA, call your credit card issuer to check which benefits apply to you. You may be asked to provide documentation proving your active duty status.
Related: The best credit cards for active duty military: Get waived annual fees
Card downgrades
If you’re unhappy with your annual fee, you can avoid it by downgrading your card to a no-fee version within the same credit card family. Keep in mind that if your credit card earns points or miles, you may be unable to redeem them for travel or transfer them to partner airlines or hotels when you downgrade.
Related: Considering canceling your credit card? Here’s why you might want to downgrade it instead
Choose a no-annual-fee card
If you don’t want to deal with fees, consider a no-annual-fee credit card. There are two ways to do this: Select a credit card that waives the fee for the first year or choose a card that doesn’t have an annual fee.
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For example, the Chase Freedom Flex℠ has no annual fee and offers cardholders generous cash-back rewards.
Related: Best no-annual-fee credit cards
Bottom line
Annual fees are common with credit cards that offer enhanced benefits and rewards. If you feel your card’s annual fee doesn’t justify the benefits, call the issuer to see if it’ll waive it, provide a retention offer or reduce it.
If that doesn’t work, consider downgrading your card to another product with a lower or no annual fee. Regardless of your chosen route, remember to always weigh the pros and cons when opening a new credit card and understand how to maximize your benefits.