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Get your credit card’s annual fee waived

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A reader named Becky emailed me yesterday:

Just wanted to say thanks for inspiring me to get my $95 annual credit card fee waived tonight. I remembered reading one of your previous entries about asking your bank (or credit card company) nicely for these types of things. I just got an AMEX and I asked if they’d waive my fee the first year…I think for $95, the 1 minute I spent on hold was worth it.

Of course, most people shouldn’t even pay an annual fee on their credit card. But if you spend enough to justify it, you can often get it waived by using the same principles I use when negotiating my bank: See Part 1 and Part 2.

Leave me a comment and let me know how it goes for you.

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21 Comments

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  1. It doesn’t hurt to ask. I asked and got my interest rate lowered.

  2. Hey Ramit, my card doesn’t have any annual fees; however, my interest rate is relatively high I think. I saw Laura’s comment about getting her interest lowered, so I’m actually going to give Chase a call today and see if I can get my interest lowered as well.

    I’ll let you know how it goes.

    - Jun

  3. I have an annual fee credit card and I get my fee waived every year just by calling them. It works only if you pay your balance in full. I wrote a detailed post on this too. If you are interested knowing how I do it, copy and paste this link into your browser – http://adawnjournal.com/2007/08/23/updated-is-it-possible-to-hold-an-annual-fee-credit-card-and-still-pay-no-annual-fee/
    Cheers,
    A Dawn Journal

  4. Yes, but be careful. I read in the NY Times last weekend about a woman who called to dispute a charge who ended up having her credit limit reduced as a result of the call. Banks are pulling in their reigns. That’s not a big deal if you don’t carry a balance, but if you do, your debt-to-income ratio could shoot up resulting in a reduction in your credit score. In this environment, you either have impeccable credit or you can’t borrow…

    SpeciousRiches
    http://speciousriches.wordpress.com

  5. I was really shocked to discover that americans pay an annual fee towards their credit card. I live in Israel, there is an annual fee, but the majority of the population doesn’t even pay it. Take AMEX card for example, people who order this card get it 3 years free of annual fees, similar deals can be made using VISA cards as well. Even if you do pay an annual sum, it never reached 95$…. not even on gold credit cards.

  6. I’ve found whenever dealing with financial companies that they’re usually willing to remove any fees or what-not that you’ve incurred. It only takes a phone call.

    Thanks for pointing this out Ramit!

  7. Even with a few very old skeletons in my credit closet, I have been able to eliminate most fees and reduce interest rates through negotiation and paying balances in full with rare exceptions for the past several years.

  8. I tried it. AMEX would not wave my $100 annual fee.

  9. Usually it only takes a call. It also helps to be nice, to a point. These CSRs deal with angry people calling all day, sometimes it’s refreshing for them to hear someone more pleasant, which in turn makes them more willing to help.

  10. If you pay an annual fee, it’s time to get a new credit card.

    But really, none of us should be using credit cards at all. We should be living within our means, saving, investing, and building some kind of emergency fund so when our cars break down (or whatever), we don’t need to charge it.

    Fees are the enemy of those of us seeking financial freedom!

  11. [...] credit card has an annual fee, Ramit Sethi suggests calling and asking to have the fee waived. (Read it at I Will Teach You To Be [...]

  12. I find it’s a trade off – either you have no fee but high interest rates, or a low rate with some kind of fee. Of course in a perfect world none of us would carry any balance, so the first choice would be the way to go. Still, if you’re looking for both it can be tricky.

    I do have one card with Capital One that has a low rate and no fee, but it’s the exception.

  13. @Thisson: http://www.iwillteachyoutoberich.com/blog/credit-card-perks-you-didnt-know-about-part-2 Check out that and part one on why credit cards aren’t all so bad.

    On cc interest rates and annual fees, it’s not impossible to have a low interest credit card with no annual fee. I’m only 21, but my CapitalOne card has no fee and a 5.9% APR and my Discover w/ rewards has no fee and 10.9% which isn’t LOW, but it’s still lower than most of my parents cards. That and I don’t carry a balance on it.

  14. At Bank of America, the only way to get an annual fee waived it to close your account. The annual fee is assessed to the card because of the benefits you get with that card. You get more benefits with a card with an annual fee then one that has no fee. So if you don’t want the annual fee don’t have that particular card. There are a lot of cards out there that have no fees.

  15. Pretty girl in Pink Link to this comment

    Okay, So I’m one with not the best of credit so most credit card companies apply at least 170 dollars for annual fee’s. I would love to get this waived.

    Let me get this straight. All I need to do is call up the bank and simply say
    ” I see an annual fee on my cc I want it to be removed”.

    and if the rep says no, this is not going to happen,

    I say

    ” Well what can you do for me?”

    mmmmm, I don’t see this is likely…. can someone assure this will happen

  16. why do you need to be assured pretty girl in pink? what is the worst that could possibly happen? they say no?

    make up a talk about how moneys a little tight and you think 170 bucks is a little High, hell i just opened a new credit card and the fee was only 39.99.

  17. Pretty girl in Pink Link to this comment

    Mr. BThappy,

    I went ahead and did as you said and absolutley nothing! So much for these banks want to keep you as a customer. Infact First Premier Bank Rep said if you’d like we can close you account so you don’t have to pay the fee’s.

    Ya, Ummmm Ramit these days banks don’t care for their customers like they use to back in the day… Especially the banks I have to bank with “bad credit” they know I need them to improve my credit at the end of the day.

  18. pamela from oz Link to this comment

    I am a credit card user the Banks hate…in fact they have a name for people like me…but can’t remember it unfortunately, lol.

    Just received an offer from American Express for one of their credit cards and it states there is NO annual fee, there are rewards attached and 55 day free of interest. Also if I spend $550 before the end of February they will also send me a lovely wheeled travel bag.

    I have taken up the offer but just noticed on line that this card does have an annual fee according to Website. Rang and queried why my letter states NO ANNUAL FEE and yet website says there is one. Response was that I had received a special offer. Most interesting; was not aware they did this. I thought everyone was treated the same; apparently not! The normal annual fee for this particular card…Choices…I think it is called…is $49 a year.

    The operator said there will be no fee for the life of the card. I should have asked what exactlyt that meant. Maybe it just means until its expiry date and when the new card is issued I will be asked to pay the $49 fee. That is when I will ditch it, lol.

  19. I tried to have my Amex fee waived. Tried all of the method here promoting that I have been a loyal customer for 10 years and always paid on time. I was given the option of paying for the fee with points, and or moving to a lower fee card, but they were not going to waive any fee. Well they have just lost a customer and I will move my spending elsewhere.

  20. I just called Amex & they refused to waive $45/year fee. I asked for supervisor, same thing. They offered other cards with zero fee, reminded me that I agreed to pay fee when I signed up for card, & really didn’t care at all that I was planning on taking business elsewhere.

    (On a positive note, 15 minutes on the phone with Comcast just now resulted in $257 savings over next 6 months.)