Credit menu annual fees for points collectors are a fact of life. If yous want a card that will earn yous the nearly points, you're almost certain to accept to pay a fee with the card. But are there whatever ways to waive the annual fee?

The reply is 'yes', but mostly, yous'll be left to pay the fee once your commencement twelvemonth is up. There'due south no impairment in asking your depository financial institution if there are whatsoever business relationship retentivity offers available to you before the fee is charged.

This guide helps build a oversupply-sourced list of banks, credit cards and tactics you lot can employ to aid go your annual fees reduced or waived entirely. It'll help y'all to empathize and have advantage of if you make up one's mind to exercise the aforementioned.

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What are my chances of getting my annual fee waived or reduced?

A cardinal factor in your value to a bank is how much you lot use a card. Logic would dictate that the more than you use a credit bill of fare, the more you are worth to a bank in merchant fees paid past the retailers you shop at. Although in that location's no evidence of specific retentivity offers to back this upwards, that has to be a cistron in how much a bank would want to go along your custom.

And so if y'all have a card that you want to keep for the benefits or points earn into subsequent years subsequently you've first signed up, you lot'll probably have more than hazard of the banking concern wanting to continue y'all if you've actually used the card.

What should I consider before I call?

When it comes to actually requesting a fee waiver, this would normally be washed at the bespeak of requesting a cancellation on the card, which is about always over the telephone.

(Instead of over the phone, you could as well try using secure messaging in your banking concern's bulletin area to ensure the advice between you and your bank is clear. Still, more often than not, I've found that the bank will merely ask you lot to call them anyway.)

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It'south best to contact the depository financial institution past phone (not online).

Y'all'll need to determine before yous get on the telephone whether you lot are willing to go through with a card cancellation there and then, or whether you are only testing the waters.

Some of the main factors that would determine if y'all're willing to become through with the cancellation are:

  1. How tied to the bank you are: do you have multiple products or a mortgage package which tin can't be unbundled, for example (in which case, the residue of this guide is probably non then relevant)
  2. How close to the annual fee yous are: the closer you are, the less time you have to make a decision
  3. How many points you are owed: if using a bank rewards program you will lose the points if you lot cancel your account, so transfer them out. If you lot are on a monthly directly-sweep card, you should wait until as before long after the account has swept the points over — or ask the phone agent if they tin tell yous whether cancelling your account volition stop the next points sweep
  4. Whether you've used all your benefits: gratis flights, extra hotel nights and other travel benefits should be used before y'all cancel, if you tin
  5. Are y'all relying on insurance included with the card: if so, consider the toll and human activity of taking out your own policy if you decide to cancel the card
  6. The inconvenience of cancelling: how many direct debits you have with the card that volition need irresolute, and how much time you accept to administrate the changes

What exercise I ask the bank?

I've heard from many people about how they have dealt with their bank, and invariably existence polite, articulate and curtailed is the fashion to become. I'd suggest something similar this gets the conversation off on the right pes:

My annual fee is due soon and I'm considering the various credit cards I currently agree. Before I make a conclusion to cancel this carte, could you let me know if you tin can offering any incentives to go along it?

Express conspicuously that you are considering cancellation, and could exist willing to go through with it. Be clear virtually the reason why you are because cancelling, if asked.

Take the carte's features inverse since y'all originally applied for it, or the rewards plan no longer preferred? If the bank doesn't get proficient feedback, they don't know why they are losing a customer.

Y'all should too consider immigration the residue on your card earlier you call. This means you should exist prepare to go through with cancelling your account if you decide to do and so.

The new rules that came into effect in 2019

Note that since 1 January 2019, credit card rules take get stricter for lenders. They must provide an power for credit cards to exist cancelled online. In addition, the credit bill of fare provider is obliged to assist the cardholder in whatsoever of their requests. However, requests for fee waivers can all the same be made.

So, for case, if the cardholder says, 'I wish to close my card,' then the provider must reasonably aid in doing this, pregnant that they cannot proactively offer bonus points to retain the cardholder's business organization.

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Due to strict consumer laws, information technology all depends on how you frame the conversation.

However, if you say, 'I'one thousand thinking about closing my card, but would like to explore if y'all have any offers available to me before I decide to close,' then a bonus retention offer is however okay.

What should I expect from the bank?

Your banking company volition ordinarily be able to tell you immediately over the phone if they have an offer bachelor to you. However, you may be transferred to someone whose task information technology is to handle cancellations specifically. An offering might include:

  • A memory bonus, instead of a fee waiver (for example, bonus points or a balance transfer offer)
  • Discounted annual fee or fully-waived annual fee
  • A combination of the higher up
  • No offer at all*

*No retention offer at all is quite common, so don't get too disappointed if your bank doesn't want to assistance you out and keep you as a customer.

Summing up

The near important thing when approaching a chat with your banking concern nearly your annual fee is to be prepared.

Firstly, you'll demand to practise the maths and so that y'all tin can determine whether or non it's worth keeping the card at the total annual fee, a reduced one or only if it is completely waived.

Side by side, you'll want to make certain you take used all of the available benefits attached to the carte, such every bit free flight benefits or lounge passes. You'll also want to consider transferring all of the points out of your business relationship and paying off your balance.

Finally, when y'all do come to phone call the bank, be articulate in your asking. Make sure it invites the bank to offering you lot something, using language similar, 'I'd like to explore if you have any offers available to me earlier I make up one's mind to close this card'.

Are you in the market for a new card? Cheque out our current rewards card offers, or our table of all the electric current points earn rates on every rewards card.

In the comments beneath, many accept shared their experiences to assistance others know what their chances are in getting a fee waived or reduced for a specific card.

Everyone's circumstances with their banking company differ, simply information technology should give some idea on the various policies and offers that are out there. Feel free to share your experiences too!