Can You Get Your Credit Card’s Annual Fee Waived?

The old phrase, “You get what you pay for,” applies to many financial decisions, including the credit cards you carry. While it’s certainly possible to secure a great credit card with no annual fee, you typically have to pay for premium perks. That said, credit card issuers are sometimes willing to waive annual fees under certain circumstances, which can be as simple as making a phone call to ask.

Whether you believe the cost of a card outweighs its benefits or you simply need a break from this year’s fee, here are some steps you can take to have your card’s annual fee waived.

How to get your credit card’s annual fee waived

Trying to have your credit card’s annual fee waived isn’t guaranteed to work, but it doesn’t hurt to give it a shot, either. Here are a few potential ways to persuade an issuer to waive your fee:

1. Call your issuer

Call the customer service number on your statement or the back of your card, and provide identifying information such as your name and account number. Then, ask if you can get a waiver for your annual fee. If successful, you’re done. However, if the representative doesn’t agree to waive the fee, you may still have other negotiation options.

2. See if your issuer will waive the fee in exchange for card usage

Your issuer might provide a waiver if you meet certain conditions. For example, it could offer you a credit for the fee amount if you spend $1,000 with the card within two months. This could be beneficial if you plan to make a large purchase with the card anyway. However, it’s not wise to accumulate many charges that you wouldn’t have otherwise just to get a fee waived.

3. Ask your issuer to match another offer

If you can present your issuer with an offer for a card that offers similar perks without an annual fee, you have a strong bargaining chip. Before negotiating with your credit card issuer, make sure the card provides comparable benefits and be ready to provide specific details about the competitor’s offer.

4. Ask to cancel

You could ask to speak to your credit card issuer’s retention department and explain that you want to cancel your card to avoid being charged the annual fee. If they’re concerned about losing your business, they may offer to waive the fee. They might also suggest a product change, which allows you to switch credit cards (preferably to a card with no annual fee) while keeping the same account number.

However, they might say no and simply close the account, so you shouldn’t use this tactic unless you’re genuinely ready to cancel the card if you can’t get the fee waived. Canceling a card can negatively impact your credit score, so you should carefully weigh your options before taking this step.

5. Use military benefits

The Servicemembers Civil Relief Act limits the amount of interest and fees that can be charged on an account if the account holder is on active military duty, provided that the debt was incurred before the borrower entered active duty.

If you’re a member of the Armed Forces, a reservist on active duty, or a member of the National Guard on orders for more than 30 days, you can request a fee waiver on a credit card you opened previously — if it would increase the rate you pay on your eligible balance above the 6 percent cap set by the law.

Several cards that usually have annual fees also waive these fees for qualifying military members. You’ll need to send your credit card issuer a copy of your military orders to prove your eligibility.

How likely is a fee waiver?

Typically, card issuers charge their stated fees and are unlikely to waive them. Whether your issuer is likely to approve your request for a fee waiver depends on several factors. If you’ve been using your card for a long time and have a perfect payment history, you probably have a better chance than someone who is a new cardholder or has an inconsistent payment record. A credit card issuer might also view more favorably someone who regularly charges significant amounts to the card compared to someone who rarely uses the account.

Another option the issuer may consider is providing you with additional rewards points, card benefits, or a statement credit equivalent to your fee, instead of choosing not to charge you at all.

Even if your card issuer does not waive your annual fee, credit card expert Ryan Flanigan says a high-rewards card could still be a benefit.

Alternative ways to avoid paying an annual fee

If you cannot get your credit card’s annual fee waived, there are steps you can take to avoid paying a hefty amount.

Switch to a different card

You could ask to switch to another card from the same issuer that doesn’t charge an annual fee. This may be less of a hassle for you than canceling your card and applying for a new one with a different issuer.

However, a no-fee card may not provide the same rewards, and you’ll want to find out if you can transfer your points or miles when you make the switch. If not, you might want to redeem them or transfer them to another rewards program before changing cards. You’re also unlikely to be eligible for any sign-up offers or welcome bonuses on the new card.

Earn rewards to offset the fee

Paying an annual fee can be worthwhile if the rewards you earn exceed its cost. If you use the card strategically and maximize your rewards, you might accumulate enough points or miles to justify the fee or generate sufficient cash back to cover it.

Some of the best travel credit cards, like the Delta SkyMiles® Gold American Express Card, also offer a points or cash back bonus upon reaching a specific spending threshold. For the Amex Delta SkyMiles Gold, after you spend $10,000 in purchases within a calendar year, you can receive a $200 Delta Flight Credit to apply toward future travel, which is just enough to offset the card’s $150 annual fee.

Apply for a card that doesn’t charge a fee

You can certainly avoid paying an annual fee altogether by opening a card that doesn’t charge one. Several excellent cards are available on the market that offer generous rewards rates and perks without an annual fee, including:

• Discover it® Cash Back: The Discover it Cash Back earns 1 percent cash back on general purchases, plus a strong 5 percent cash back on quarterly rotating category rewards throughout the year (up to $1,500 in purchases per quarter, then 1 percent). However, you must activate the bonus category each quarter to earn rewards.
• Citi Double Cash® Card*: The flat-rate cash back Citi Double Cash Card offers 2 percent back on all purchases — 1 percent as you buy and another 1 percent when you pay for those purchases.
• Capital One VentureOne Rewards Credit Card: The Capital One VentureOne Rewards Credit Card earns 5X miles on hotels and rental cars booked through the Capital One Travel portal as well as 1.25X miles on general purchases.

You might also consider taking out a card that waives its annual fee for the first year, like the Blue Cash Preferred® Card from American Express. This card’s $95 annual fee is waived during the first year, which gives you an excellent opportunity to maximize the card’s value and focus on earning the welcome bonus. However, if you choose this option, you’ll encounter the same dilemma the next year: whether to keep the card and pay the ongoing fee.

The bottom line

Credit card issuers typically charge the annual fees they advertise, but if you’re a particularly valued customer, they might make an exception for you. If you don’t want to pay the fee and your card issuer doesn’t offer a waiver, you may want to consider an alternative, such as a new card with no annual fee.

*The information about the Citi Double Cash® Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the issuer.