Push Admin

7 tips so that you'll never have to pay credit card annual fees again

Article (news)

Aneth Ng-Lim

<p>When I used to work for a credit card company, I would get requests from family, friends and even strangers all the time to waive their credit card annual fee. I remember having an elevator pitch ready to explain why they needed to pay it (partly because it pays our salaries). And the higher the annual fee, the harder it was to win the argument.</p><p>Now that I am no longer with that company, and paying annual fees like the rest of the masses, I could understand where all the requests were coming from. A quick check of credit card issuers in the country showed that their annual fees range from a reasonable P1,500 to as much as P12,000! I don’t know about you, but whether it’s P1,500 or P12,000 or any amount in between, I would rather keep that in my wallet. Here are 7 tips to keep you from ever paying annual fees again.</p><div><strong>#1 Sign up for cards with no annual fees</strong></div><p>Likely in response to requests for fee waivers, many credit card companies now offer “no annual fee for life” credit cards. This is a great option for those who want to be spared the annual call to your credit card issuer first asking, later negotiating and finally begging them to waive the fee.</p><div><strong>#2 Redeem fee waivers with earned points</strong></div><p>Check the rewards catalog of your credit card and it may have the option to redeem an annual fee waiver. This way, you do not have to make an appeal and you simply use the points earned from purchases made with your credit card. I once tried this, but later realized I would rather use my points for things I can actually enjoy like frequent flyer miles or cash credits (which meant I had to go begging for the fee waiver).</p><ul class="op-related-articles"><li><a href="https://news.abs-cbn.com/blogs/business/09/13/21/buried-in-credit-card-debt-youre-not-alone">Buried in credit card debt? You’re not alone</a></li><li><a href="https://news.abs-cbn.com/business/09/24/21/should-you-get-a-supplementary-credit-card">Should you get a supplementary credit card?</a></li></ul><div><strong>#3 Ask for conditional waivers</strong></div><p>Once when I requested for a fee waiver, I was told that I need to spend P15,000 within 30 days to get approved. I said yes because I was just about to pay an insurance premium that would cover that. All credit card companies have a threshold they consider before they give you that waiver. It can cover anything from good payment behavior to your spending. If you can meet their conditions, I say go for it and get that savings.</p><div><strong>#4 Hit that spend target</strong></div><p>Check with your credit card company if they have a spend target that will automatically grant you an annual fee waiver. This will save you the roller coaster of emotions and also help you plan your spending for the credit cards that you own. Some require an annual spend of P120,000 while others need double or 3 times that amount. This can also help you decide which cards to let go.</p><div><strong>#5 Banking with your credit card</strong></div><p>Another way to get concessions with your credit card is if you also open a bank account with them, or it could be the other way around, where you applied for the credit card of your bank. It was the latter for me, and because the branch manager was the one that strong-armed me into applying for a credit card, I could run to her not just for annual fee waivers but also for other account concerns. I admit she does not always come through for me, but so far she delivered 7 times out of 10 so that’s good enough for me.</p><div><strong>#6 Offered a gift? Take it, take it!</strong></div><p>My mom is a tougher customer than I am and once when she asked for a credit card waiver and got declined, she told the customer service officer to cancel her card. It helped that she did not have any bills enrolled for automatic payment, nor any installment plans. After she ended the call, she thought that was the end of it but then they called again to say they reviewed her account and they can give her a 50% discount on the annual fee plus a designer bag (which cost more than the annual fee). Offended by their earlier rejection, she was going to say no but we told her to take it, take it! She can always cancel next year, or go through the circus all over again.</p><div><strong>#7 Be ready to walk away</strong></div><p>Just like my mom, consumers have been known to threaten credit card companies to give up their card if they do not get a waiver. Before you play this trick, make sure you can walk away if they firmly say no. One way to do that is to have a second, even a third credit card that you can use when they turn you down. Some cards are worth holding on to (more generous rebates and points, promotions that fit your lifestyle) while others are just plastics taking up space in your wallet so bargain wisely.</p><div><strong>RELATED VIDEO</strong></div><figure class="op-interactive"><iframe frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1496255" width="100%"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div>

I don’t know about you, but whether it’s P1,500 or P12,000 or any amount in between, I would rather keep that in my wallet.