Want a lower credit card annual fee? Try these 7 simple tricks | Mint

Credit cards are a great way to make smart transactions. With credit cards, you can have a luxurious lifestyle without burning a hole in your wallet. This is because credit cards provide you exclusive rewards, cashbacks and offers on almost all transactions done from the card.

However, credit cards also attract certain charges and fees which you are bound to pay. Lenders charge you with annual fees on your credit card which you have to pay annually as part of your bill statement. Let us understand how you can get the best deals on credit card annual fees.

Choose the right credit card

Many lenders provide credit cards that come with zero annual fees as a default. If you’re looking for a lifetime free credit card, you can check out these options. Some cards have a waiver on the annual fee, if you spend a certain amount in a year. You can evaluate your needs and usage with the waiver requirement and accordingly select the right card.

Negotiate with your bank

If you’ve been a regular customer of a bank and have a good credit history, you can even ask your bank to waive the annual fee on your credit card. Many banks offer waivers to their old customers as goodwill. When you’re negotiating, aim at emphasising on your credit history as well as your daily card usage. This way you can establish the fact that you are a regular user and will be spending on your credit card judiciously.

Maximise reward points

Some credit cards also offer you a feature where you can utilise your accumulated earned reward points and redeem them towards paying the annual fee. This option is usually available in the card’s reward program and this way you can plan to spend your credit limit in order to accumulate enough points for the waiver.

Spending based waivers

Many lenders offer annual fee waiver after you reach a certain spending threshold. You can plan your monthly expenses accordingly to reach the target without hurting your wallet and taking unnecessary burden. If you’re near the waiver threshold, you can also consider making a high value purchase which not only satisfies your need but also makes you meet the requirement for the fee waiver.

Switch to a card with lower rates

If your current card’s annual fee is too high, you can consider upgrading to a premium card with more benefits with the same or similar annual fee or you can also consider opting for a credit card with a lower or no annual fee. You must also periodically explore other credit cards offered in the market that fit your spending habits and have comparatively lower annual fees.

Stay updated on new policies

Credit card issuers frequently update their terms and introduce new offers. Stay informed through email updates or the issuer’s website to take advantage of any annual fee related promotions.

Avoid unnecessary cards

Multiple credit cards with very high annual fees can drain your wallet. Instead of having multiple credit cards, you can rather focus on having only those cards that fit your spending habits and do not have high annual fees. This way you can not only save on your annual fees but can also make the most out of your credit card benefits.

In conclusion, although you can get a waiver on your credit card fee by various methods. It is important to be mindful of your transactions as credit cards can make you form a habit of overspending. Unplanned transactions can lead you to a hefty bill which you may not be able to repay. Hence, use your credit cards wisely and make informed decisions.

(Note: Using a credit card carries its own set of risks)