Most credit cards are free, but many charge an annual fee. Some cards have small annual fees of as little as Rs 500, but premium credit cards may have an annual fee of Rs 10,000 or more.
The annual fees of credit cards are justified by the benefits they provide. A card may provide substantial rewards and reward points. It may also offer travel perks like free tickets, free lounge access, priority boarding, and so on. The more you travel, the more benefits you can avail.
Before applying for a card with a membership fee, you should evaluate whether the benefits align with your needs and whether they will outweigh the annual fee.
How To Waive The Annual Fee
However, there are ways in which the annual fee can be waived.
Many banks waive the annual fee if you spend a specific amount in a year. “For instance, if your annual spending exceeds Rs 1,00,000, the fee might automatically be waived. Check your card's terms and conditions to see if such a waiver is applicable. Some issuers allow you to redeem accumulated reward points to pay the annual fee. If you have neither option, you can still try calling the bank and requesting a waiver.” says Adhil Shetty, CEO, BankBazaar.com, a fintech co-brand credit card issuer.
At times, promotional offers may waive the annual fee for new customers or those renewing their cards. If you can show, based on your spending patterns, that you are a long-standing or high-spending customer with a good track record, the bank may be willing to waive your fees or upgrade you to a higher-tier card with the fees waived.
If all fails, you can request to be moved to a card with no annual fee if you feel that your current card isn’t offering sufficient benefits to justify the cost. Before requesting a waiver, make sure that your card has no missed payments or overdue balances, as this strengthens your case,” says Shetty.
