Credit Card Annual Fee | How to Get Credit Card Fee Waivers?

Credit Cards | Singapore

If you use credit cards correctly, you should be able to get more money out of the bank than they will ever get from you. That includes paying all of your bills on time and in full, using your cards wisely to maximize your cashback, points, and air miles. And remember to call the bank every year to request an annual fee waiver. In this blog, we discuss credit card annual fee waivers in Singapore. 

Why Would Someone Pay the Annual Fee for a Credit Card?

For starters, you’re paying for the ease of using a credit card to make transactions. When you have a credit card, you don’t have to fumble with petty change or feel humiliated when you realize you don’t have any cash. You’re also footing the bill for the administrative fees of running your credit card account. If your credit card is lost or stolen, or if it is damaged and you need a new one, you may be eligible for a free replacement. All of these expenses mount up, and your annual fee is what pays for them.

Some credit card companies will give you something in exchange for paying the annual fee. Certain air miles credit cards, for example, reward you with bonus miles when you pay your annual fee, thus purchasing those miles. There are no annual fee waivers with some credit cards, such as certain American Express cards. Most of their cardholders believe that the excellent customer service and worldwide support that they provide are sufficient enough to continue paying each year. But for the remainder, you should seriously try to get your annual charge waived.

Credit Card Annual Fee Waiver

Will you be Successful in your Attempt to have Your Annual Charge Waived?

It all depends. Some banks utilize mind-boggling algorithms to evaluate whether it’s worthwhile to waive fees. But others will say yes to practically anyone who asks. In general, the more you use your card, the more you spend on it. And paying your bills on time and in full can impact their decision.

Some banks set a spending limit on their credit cards. Spend $500 on the card in the last three months. For example, they will waive your annual charge. Of course, no customer service representative who wants to maintain their job will give you the actual amount. But some may be polite enough to estimate how much extra you need to spend to meet the waiver criteria. If you’ve already spent $400 on the card, it might be worth charging another $100 to avoid paying the annual fee.

In case you can’t figure out what that spending limit is, you can ask the bank’s upper management to waive your credit card. Make certain that your appeal is accompanied by valid reasons

Are There Any Benefits to Paying the Annual Fee?

Paying the annual fee is rarely worthwhile. Even if the card’s benefits are excellent, you can save money by canceling and reapplying. When it comes to air miles credit cards that offer bonus air miles for paying the annual charge, you should perform the math (i.e. calculate the cost per mile) to see if it’s worth it to just pay the fee. However, there is one exception. If this is your oldest credit card or your only credit card, you may want to pay the annual fee.

A long credit history, especially one devoid of partial payments and late payments, can help you achieve a good credit score. If you’re thinking about taking out a large loan, such as a home loan, education loan, or vehicle loan, it might be worth paying the annual fee to avoid destroying any positive credit history you’ve built up. So, now you know the benefits and disadvantages of credit card annual fee waivers. 

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