Tips to avoid your Credit Card annual feeAlthough you cannot exactly “avoid” paying a credit card annual fee (unless it comes for free), there are ways to get it waived.
Talk to your financier:This strategy is pretty basic, but it usually works. If you can maintain a healthy rapport with the officials, you can get the job done efficiently. In any case, you need to be on good terms with the lender because you will need their cooperation if you want to increase your credit limit. If you express your wish to cancel your card because of the annual fee, the lender might be interested in considering your case rather than losing a customer.
Make enough purchases and investments:The best credit cards in India offer a fee waiver if you make an annual expenditure above a limit set by them. Now, that might seem like an indirect way to handle things, but there’s a solution to that as well. You can always select a card with an expenditure limit for this purpose that seems fair to you. In some cases, your credit card renewal fee for the next financial year is also waived off.
Switch to another card:If you feel that your current credit card does not suit you, you can always apply for another card. Make sure you do not switch to a different financier because then you have to go over the paperwork all over again. It is always easy to make an internal switch. However, keep in mind that a free card will not offer you the same level of privileges that a card with an annual fee would. It is always advisable that you choose your credit card with a lot of care and prudence. You can always make a switch later on, but then, you will miss out on many welcome benefits that are generally issued to first-time users.
Cancel the card:You can always cancel your card if you feel it is not worth it. However, before you pull the plug, you must weigh your options. Firstly, enquire if the benefits on the current card can be transferred to the new free card that you are considering. Secondly, unwarranted card transfers and cancellations can adversely affect your credit score. Since it is not advisable to risk your credit score, you should always research your credit card before subscribing to one.
Other fees and chargesUnfortunately, the annual fee is not the only thing that you should be careful about. You must use your credit card with trusted merchants who are based out of India. Foreign transactions are chargeable, and you must enquire about the fee before using your credit card as a payment option. Additionally, you must remember to pay all your dues well on time to avoid penalties. Make use of the auto-debit feature so that you never miss a payment. Be careful if you opt for cash withdrawals at ATMs, and make sure you are confident about repaying the amount on time. Otherwise, apart from the steep interest on the outstanding amount, your credit score will also take a hit. Finally, always make it a point to invest in the best credit cards in India, like the Bajaj Finserv RBL Bank SuperCard. Although you will have to pay a modest fee, the privileges you will access will far outweigh the costs.
SummaryYou must do your best to avoid paying an annual fee on a credit card that does not deliver. Talk to your financier, switch cards, or make enough payments to cancel out the annual fee on your chosen credit card.
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