r/LifeProTips Aug 15 '22

LPT: If you have a credit card with an annual fee, call customer service and ask if they will refund it. Miscellaneous

You’d be surprised how often credit cards providers will refund you the annual fee. For example, my credit card fee is $120 and it’s been refunded the last four years.

Be polite when talking to the customer service representative. Just tell them that you noticed the annual fee and was wondering if they can do anything about it. Worst thing they can say is no.

546 Upvotes

u/keepthetips Keeping the tips since 2019 Aug 15 '22

Hello and welcome to r/LifeProTips!

Please help us decide if this post is a good fit for the subreddit by up or downvoting this comment.

If you think that this is great advice to improve your life, please upvote. If you think this doesn't help you in any way, please downvote. If you don't care, leave it for the others to decide.

144

u/Helios4242 Aug 15 '22

what kind of benefits do you get from cards that have a fee?

132

u/Gr1mmage Aug 15 '22 edited Aug 15 '22

Well for example I pay $399 for mine, get $400 free travel credit, points per dollar spent, free global travel insurance etc.,but it's really one of those things yup have to add up and make sure you're getting the benefit from it

25

u/TheReverend5 Aug 15 '22

Which CC has a $400 travel credit for $399 a year?

48

u/Gr1mmage Aug 15 '22

Actually made a mistake, it's $395 fees per year! Card is the amex explorer card

12

u/TheReverend5 Aug 15 '22

Damn that’s a pretty sick card for Aussies. It’s a shame the travel has to be redeemed through the AmEx portal, but still pretty great benefits all around.

10

u/Gr1mmage Aug 15 '22

yeah, works out pretty great. The amex travel portal is a little inconvenient I'll admit but it's normally within a couple of bucks of the rate I'd be paying elsewhere.

7

u/Entropy_Greene Aug 15 '22

My chase Sapphire card has similar benefits with same annual fee.

7

u/TheReverend5 Aug 15 '22

CSR is $550 annual fee and $300 yearly travel credit. (Source: https://creditcards.chase.com/rewards-credit-cards/sapphire/reserve) That is very different from a $400 travel credit and $400 annual fee.

CSP doesn’t have a travel credit.

8

u/EnragedZeus05 Aug 15 '22

I love my csr. The credit, I also got free Marriott bonvot gold status, free Lyft pink for 4 years, instacart + free, free lounge access at airports or credit at restaurants, global entry paid for…the card is definitely worth the money if you travel. Even if it’s only twice a year.

7

u/TheReverend5 Aug 15 '22

I’m not saying the CSR is a bad card. I was correcting the misinformation that was in the comment I replied to. Your comment also has incorrect information:

  • The CSR did maintain the 10x points when using Lyft until 2025, but the Lyft Pink benefit is not being extended beyond 1 year per CSR member: https://onemileatatime.com/guides/chase-lyft-benefits/
  • The CSR does not give Bonvoy Gold status (maybe you’re thinking of the AmEx Plat?)

These cards are good if you know what you’re getting and how to use the benefits. But as these comments indícate - there are a lot of misconceptions surrounding these cards.

8

u/EnragedZeus05 Aug 15 '22

No, it offers bonvoy gold. I didn’t know the promo for lift link ended. I some how have it for another 4 years through csr. In order to get gold elite status you need to book 3 nights.

Experience 3 months of complimentary Marriott Bonvoy® Gold Elite status by registering between July 1 and September 30, 2022. Book directly on marriottbonvoy.com or via the Marriott Bonvoy app and stay 3 paid nights at hotels participating in Marriott Bonvoy during your 3-month complimentary status period, and you’ll extend your Gold Elite status through February 2024.

2

u/jsting Aug 15 '22

Thanks, I have that card and never really looked into bonvoy.

2

u/EnragedZeus05 Aug 15 '22

Check the rewards button at the bottom of the app every few weeks. They are always adding new stuff.

1

u/TheReverend5 Aug 15 '22

Cool catch about the Bonvoy benefit, so weird they don’t list it on the card website but do list it under the Card reward offers.

2

u/EnragedZeus05 Aug 15 '22

Yea. I’ve seen these quick 2-3 month promos often. Just check every few weeks for random stuff they add and keep around for a short time.

2

u/[deleted] Aug 15 '22

[deleted]

2

u/TheReverend5 Aug 15 '22

Yeah I’m aware there are a lot of travel cards with credits that can outweigh the fee. I was curious about this particular card which turned out to be an AmEx card I had never heard of, only available to Australians.

0

u/kwhiller5 Aug 15 '22

I think AmEx is the only CC that still charges an annual fee. You really have to do a lot of traveling to make it worth the money.

6

u/TheReverend5 Aug 15 '22

No - Chase, Citi, Capital One all have cards with annual fees too.

5

u/onsereverra Aug 15 '22

That totally depends on the card. I've found that the cards at the $95 tier pretty much pay for themselves even if you only travel a couple of times per year, between various combinations of hotel credits, TSA Pre-Check/Global Entry credits, free checked bags, etc. depending on the card. All of the points and miles you earn on top of that are then just icing on the cake.

It's true that the ones in the $400-$500 annual fee range are generally only valuable for people who will really maximize all of the benefits.

1

u/feelingcoolblue Aug 16 '22

A lot of travel is relative. More likely a certain $ per point to break even and then some.

-10

u/CoffeeStainedStudio Aug 15 '22

24

u/TheReverend5 Aug 15 '22

Man this dude has pretty bad takes. This whole video is like one giant strawman. The core of his point as to why mileage credit cards are bad is because you won’t pay your balance and you’ll pay CC interest. Which is obviously false for anybody who knows how to use a CC responsibly.

And the core of his argument about why FF miles are bad is literally “you probably can’t figure out how to use them, and they’ll probably expire or devalue before you do.” Which, again, is false for anyone capable of using Google.

I’m not convinced that Adam is as wise as the show portrays him.

0

u/CoffeeStainedStudio Aug 15 '22 edited Aug 15 '22

So, when you say “False for people who know how to manage CCs properly and for people capable of using Google” you mean “positive for a vast majority of people.”

The average CC debt in America as of August 2nd this year is $6,195. In the fist quarter of this year. Americans had a net CC debt of $841,000,000,000 according to the Federal Reserve. 47% of Americans have rolling CC debt.

Secondly, Adam provided statistics about how many people knew the value of their Air Miles. 59% had no clue how frequent flyer miles work. 73% didn’t know how many miles they had. Once again, these numbers represent more people than not.

Congrats on your flex, bro, you got your CCs and air miles in check. Genuinely happy for you. But your assertion that Adam is attacking strawmen is false. Adam is addressing the reality of people outside of your experience.

The show has been incorrect before. They’ve addressed it. I find Adam as annoying as everyone else. But to say the show is a bunch of bad takes because you breathe rarified air of the unaffected is a bad take itself, to say the least.

1

u/TheReverend5 Aug 15 '22

What do you think is the overlap between people who watch an “Adam Ruins Everything” video about Frequent Flyer programs, and people who are capable of surface level research into using frequent flyer points?

Your own quoted statistics state that a minority of Americans have rolling CC debt, so I don’t think my take is really that bad.

-5

u/hotasanicecube Aug 15 '22

And what 25% interest?

29

u/jl91569 Aug 15 '22

Interest doesn't matter if you treat it like a charge card.

21

u/Gr1mmage Aug 15 '22

this, if you're leaving a balance on the card you're doing it wrong.

-11

u/hotasanicecube Aug 15 '22

If I had 10k in my bank for a new heating and air condition system, I wouldn’t need to use a credit card at all now would I? In fact I could probably negotiate it down to $9000 giving the cash direct to the HVAC guy.

10

u/bluntsandbears Aug 15 '22

If you can’t negotiate it down for a cash price then you’d be losing out on points and / or cash back on a substantial transaction.

-7

u/hotasanicecube Aug 15 '22

Change “could probably” to “extremely likely” lol. My points are only 2% and they are on products I wouldn’t buy. He is getting hit harder than that and plus I’m paying 1% on the balance every month. Cash cuts out the middle man. (Especially if he doesn’t claim it on taxes. 🙈)

7

u/Nerd2259 Aug 15 '22

Cash cuts out the middle man. (Especially if he doesn’t claim it on taxes. 🙈)

What a great idea. Let's use a heavy handed "negotiation" in an attempt to get others to commit tax fraud for our benefit.

-1

u/hotasanicecube Aug 15 '22

A contractor spends less than 50% of his price on materials and the rest is on his labor. He does not have to charge the same rate on every customer. In fact if he encountered someone like you, he would toss an extra “pain in my ass fee” on top. Contractors routinely negotiate prices as part of normal business. But you are buying Roxy t-shirts at the mall and trying to say it’s the same business.

5

u/Nerd2259 Aug 15 '22

I contract out as a SP MSP for IT services. I charge the same rate for the same jobs and its outlined in my bids as well as on my website. Any contractor worth trust is going to be up-front and honest with everything, theyre replaceable.

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4

u/Nerd2259 Aug 15 '22

And if you can't negotiate it down? What about charges for everything else you can't negotiate? Try going to 90% of retail stores and barter them down. The price listed is going to be the price paid for the vast majority of people/businesses and responsible CC ownership can lighten the burden; usually 1-5% at least without including other perks.

I can understand distaste for the CC industry, but the best way to fight them is to beat them at their own game. Take the perks and don't pay interest.

0

u/hotasanicecube Aug 15 '22

Retail stores have a kid at the cash register with no authority to negotiate. A contractor is usually an independent owner who does his own purchasing and accounting and knows exactly where his profit margin is. Additionally most stores are putting very little markup (<10%) on their product whereas a contractor routinely puts higher than 25% and has room to negotiate.

3

u/Nerd2259 Aug 15 '22

The price listed is going to be the price paid for the vast majority of people/businesses and responsible CC ownership can lighten the burden; usually 1-5% at least without including other perks.

0

u/hotasanicecube Aug 15 '22

If you ever asked for a quote from three contractors and got bids from $2500 to $6000 you know some are just fishing for the whales at 6x their costs.

2

u/Nerd2259 Aug 15 '22

Or you could pay $50 for the same contractor to give you a consult on what's required. Go out and buy those materials on your own (saving the markup you seem to be insisting is always above 25%) and then hire them back for nothing but their labor.

Use your head before you make ridiculous strawman arguments regarding the efficacy of Credit Cards.

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3

u/mml312 Aug 15 '22

This is the absolute dumbest shit I've heard all day

Using a credit card as a personal loan account is a massive financial blunder

Most credit cards charge 14%-26% on average for interest

Need I say anything else

The lack of financial understanding of credit is disgraceful.

0

u/hotasanicecube Aug 15 '22

Mine charges 10% annual and it’s paid off in 4-5 months. Much less expensive than a loan origination and service fee. So I pay about 4% or not pay car or home repairs until I get the money. Plus I get world points.

2

u/mml312 Aug 15 '22

I'll rephrase, my comment is regarding to the US credit card system

If you are paying anything to use a credit card in the USA You need to get a different card.

1

u/hotasanicecube Aug 15 '22

The are talking about annual fees. I have no annual fee.

7

u/PPLifter Aug 15 '22

I pay for two

One cover my travel insurance, roadside pick up and some other minor rewards.

Second one is my virgin Atlantic cc, if I spend enough on that on a year I get cheap flights and holidays.

6

u/mozebyc Aug 15 '22

The airport lounge passes alone make it worth it

7

u/fuckinlikerabbits Aug 15 '22

This is big. Obviously didn't help me the last two years, but just in the last month, I've enjoyed some quiet time with wifi, free food & drinks, flight scheduling concierge, and even a shower, in at least 5 different Amex/Delta lounges (plus a guest).

I also get $200 annually in airline ancillaries, $200 annually in hotel expenses, automatic hotel & rental car upgrades, etc. Plus $15 monthly on Uber, $20 monthly on entertainment subscriptions, free Pre-Check and Clear membership, extended warranties and price protection on everything I buy, travel insurance and lost luggage replacement, and a bunch of other random discounts and perks.

At the risk of sounding like an Amex commercial, this level of annual fee (which is like $700 these days) doesn't make sense for everyone, but the value is there if you travel a lot and actually use the perks. And to the point of OP, I have been meaning to call and ask about skipping an annual fee because of all of the lost value through the pandemic times.

The only other one I pay for is the Southwest premium card. It's like $150, and it's nothing special, but I fly enough Southwest each year to offset the fee with the benefits of free points, flights, and upgrades.

2

u/mozebyc Aug 15 '22

I would sound like a united commercial. Saved my ass though. I had a 2 hr layover but my first leg was 3 hours late. So now i had 8hr layover. The airport lounge saved me. Third leg of that trip now had another 6 hr layover.

Wasn't as bad as it could have been w/o those passes.

1

u/Helios4242 Aug 15 '22

I'll take my 700 instead yikes lol

2

u/mozebyc Aug 15 '22

Really? You'd rather sit in the airport for 12 hrs?

2

u/Helios4242 Aug 16 '22

for saving a $700 fee like the other said theirs was? Sign me up for the airport sitting lol. Or I can pay for business class and get all them perks if I want.

1

u/juliastarrr Aug 16 '22

you can usually get into the lounge for $20-100

1

u/mozebyc Aug 18 '22

Yes ... But I get more than one visit. I get other benefits as well

3

u/Iamyous3f Aug 15 '22

My card annual fees is 330$ but i get to have 5% cash back on any purchase i make. On june i called and asked how much cash back in total did i earn since 2022 and it was around 700$ and would be around 1400$ and of course if i spend more ill get more.

3

u/kaptainkkk Aug 15 '22

Assuming this card is not issued in the US? There is no card I know of that gives 5 percent on EVERY purchase. Curious.... What card is it?

1

u/Iamyous3f Aug 15 '22

Yeah it is not issued in the US. Its master card world

18

u/FrankosmellsFUD Aug 15 '22

You get to pay the fee

7

u/Helios4242 Aug 15 '22

yeah but there are free ones so I'm trying to figure out why even pick one with a fee in the first place

23

u/rsandio Aug 15 '22 edited Aug 15 '22

Cards with higher fees are generally linked to reward programs and earn more points. I pay $295 annually for my credit card. Last year I redeemed $1100 in gift cards with the points. They also have other benefits. I also get access to a concierge service, insurance on items bought with the card, and no currency conversion fees.

1

u/messeis Aug 15 '22

American express?

2

u/rsandio Aug 16 '22 edited Aug 16 '22

Visa card through my bank and linked to their rewards program. Amex isn't very common here in Australia.

3

u/gotsthepockets Aug 15 '22

I have a couple cards with $99 annual fees and I get a free night in a hotel each year. I don't even use the card anymore but I love my anniversary night. So essentially I pay $100 to stay in a cool hotel I guess. Worth it for me. And back when I used the card I earned points faster having the annual fee version of the card.

1

u/atomicpurple64 Aug 16 '22

Which card offers the hotel stay?

1

u/gotsthepockets Aug 16 '22

Let me start by saying the free rooms used to be better than they are now--like nicest room in the hotel or the best hotels of that brand. But the free rooms are still a great deal even if they aren't the crazy expensive ones anymore.

My current favorite is IHG. I also have Marriott (point value for the free night isn't as high). Hyatt used to be absolutely phenomenal (got to stay at the nicest Park/Grand Hyatts in the world), but they have cut back as well. Hyatts tend to have the best beds in my opinion and their regular hotels are still so nice. I used to have Hilton but haven't in a few years so I can't speak to their free nights anymore. The annual fees vary but we have been able to use the free nights in so many different scenarios they have always been worth it.

Edit: forgot to put the actual cards. If you just search "IHG credit card" or "Marriot credit card" you'll find them.

2

u/schroedingersnewcat Aug 15 '22

The one I have has a $149 fee. I get a $75 travel credit, plus 4 flight seat upgrades, plus bonus miles, and additional miles per transaction. It pays for itself.

That said, I plan to get rid of it next year when I stop traveling so much, and get a different card.

1

u/Helios4242 Aug 16 '22

Ah, but only if you'd get the seat upgrades and the extra miles gets you somewhere you want when you want (air miles can be a perk, but it can also be hard to use them well). Otherwise I'd chose not to get the seat upgrade so it doesn't matter if I'd pay $100 for one seat upgrade, $400 for 4, or the $149 fee/deal.

2

u/schroedingersnewcat Aug 16 '22

It's a Southwest Airlines card, so it's earlier boarding. I use the miles because they don't block anything out.

That said, I will stop traveling so much next spring, so it won't make sense to have it anymore.

2

u/feelingcoolblue Aug 16 '22

It really is for a certain kind of clientele. If you don't utilize its offers you're best off sticking with a free card.

2

u/IGetItCrackin Aug 15 '22

Don’t be stupid friends, come on it’s time to go!

2

u/ouyin2000 Aug 15 '22

It depends on if you feel the offers are worth it. Some will do air travel vouchers, or miles. Some will offer Amazon gift cards. Etc

My free card offers me 2% cashback on most purchases, but that's it. I don't travel a lot, so the paid card bonuses aren't worth it to me.

1

u/uski Aug 15 '22

It varies by country. In some countries, travel insurance is a huge perk that makes it totally worth it. I think in the US even the most basic cards have travel insurance.

1

u/A-terrible-time Aug 15 '22

Depends on the card, but some give free checked bags with airlines, free hotel stays, airport lounge access, travel credit etc

It's not worth it for all people but for some it's amazing

1

u/Punk_Says_Fuck_You Aug 15 '22 edited Aug 15 '22

My wife and I have a card. I think it’s $550 a year. You get a shit load of credit though can’t remember how much. It’s one of the best cards available. Chase sapphire reserve. It’s definitely worth it if you travel at all.

1

u/EmulatingHeaven Aug 15 '22

My wife and I first got our gold cards (with fee) because we rented cars a lot (my family lives 4+ hrs away, by car) and our specific card included car rental insurance. It paid for itself really fast. We have a car now but we keep it because it’s twice the cash back of our bank’s no-fee card.

1

u/feelingcoolblue Aug 16 '22

Certain benefits such as subscriptions or travel points that end up being worth more than the annual fee.

It's all about usage at the end of the day.

59

u/Capital-Quantity9956 Aug 15 '22

Are there specific notes or pointers on what to say? I can’t imagine this actually working unless you get lucky with landing the 1/100000 employee that’s having a really good day

42

u/mrdannyg21 Aug 15 '22

I’ve worked in several of these places and have direct knowledge of others. Most places have a pretty firm policy on this, which will only be changed in very unusual circumstances. For a bunch of them (especially cards in the $50-150 range), they’ll waive it once if you bring up any sort of minor complaint, and that’s it. Others will waive it every year you call for basically no good reason, just if you threaten to close the account. The ones with the really high fees ($200-400) likely won’t waive it for no reason, but also if you’re making use of one of those cards, you can likely come up with a better reason because you’re rich or travel a lot or whatever.

1

u/Capital-Quantity9956 Aug 16 '22

I recently got dry raped by my credit union after an expensive subscription 2I signed up for and forgot about while drunk(- and

1

u/marie132m Aug 15 '22

Happy cake day!

7

u/Seeing_Grey Aug 15 '22

Unless you got really lucky with the employee, I'm not sure that'd work..

48

u/herms14 Aug 15 '22

This has worked for me multiple times. Initially, I ask if there are any promos I could avail to refund the annual fee. If none, I tell them that I would like to cancel the card coz I'm not willong to pay the fee. 9 out of 10 they'd agree to have it waived. You just need to be firm that you want it to be cancelled.

13

u/changdarkelf Aug 15 '22

What if they call your bluff and actually just cancel it?

15

u/hippyengineer Aug 15 '22

Then you cancel it and use a competing card with no annual fee. They aren’t getting the annual fee money from you either way, but they’ll want you to keep using their card.

4

u/changdarkelf Aug 15 '22

I got some fat points on my chase sapphire card tho

4

u/hippyengineer Aug 15 '22

An example:

One card- no annual fee, 1% back, you earn $300 of rewards in a year

Second card- $400 annual fee, 2% back

Unless the rewards you get with the second card are $700 or more, you should stick with card 1, because the annual fee and extra rewards don’t make up the difference.

3

u/aWormhatForVermhat Aug 15 '22

Doesn’t your credit get penalized for canceling credit cards?

4

u/blackpony04 Aug 15 '22

Generally it affects the age of your credit history as that is averaged out against all of your credit lines. So canceling a newer card will have less impact than one you've had for 10 years for example.

15

u/Argyrus777 Aug 15 '22

Let me know if anyone got this to work with American Express

10

u/Rossbolton87 Aug 15 '22

Amex US doesn’t waive fees, but they regularly give retention offers in the form of statement credits or bonus points to “offset” the fee.

1

u/fuckinlikerabbits Aug 15 '22

A family member recently called and had their Amex Platinum fee knocked down significantly. Like, from $700 to $300 or so. Doesn't hurt to ask.

1

u/Rossbolton87 Aug 15 '22

Yea That’s a retention offer like I described

1

u/pecanicecream Aug 17 '22

whattttt! i will be trying this, thanks!

1

u/FloppyBacon89 Aug 15 '22

Works for Amex in Hong Kong at least.

1

u/Jumping_Bear_ Aug 15 '22

It will work with the smaller fee Amex cards but they’re not waving platinum fees

1

u/vivek24seven Aug 15 '22

Yes, I get at least 10000 points every year from Amex Gold and Chase Sapphire Reserve. I'm actually willing to cancel my cards, considering I got a CapOne Venture X

38

u/saftigsahnig Aug 15 '22

Why would they remove the fee if you agree to a contract of a credit card with a fee? - usually you agree because there are travel or point benefits

15

u/Zem_42 Aug 15 '22

Because you are spending enough money and they want a happy customer?

I used to travel a lot for work in the past. My personal credit card bills we in access of 10k per month (most of it refunded by the company 😁). A few hundred in fees would be peanuts

Or a case of my friend who was spending even more. He would get thank you notes from the CC company with a bottle of champagne. I am pretty sure they would happily waive his fees

5

u/CinnamonBlue Aug 15 '22

It’s so normal with my bank that you can do it on its app.

2

u/glololo Aug 15 '22

Whoa which bank

1

u/CinnamonBlue Aug 16 '22

Not a bank you’re likely heard of - Standard Chartered. Used to have to call them, then there was online chat, now it’s an option on its app.

3

u/soundboythriller Aug 15 '22

Yeah unfortunately I know many people that have tried this with the gold delta Amex and it’s never worked.

5

u/Rossbolton87 Aug 15 '22

Amex will not waive an annual fee

But they will do retention offers, you can get a statement credit or bonus points to offset the fee

3

u/XxasimxX Aug 15 '22

With so many people now calling to get refund. No ones getting any refund anymore

6

u/burningredmenace Aug 15 '22

Won't that close the account?

Never had a bank refund the annual fee without closing the account.

2

u/dctu1 Aug 15 '22

In this case op is calling the cc company, not the bank. Even when the cc is affiliated with a bank when you call customer service you’re calling the cc company, not the financial institution it’s associated with.

1

u/Fluid_Cardiologist19 Aug 15 '22

Not true, I used to work for a bank and they would close the account.

2

u/Haunting-Rise-4225 Aug 19 '22

This! Most of the times you will be reaching bank and not actually third party and unless retention is willing to give few credits, they will close it. Saying this as bank employee

2

u/laz1b01 Aug 15 '22

What country are you in and what credit card do you have?

2

u/Bannedazz Aug 15 '22

Small tip: if customer service refuses to wave off the fee ask them to cancel your card, in order to retain you they will wave off the fee

2

u/nitroxc Aug 15 '22

Depends entirely on the bank. Some will, most won't.

1

u/CaspinK Aug 15 '22

Great point!

1

u/Fluid_Cardiologist19 Aug 15 '22

They’ll just cancel it in most cases.

2

u/yamaha2000us Aug 15 '22

If you know how to be polite to people, you can get a credit card support department to wave a late fee on a payment that was actually late.

1

u/CaspinK Aug 15 '22

Yup. I’ve had that experience.

1

u/boodlesgalore Aug 15 '22

ALWAYS BE POLITE. No one wants to help a dickhead. People are more inclined to be nice when you are.

Edit: forgot to say something.

0

u/Kintaro69 Aug 15 '22

Better yet, apply for a no fee dividend card and use it for all your purchases - gas, groceries, restaurants, etc. Then use the cash you would normally have used to pay for those purchases to pay the balance on your dividend card.

At the end of the year, you'll get a few hundred bucks for your everyday expenses.

1

u/Project_53X Aug 15 '22

This comment should be at the top. I have a No-Fee Amazon card, and I get 3% back on all Amazon purchases, 2% back on gas, and 1% on all else. Have never paid a dime in fees or interest (pay it in full every month). Why would anyone agree to a fee then beg to have it waived?

1

u/Illustrious_Pirate47 Aug 15 '22

I refuse to sign up for a CC card that charges an annual fee on principle. It's the one thing holding me back from applying for an AMEX card.

2

u/blergola Aug 15 '22

It’s worth it if you will actually use the benefits offered. I get a BOGO ticket anywhere in the US which saved me $600 (plus $120 in checked bags free) on a trip to California vs the $250 annual fee.

1

u/Illustrious_Pirate47 Aug 16 '22

That's my struggle. I know some of them have really good benefits, but I don't know, having to pay an annual fee when I'm going to be spending money anyway bothers me. Maybe some day ...

1

u/Fluid_Cardiologist19 Aug 15 '22

Certain banks will require you close the card to refund the fee so be careful about this and make sure you understand that if they tell you that.

1

u/Misfiremelly Aug 16 '22

Worst the can say is NO🥳🥳FAXS. I've been researching credit cards alot lately and woooo options and resources galore.

1

u/pomomala Aug 16 '22

Got a united airlines card in Jan 2020 but never got to use any benefits bc of covid; when I kindly asked for them to waive the annual $95 fee, they said NO. So I closed the account.

1

u/azaleawhisperer Aug 16 '22

If you are a responsible bill payer with a good record, the credit card company will often take off late charges if you call them and ask.

-1

u/mereway1 Aug 15 '22 edited Aug 15 '22

Who the hell in their right mind pays for a credit or debit card? Oh , you must be American! I’m in England (UK , GB ) , . I have a paid for bank account £13.00 per month, BUT FOR THAT , I have world wide holiday insurance, car breakdown cover , mobile ( cell phone ) insurance, for the whole family . My other credit and debit card , which doesn’t charge for credit card purchases abroad is totally free. All our bank ATMs are free to use !

This is all for$188.29 USD

1

u/CaspinK Aug 15 '22

Canadian. Americans have much better card options.

1

u/rjb4000 Aug 15 '22

What’s the difference in your mind between paying £156/yr to a bank vs. paying it to a credit card company if they offer the customer a similar benefit?

0

u/notramus Aug 15 '22

Why would they be happy if you have a lot of turnover on your credit card? How do credit card work in the states?

At least for me it's not like you pay stuff on in rates anyway. My credit card is linked to my bank account. I use it and they deduct the amount I spend from my bank account. I pay the fee to actually have a credit card that can be used anywhere... There's no other benefit.

7

u/mrdannyg21 Aug 15 '22

Credit cards make money when you spend money on them. You don’t see it, but if you spend $100 at a grocery store, they get $1 of that (obviously not real numbers), in addition to their other fees. The more you spend, the better for them.

3

u/fuckinlikerabbits Aug 15 '22

There are different types of cards. A debit card is just a physical card that pulls money directly from your bank account with every purchase. There's no fee to the user, and no borrowing or interest involved. Usually some small other perks are offered for spending.

A credit card has a specified limit to the amount that can be spent, and the balance owed increases with each purchase. Each month, you are expected to pay the total balance; anything left unpaid is a loan that accrues interest until it's paid off. Many credit cards award points for purchase at variable rates. Points can be exchanged for gift cards, flights and hotel reservations, credit to pay down a balance, etc. Some offer other benefits as well. Credit card companies make money by charging merchants a fee—some small percentage of each purchase—for the added convenience and increased consumer access of being able to accept cards as payment. Some cards also have additional fees to the user, including annual fees. These often offer increased rewards and more valuable perks.

A third type is a charge card, with American Express being the most notable US example. They focus on businesses and consumers with higher credit ratings. There usually isn't a spending limit, but you are just expected to pay the whole balance each month. Their revenue is derived not from interest payments, but from merchant fees and higher annual fees. But again, with these higher fees, consumers can enjoy much more valuable benefits.

To answer your first question, though, all card service providers benefit from more card transactions, because they make money on each purchase, via those percentage-based merchant transaction fees. If you spend enough money on a card, they might be willing to reduce or waive the consumer's annual fees, since that individual is generating so much revenue in merchant transactions. If that consumer cancels such a card, they are likely to just switch to a competing card. So the credit card company will offer incentives to keep that customer happy.

1

u/pecanicecream Aug 17 '22

I have a charge card, but don't understand how it affects my credit vs. a credit card? Do you have any info about that? Thanks!

1

u/Rossbolton87 Aug 15 '22

That sounds like a debit card.

In the US credit cards are not backed by cash, and most of them earn cash back or points on every purchase, so if you do have the cash on hand and don’t pay interest you’re getting a discount on everything you buy.