It’s always a great deal to sign up for a card with no annual fee for the first year, but what do you do when you’ve had the card for 11 months and that fee is about to show up on your statement?
Can you get a credit card fee waived after the first year? Is it ever a good deal to keep a credit card that charges you $65, $89 or even $450 dollars a year? The best answer to all of these questions is “sometimes.”
When an annual fee comes due on a mileage-earning credit card, it never hurts to call the issuing bank and explain that you want to keep the card but you don’t want to pay the fee. One of three things will then happen: 1) they’ll credit the fee for another year, 2) they’ll offer to “downgrade” you to a no-fee card, or 3) they’ll cancel the card for you.
Of the three, the first two are the preferred options, since there is no adverse effect on your credit score. If they do cancel the card, it’s still okay as long as you have good credit and haven’t been canceling a lot of cards all at once.
There is also the option to keep the card another year and pay the fee. In some cases we often choose to pay a fee and keep a card long-term because the benefits of annual cardmembership actually outweigh the cost.
For example, the American Express Platinum card comes with a hefty annual fee of $450, but it is actually one that pays for itself if you’re an international traveler. The card gives you an annual $200 statement credit that can be used every year on your choice of airlines, a complimentary Priority Pass to get you into more than 600 worldwide lounges (worth $399) and $100 credit on a Global Entry application.
Before you cancel a card to save the annual fee take a look at the credit card benefits you’re using and weigh them against the cost. If a card offers you a free high value hotel night every year or elite status that saves you on internet or checked airline bags, your annual fee may be paying for itself.
The Platinum Card® from American Express
- Earn 25K Membership Rewards® points after you spend $2,000 during your first three months of Card membership
- Premium travel benefits: access over 600 lounges worldwide when you enroll in Priority Pass(TM)Select, no foreign transaction fees
- Receive up to $200 annually in a statement credit with the airline of your choice to use towards baggage fees, flight-change fees, in-flight food and beverage purchases and more
- 24/7 Platinum Card® Concierge service for assistance with reservations, travel, gifts, and more
- Entertainment benefits: get Advance Tickets before the public and access once in a lifetime events with By Invitation Only®
- Terms and restrictions apply