How to waive a credit card annual fee
The world of credit cards is filled with options for every consumer, and annual fees reflect the benefits and perks various cards offer. You can get no-annual-fee credit cards; otherwise, fees can range from $95 to upward of $1,000.
If you own several credit cards, the annual fees can add up. If you believe you aren't getting the most value out of a card or don't wish to pay an annual fee, there may be a way to have it waived.
How to get a credit card annual fee waived
Not having to pay the annual fee on one or more credit cards can save you money. Here are some steps you can take to get an annual fee waived.
Set a calendar alert for the next annual fee
Your credit card annual fee is posted to your account on the anniversary of opening your card. For example, if your credit card account was activated in July 2023, your next annual fee will be posted on or around the same date in July 2024.
If you don't remember when your credit card annual fees are due, set a calendar alert on your phone or computer to remind you. Issuers are usually willing to make account changes, waive fees or provide offers regarding the annual fee within 45 days of the fee posting.
Call your issuer
The next step is to call your issuer using the customer service number found on the back of your card or your monthly statement. After verifying your information and identity, you can request a waiver for your annual fee.
If your issuer agrees, you're good to go; however, if it does not, you have other options.
Ask for a retention offer
If your card issuer is unwilling to waive the fee, it may be time to ask the representative about any retention offers on the account. Companies offer retention offers to retain customers' business.
When asking about a retention offer, it helps to use specific phrases, such as "I'm thinking of closing my account," or "I'm not sure if the annual fee justifies the benefits."
If you mention closing your account, be vague so the representative does not start the process of closing the account and instead offers to keep the account open if any offer is available on the account that would change your mind.
A retention offer may not always waive the fee, but it can offset it via a discount or points and miles if you can spend a certain amount of money within a set time frame (similar to welcome offers).
Related: Quick Points: How to use retention offers for extra points and miles
How likely is a fee waiver?
Your luck may vary from issuer to issuer when trying to have your annual fee waived. I have asked for a fee waiver in the past, and when asked for further explanation by a representative, I've been referred to retention offers available on the account.
I never request a fee waiver; instead, I ask for retention offers across all my credit cards.
Although it is possible to get a fee waiver, it's in the issuer's interest to keep you as a customer and provide you with a retention offer rather than waiving the fee outright. Remember that when asking for a fee waiver, your account must be in good standing, with no past-due balances or other negative remarks on your account.
How to avoid credit card annual fees
If you don't wish to negotiate your credit card annual fee or ask for other offers, consider the following ways to avoid the fee.
Military benefits
Some issuers, such as Chase and Capital One, recognize the Servicemembers Civil Relief Act. This benefit applies to active military personnel and their immediate family members. Benefits vary from issuer to issuer, but it could include waiving annual fees for credit cards.
For those who qualify for SCRA, call your credit card issuer to check which benefits apply to you. You may be asked to provide documentation proving your active duty status.
Related: The best credit cards for active duty military: Get waived annual fees
Card downgrades
If you're unhappy with your annual fee, you can avoid it by downgrading your card to a no-fee version within the same credit card family. Keep in mind that if your credit card earns points or miles, you may be unable to redeem them for travel or transfer them to partner airlines or hotels when you downgrade.
Related: Considering canceling your credit card? Here's why you might want to downgrade it instead
Choose a no-annual-fee card
If you don't want to deal with fees, consider a no-annual-fee credit card. There are two ways to do this: Select a credit card that waives the fee for the first year or choose a card that doesn't have an annual fee.
For example, the Chase Freedom Flex® (see rates and fees) has no annual fee and offers cardholders generous cash-back rewards.
Related: Best no-annual-fee credit cards
Bottom line
Annual fees are common with credit cards that offer enhanced benefits and rewards. If you feel your card's annual fee doesn't justify the benefits, call the issuer to see if it'll waive it, provide a retention offer or reduce it.
If that doesn't work, consider downgrading your card to another product with a lower or no annual fee. Regardless of your chosen route, remember to always weigh the pros and cons when opening a new credit card and understand how to maximize your benefits.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.