How To Check If I Am Eligible for An Annual Fee Waiver for My Credit Card?

How To Check If I Am Eligible for An Annual Fee Waiver for My Credit Card?

Credit cards offer an easy way to finance urgent expenses without resorting to any loan. It can either be an asset or a liability depending on how you use your credit limit. Most people opt for a credit card to finance immediate expenses that they can repay in the short term. It is best suited for short-term credit given the interest charges and other fees. Another reason why people opt for a credit card is because of its discount offers. Credit card companies have ties with many domestic and global brands that help them offer lucrative deals to users. The best credit cards also offer an annual fee waiver option. However, not all users are eligible for those cards. You must check your credit card eligibility before applying for one. Read on to learn more about the annual fee waiver for credit cards.

What is an annual fee waiver?

All credit card issuers charge a certain annual fee to users for availing of credit card services. The benefits offered by a credit card exceed their annual charges by a large margin. Some of the best credit card companies also offer an annual fee waiver option to users. It is offered to selected users who have reached a set benchmark in terms of spending. Suppose your credit card has an annual fee of INR 1000 and a fee waiver limit set at INR 1,00,000. If you spend over INR 1,00,000 using your credit card, you will get INR 1000 as a refund from the credit card issuer. You can also opt for a credit card with no annual fee in India if you are looking for an affordable alternative. 

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Why do users have to pay an annual fee for using a credit card?

There are many reasons why users have to pay an annual fee for using a credit card. The company issuing the card has to offer support services. They charge an annual fee to manage their operations. It helps to ensure that credit card users get the best services and their queries are addressed instantly. An annual fee is an important charge levied by credit card companies that help them to maintain the cards. The annual fee charged to users varies on factors such as the institutions issuing the card and features offered to users. Mostly, the silver and gold credit card variants have a lower fee as compared to the platinum cards.

Checking eligibility for an annual fee waiver 

How to check your eligibility for an annual fee waiver on a credit card? Follow the below-mentioned steps to check your credit card eligibility for a fee waiver in India.

  1. The first step in this process is to check the list of features offered on your credit card. In most cases, the annual fee waiver options come with a clause. It is generally related to your annual spending benchmarks. Most credit card companies set a benchmark limit between INR 75,000 to INR 1,00,000. 

  2. In most cases, once you have reached the threshold amount, the annual fee is automatically waived off and is credited into your account.

  3. To make sure that you meet the benchmark amount set by the issuer, you must make all your bill payments using your credit card and then pay the bill on time. Most credit cards offer lucrative deals on bill payments including travel, apparel, lifestyle, food, groceries, utility bill, etc.

  4. If you have spent the set limit and still see an annual fee charged to your account, you can reach out to the customer support team of the respective company to make sure that they waive off your annual charges.

  5. In case there is no annual fee waiver option offered on your credit card but you have spent a lot using the same, you can ask the customer support team to consider your case for an annual waiver. 

  6. You might get an annual fee waiver in this case but this depends on the discretion of your credit card issuer. If you have a long-term relationship with the organisation, the chances of getting an annual fee waiver are high.

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Tips to get a no annual fee credit card

Here are some quick tips to help you obtain a credit card that doesn’t charge an annual fee to users.

  1. Over the last decade, there have been many new players in the credit card industry. Consider all available cards that are promoting a ‘no annual fee’ option.

  2. Always consider the trade-offs associated with a ‘no annual fee’ card. You might get a credit card with a nominal annual fee that offers plenty of rewards. It is recommended to analyze and compare the perks.

  3. If a credit card comes with an annual fee waiver option after reaching a spending limit, you must check your past transaction to assess if you can spend that amount annually.