I have several credit cards for both personal use and my business. I like using credit cards for several reasons, such as better customer service, fraud protection, and the perks (cash back, points, and miles).
In fact, I can use points to take my family on a trip every year, which is a smart way to save money. I can also use the cash back from one of my cards to fund my kiddos’ 529 college account, so my credit card is paying for a portion of my kids’ college. What?!!
That said, I don’t like paying the annual fees. But here’s the thing-I’ve found a secret hack that puts me in control. Would you like to know it?
It’s really pretty easy…I just ask.
Here’s what I typically say when I call:
“Hi, I noticed I was just charged an annual fee. I don’t know… I don’t use this card a ton. I was wondering if you could waive the fee?”
Then I pause and wait.
Nine times out of ten, they’ll say, “Let me see what options we have…”
Spoiler: they usually have options.
Sometimes they offer to refund the fee on the spot. Other times, they suggest downgrading the card to a no-fee version. And honestly? I usually don’t mind that.
But if I do want to keep the benefits of the current card, I say:
“I like the perks of this one – it fits my needs. I’d be happy to keep the annual fee if it weren’t for the annual fee. Any other options?”
It’s almost like a magic trick, but it’s not. It’s the result of being proactive and taking control of my finances. And when that refund appears, it’s a small victory that feels great.
Now, this doesn’t work every time, and that’s okay. If they won’t work with you, you can evaluate whether it is worth keeping that card.
Keep in mind that credit card companies make money from various sources. They charge the vendor a percentage of every sale, and the customer pays annual fees, interest, and late charges. Once they have you as a cardholder, they really don’t want to lose you. The trick to beating credit card companies is not to pay annual fees, interest, or late charges.
Here’s the point I hope you’ll take away from this:
Credit cards are a tool. They’re not evil. They’re also not a magic wealth-building machine.
They can be incredibly useful – if you manage them intentionally.
And that’s the key. This strategy only works because I’m organized with my money. I track my cards, I know the perks, and I check the charges.
And I’m not afraid to make a phone call.
When you use credit cards, you’re not just signing up for points or perks. You’re also signing up for a certain level of responsibility. But here’s the thing-that responsibility puts you in the driver’s seat of your financial decisions.
So here’s your tiny homework for today:
Go check your credit card statements. See when your next annual fee is due. Pop a reminder on your calendar to call. You might be surprised by what they’re willing to do—just because you asked.
Good luck!
