Last Updated: April 21, 2019
I love shopping through credit cards because I receive deals, cashback and reward points.
I got my first credit card in 2006 when I joined my first job as a fresher. It was lifetime free ICICI Gold Credit card with credit limit of 50,000. That was the second best credit card of that time, followed by ICICI Platinum card.
Due to my regular usage and excellent payment history, ICICI upgraded my card to platinum card within a year.
ICICI offers Platinum card to anyone who have 3L annual income or keeps a fixed deposit in ICICI bank – The card is still free for life time.
There are very few credit cards left without annual fees. Most of the cashback credit cards have 499 to 999 annual fees and all the premium credit cards have annual fees from 3000 to 5000 per year.
Also Read : Best No Annual Fees Credit Cards in India
We love credit cards with no annual fees – and banks love customers who spend regularly on credit cards.
In my experience, you can get your annual fees waived off by the bank if you spend around 50,000 per year through credit card (the amount varies with bank to bank)
Some banks mention the amount on application form that you must spend within a time frame to get waiver on annual fees.
- SBI Simply Save (& Simply Click) waive off annual fees of 499 on spending 75K to 1L amount annually
- HDFC Moneyback Card waive off annual fees if you spend 50K per year
- Citibank Rewards Domestic Credit Card waive off fees on spending 30K per year
You can find the waiver criteria of each credit card on their websites. Banks do not mention any waiver condition for the premium credit cards.
I never paid annual fees even on premium credit cards like HDFC Regalia (and my favorite credit card Standard Chartered Manhattan).
The reason is simple, I use both of my credit cards for shopping online, groceries, travel and dining.
I redeem my rewards for getting e-vouchers for Amazon and Flipkart.
SBI and Amex are known for not waiving annual fees, but you can try the following method if you have any annual fees credit card.
If you are regular travel then you must have one best travel credit card in India. which offers free airport lounge access on credit card.
Waiver of Annual Fees on Credit Card
Banks charge annual fees every year but I use following procedure as I see the fees in my statement.
- Call up bank’s customer care number and verify your account information.
- Say politely, “I saw annual fees on my credit card statement and wondering if that can be reversed?”
- In most of scenarios the executive will put you on hold to check your card information (actually to see your spendings on card and payment history)
- In rare cases, if they say that as per their policy the fees can not be reversed, then you should say, “Okay, I understand that. But I have been using this card regularly and paying the due amount on time. Would it be possible for you to take waiver request or check with your seniors if they can approve the waiver?”
- When you say you have used card regularly and paying on time, you must mean it. If you are not using the card on regular basis, they will not reverse the fees.
- If the executive stays adamant for not reversing the fees, then don’t argue with him. Hang up the phone, call again, and explain the same thing to next person. Trust me, it works. If you stay calm and explain in friendly manner, they will reverse the fees.
- In case of no luck, that only happens when you have not used the card much during the year, you still have chance to get fees waiver.
- Tell them that you have another card with similar benefits and ask for the account closure.
- In few days, you will receive the call from their retention department. They will definitely waive off your annual fees to retain you.
- Frequently Asked Question: What if they close the account without reversing fees? Answer: They have to reverse the annual fees if they are closing your account. The annual fees is advance fees for upcoming year, if you are not going to use card for next year then they will reverse the fees.
Important Note: Credit card companies spend a lot of money on marketing to acquire new customers. They never want to lose their customers for little issues like annual fees or joining fees. They always make money when we use credit cards for shopping, so they are more willing to keep you as their customer.
You may also like to read – Best credit card for fuel in India
Waiver of Late Payment Fees on Credit Card
I recommend you to always pay your credit card amount before due date. Credit information bureau company CIBIL collects your loan payment information from all banks. Any miss in payment can impact your credit score and spoil your credit history. You will face difficulties in approval of loan in the future.
However, in some rare incidents late payments happen. It could be due to issues with bank when you pay by cheque or you forget the due date.
It happened with me few months back when I scheduled payment through net banking and it got canceled automatically. I came to know about it when I saw late payment changes in my credit card statement.
I immediately called customer care and requested for waiver of late payment charges. I was more concerned about my credit history than late payment charges.
The bank reversed my late payment fees after seeing my excellent payment record of past months.
If you maintain good relationships, the banks will also co-operate with you.
I incurred some interest charges as well because I have not paid my dues on time.
Waiver of Interest Charges on Credit Card
I would not have asked for waiver of interest charges but the amount was pinching me. It was my mistake of not paying on time even when there was issue at my bank’s netbanking.
I asked if my interest charges can be waived off, they denied my request. I thought it’s okay to pay interest charges because bank has already refunded my late payment fees.
But I had to call bank next week to activate international use because I was travelling to Thailand for 2 months. After card activation, I requested again for waiver of interest charges.
The customer care lady was very friendly, this time, she took my waiver request and forwarded to concerned department.
It worked! I got waiver of my interest charges.
Final Lesson
Maintain a good relationship with bank. Use your credit cards regularly and pay your dues on time.
Read my detailed review for Standard Chartered Manhattan Card, they provide a great customer service, cashback and reward points.
You will always be saving more money. Happy smart spending!
I have used the same trick on my credit card and got waiver of the annual fee. You have explained the concept very nicely. Thank you Pradeep
Thanks Arun. What else would you like to read in the future?
You have explained the concept very nicely. Thank you Pradeep.
Spending few hundred thousand rupees just to get a waiver of 499 or 5oo rupees…!!#
Its a given that ic one has excellent payment record ny CC company will waive off a one off late payment or ibteredt fees…
We are not spending thousands of rupees to get waiver of just 500 rupees. We are trying to optimize the card where we get most benefit by spending money.
Anyways, we have to spend money on shopping. Why not to spend in a smart way by using the best credit card.
Hi pradeep,
I used the same technique with SBI card and it worked. You are right when we learn to use the cc in a smart way it can really benefits you.thanks for sharing the excellent tips.
Glad to know that the tips worked for you. Wish you a lot of savings and earnings in the future 🙂
Hi,
Great article. I also want to get a credit card but cibil score scares me. This is because I have heard that non payment in credit cards due to any reason also lowers down your cibil score. Is that true?
You should own credit card for improving your credit score.
Non-payments hurt your credit history and score.. you must pay in time. If you fail to pay for genuine reason, then ask to waive off charges and your score will not be impacted. Banks report to CIBIL authorities every month.
Your score will improve if you use your card regularly and pay-in-full before due date.
Dear Pardeep,
Is it possible to have waiver for annual fees and Debit interest waived at one request? Have you come across any such experience?
They will waive if you have a genuine case.
Pradeep, A great initiative from your side. I am hooke up to your blogs…
I have a query. I have heard of Credit Card limit to be used only till 30% for a good CIBIL score. If I have to use a higher limit, then will it work, if I prepay the amount before billing cycle. So that the statement generated at end of billing cycle is less then 30% of card limit?
Hello Pardeep Sir,
Very Informative Post. I have used the technique mentioned in your article. My Axis Bank Credit Card Annual Charges Reversed.
Thank You Very Much.
I want to know, which are the mobile wallets in India which allows me to fund the wallet by credit card for free of charge and then which are the mobile wallets that allows to transfer money from wallet to bank account free of charge ?
Hi Pardeep, can they waive off the 2nd year card fees once the charge is shown in the new statement? Also If I submit a closure request for the card now, will they refund the charged amount?
Answer to both of your questions is “YES”.
They would waive fees based on your last year’s expenses. Just call them and check.
Hi Pradeep,
I have a Simply Save SBI Credit card which I haven’t used for nearly 2 years. Just few minutes ago, I logged online and saw an outstanding balance of 5k plus which only had annual fees and late payment fee and other financial charges associated with the annual fees only. The last time I used this card was 2 years ago, Oct 2016 to be specific, and then paid the outstanding in full with .19 rs charge left which they reversed and did not consider. However, in June 2017, they charged the annual fee and as I had no clue about it, it kept on accumulating to this date. Is there a way I can get the late charges reversed and just pay the annual fees of two years to them? How to go about it? Also, they have obviously blocked my card. I intend to pay but this is just absurd that they charge so much of late payment fees. I used to be a regular payee, paying well in advance before the due date when I was actively using the card. Do I have a chance for any reversal of charges? Thanks and regards.
Hi Pradeep
Very good idea shared. I wanted to know if this works for making your card lifetime free or only for that particular year’s fee? Actually I have Citibank Rewards card and that is on spending basis annual fee, if to the customer care, I say that I want to close my card, will they waive my cards fee for lifetime?
Very well explained..
Hi,
I have got Annual Fees Statement with SBI Credit Card Simply Save, I have reported Customer Care regarding lost of Card. and not reissued again, the Statement came with including of annual charges can we waived off this Annual Charges any way,,,
please help
Thanks. U explained it in very simple way. I’m feeling lucky.