Photo by Evelyn Semenyuk on Unsplash

I cannot stand when a credit card has an annual fee. Credit card companies are already raking in the dough via interchange fees they impose on businesses in order to process any card transactions along with the outrageously high interest rates they charge cardholders. They have the nerve to tack on a yearly fee for the “privilege” of using their flimsy little debt-makers? I don’t think so.

When I saw that one of my credit cards was approaching its annual fee due date (i.e. the end of its “no annual fee for the first year” deal), I took a deep breath and thought of Bobby Hill from the show, King of the Hill. Specifically when Bobby learns the effective protection technique of shouting “That’s my purse! I don’t know you!” before delivering a swift kick to the crotch of his assailant, rendering them powerless.

I followed these exact moves (metaphorically) to get my annual credit card fee waived and so can you. Let’s break down how it’s done.

Call your credit card issuer

First things first, you’re going to need to call the issuer of the card to tell them you don’t want to pay the annual fee. An issuer is easily able to charge an annual fee to your credit card (so yes, it is part of your balance and something you have the potential to pay interest on), but you need to put in the extra effort of picking up the phone and getting them within hearing distance to stop them and declare, “That’s my purse!”

A slightly less aggressive version of this announcement may be, “Hello, I have the [credit card name] and see that it is scheduled to be charged an annual fee. I would like to request that this fee be waived.” You’ll want to call them prior to the fee being billed. This way, you have time to weigh all of your options in case they decline your request. Additionally, if they tell you that nothing can be done about the fee until a later date, you can request that they make record of your having contacted them about it so you have extra evidence for when you call back.

After dialing my credit card issuer’s customer service line and escaping their automated phone menu maze, I stated the above to a representative. They informed me that only their supervisor had the ability to waive fees and immediately redirected me to the appropriate party. They cut me off mid-sentence to make the transfer and I hope whoever you speak to has this same speed and efficiency.

Make your case

It’s time for “I don’t know you!” You don’t know the credit card company and they don’t know you, but they’re about to.

Depending on your card usage history, your specific arguments may vary, but some examples as to why an annual fee should be waived are:

• You make your payments on time.
• You are a loyal customer/have a long record of doing business with the company.
• You have a high usage history of the card.
• You do not have a high usage history of the card, but want to start using it more (an issuer might agree to waive the fee or credit its cost to your card provided you charge a specific dollar amount of purchases in an allotted period of time).
• There is another credit card providing the same benefits for no annual fee (make sure you have the specific details and proof of said card).
• The annual fee is too large of a percentage of the card’s credit limit to justify (for example, the card charges a $95 fee, but the credit limit is only $500, [almost 20% of the credit limit]).
• Terms or benefits of the card have changed since your account was opened (again, make sure you have the specific details and proof).
• You are an active duty member of the military (some credit card companies do not charge annual fees to anyone serving in active-duty).

I used the below justifications for why my fee should be waived:

• I am a loyal customer (I have been a customer of my card issuer for more than 2 years, have multiple credit cards with them, and at the time, also had a checking account with them).
• I have a history of making my payments on time.
• I used the card frequently in the past few months (it was my go-to card for flight and travel purchases, so they were pricey).
• Terms of the card had changed. Starting in September of 2024, the card no longer has an annual fee (if you are a cardholder of the U.S. Bank Altitude® Connect Visa Signature® Card, I highly recommend requesting your upcoming annual fee be waived if due prior to September 9, 2024. If you paid an annual fee for the card within the last ten months, see if it can be credited to your account in its entirety or as a pro-rata amount).

I began with what I believed to be my strongest line of reasoning: the terms of the card had changed and soon it would have no annual fee. My yearly fee of $95 was to be paid in July, so if charged, the company would be making me pay a 12-month fee for a 2-month period.

The representative said they understood my concern and took a look at my account. They commented on my card usage, stating that I did not seem to use the card much. I clarified that my balance of $0 on the card was because I recently paid it off, but I had a heavy history of usage in recent months. They confirmed the same and then informed me that they would put a note on my account to not charge the annual fee. Because the system was scheduled to automatically charge the fee in July, they explained that I might see it on my account when the next billing period started, but that if it was not removed soon after, I simply needed to call back and they would rectify things.

Hooray!

Finish them

This Mortal Kombat order of destruction sounds aggressive, but I’m aiming to convey a symbolic demolition kick to the groin of your credit card company.

After speaking with my credit card company, the scenario the representative predicted would happen did indeed happen. A charge for the annual fee showed up on my card at the start of the next billing cycle and two days later, it magically disappeared. Ideally, after you talk to your credit card company and request the fee be waived, they agree and you too are off to a blissful life without annual fees.

There is, however, a chance that they reject your proposal of a fee-free credit card existence.

This is where the kick comes in. If the issuer declines to waive the annual fee, it does not mean you have to call it quits and walk away with the charge. They might be thieving your purse, but they’re going to feel the consequences of doing so.

If they won’t ditch the annual fee, ask what alternatives the company might be able to provide in order to retain your business and continued usage of the card. Their offers might include bonus points for spending a certain amount or raising your credit limit on the card (though requesting to raise your credit limit is something you always have the ability to do, so isn’t much of a retention move in my book).

Consider their proposals and do what is best for you. If you don’t feel they justify paying the annual fee, inquire if it is possible to convert your current card into a different one of their fee-less cards that suits your needs. This should allow you to avoid the fee, transfer your current card’s credit limit to the new card, and prevent a hard inquiry on your credit report. It might make you lose your previous credit card’s existing points or rewards, but ask if they can be retained and confirm the exact implications of a card switch with the issuer.

If none of the above works out, you can always close the card and say “goodbye” to escape paying the annual fee. This does impact your credit, so make sure to do so as strategically as possible. You can read my article about how to close a credit card while also protecting your credit score here.

Don’t get bullied by annual credit card fees. Embrace your inner Bobby Hill and remember that’s your purse, you decide who gets money from it.