3 Credit Card Companiesof which 3 credit card companies
131st Facebook - linked in - Twitter; E-Mail; Print.
Benefit from the advantages of your card without having to pay the annuity charge.
They may think that the annuity of a credit card is not negotiable, but it turns out that they may have some leeway." So if you don't take advantage of your card for its full promise or just aren't willing to foot the bill, it's a smart thing to consider how you can get around it. "Try these techniques to prevent an yearly charge - or consider canceling the card.
Encourage the card publisher to forego the charge. The card publisher wants to bind your clients and may choose to forego the charge to make you feel lucky. "Call your credit card company, tell them how much you've spend so far and ask them to forego the fee," Birtles says. Every year, on your card, tell them about your good paying habits and just ask them if there's a way to forego the charge.
Reward to cover the cost. By earning cash back and spending it sensibly to maximize the advantages, you could make enough money to cover your card's annuity and still make a win. Some credit card companies have lowered their reward schemes since the European Commission's interbank charges bill was introduced, but some credit card reward schemes are still sufficiently large to consider this possibility.
The Santander 123 credit card, for example, has a £3 per annum charge, which is 36 per annum (although you can get the charge exempt for six months). There is 1% cash back for grocery up to £300 per months, 2% for grocery up to 150 per month and 3% for fuel and transport up to 100 per months.
By maximising your cash back, you can make 9 per cent per months in cash back - tripling the total amount of the cash back payment. In order for this to work, your cashback reward must fulfill or surpass the fee, Birtles said. "You have to be able to get paid all year round, otherwise there's no point and you should quit and buy a card that doesn't charge," she said.
Use the card only for the first free year. "Several credit card companies will seduce you with introducing offerings that waive their initial yearly fee," said Andrew Johnson, monetary advisor to the Money Advice Service, in an email reply to queries. "When you remove a card with one of these offerings, be sure to terminate your card before the first birthday if you want to prevent a charge.
These tactics can be particularly clever if you received the card for a particular purpose - for example, if you were interested in a handsome sign-up bonuses or if you requested the card to use a Trade Off transaction you made. As an alternative, you can change to a credit card free of charge after the first year.
Say, for example, that you register for the American Express Preferred Rewards Gold Card, which has a charge of £0 in the first year, but a charge of £140 thereafter. When your year expires, you can switch to the American Express Platinum Everyday Card, which still brings you cash back but is free.
Note, however, that a downgrade may lead to fewer chances for awards or other advantages. "As Johnson said, the more advantages your card provides, such as award points, airline mileage, or free health cover, the higher the annuity. Try to get the charge remitted one last or two times by saying that you will terminate the bankroll if you have to use it.
"In other words, it's a deal-breaker if they don't - then go straight to the cancellation section and declare nice that you'd like to stick with them, but the charge is the sake of why you want to go," said Birdes.
Please try this to make your position clear without being aggressive: "I'm considering canceling my credit card because I can't afford to be the one to pay for it. Each year I spends GBP EX on my credit card and am a pattern user. "If you still don't move, you have two choices: either make payment or reverse.
"When they don't move, you can go to a card that doesn't charge," said Bird. Be aware, however, of the possible implications of canceling a card without considering them. An important portion of your creditworthiness is determined by your credit utilization, the percent of available credit you use on all your credit card accounts.
But if you reverse a card, your share is now 50%. You must also fully repay any debts on the card before you can terminate it, so your menace may be empty if you cannot repay it.