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How to Get Rid of Your Credit Card's Annual Fee?

How to Get Rid of Your Credit Card's Annual Fee?

Sponsored Post | @indiablooms | 29 Jan 2020, 07:30 am

According to reports from last year, the end of the previous year recorded 44.2 million active credit cards in circulation across India. The original spike in credit card users began after demonetisation in India when high-value currency notes were temporarily unavailable. With a rise in the number of credit card users, different types of credit cards were also introduced by the financial institutions.

While it is essential for potential users to underst and how to get a credit card, they should also be aware of the numerous charges which come with these financial products. Furthermore, it is vital for every user to also learn different methods which they can use to get rid of their credit cards’ annual fee and other charges. While very few credit cards are offered which do not have any annual fee, most credit cards have a fixed yearly charge which must be paid by the users.

In case of cards like the Bajaj Finserv RBL Bank SuperCard and others, there are many variants. Consequently, these different variants also have their specific charges, especially annual fees. Additionally, interest charges can also be levied on these lines of credit in case a user does not make timely repayments.

Typically, there are numerous advantages of credit cards, some of which can be used to remove the annual fees as mandated by users. These advantages and options offered by different financial institutions are discussed in detail below.

Spending milestones

There are certain spending milestones which are offered by different financial institutions. Users who can meet these spending limits are offered multiple benefits, including the option to have their annual fee waived. Of the different advantages of credit cards, this is especially helpful since effectively users do not have to pay anything for this financial tool if their annual fee is waived. Customers of credit cards should plan their finances to reach this limit and reduce their expenses.
Reward points for fee payment

Users considering how to use a credit card wisely should consider using their reward points for annual fee payment. Note that waiving off the annual fees with reward points is always subject to accumulation of a certain amount of these points within a specified time frame. The annual fee is credit nonetheless in the first statement. However, if the mentioned reward points are accumulated, the user will be eligible to cashback equal to the annual fees.

Typically, these reward points can be used to avail different discounts and rebates or exchanged for gifts and vouchers. Credit card users can also choose to avail cash-back offers on these reward points and use them to repay their credit card bills.

It is important for users to understand how to utilise their reward points as much as it is important to understand how to get a credit card. It is the option to avail these features which make it a more lucrative financial tool than debit cards.

Avoid other charges

There are many types of charges which can be levied on credit cards along with the annual charges.

● Cash advance fee: Withdrawal of cash from ATM using a credit card and not repaying the amount in time leads to this charge.
● Finance charge: For individuals clearing just the minimum balance, the additional amount accrues interest on it known as a finance charge.
● Foreign transaction charge: This charge is levied for transactions in foreign soil.

While the annual fee varies from one credit card to another, effectively utilising all the benefits can make its payment easy. Much like the selection of the right card before going into how to get a credit card, users must also plan their fee payment based on spending habits. The procedure for repayment is typically easy like the application procedure offered by different issuers.

Credit card issuers like Bajaj Finserv even offer pre-approved offers which make it easier for users to apply. Pre-approved offers are available on many types of financial products like credit cards, personal loans, business loans, loans against property, etc. You can easily check your pre-approved offer by providing personal details which include your name and phone number.

After understanding how to get a credit card along with different methods of avoiding annual fee and other charges payment, it is vital users also learn safety measures. Learning of the different ways to protect a credit card from being hacked is essential to keep the credit account safe from fraudsters and thieves. This includes different methods, including safekeeping of credit account details along with meticulously checking every credit statement at the end of the cycle.