This 1 question could save you a lot of money as a credit card holder
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The longer you have a credit card open, the more leeway you have as an account holder, especially if your account has always been in good standing. Credit card companies like to retain their customers and often make concessions to keep customers around.
It is for this reason that you should not hesitate to tell your credit card company what you need. If you want to save money by being a cardholder, there is one key question that you might really pay to ask yourself.
Are you going to waive my annual membership fee?
Not all credit cards charge an annual fee, and among those that do, those fees may vary. You can pay as little as $ 95 per year for a given credit card, or your fees can be $ 250 or more.
Typically, annual fee credit cards offer certain reward programs or benefits that are worth paying the fee. If they didn’t, consumers wouldn’t shell out that money when it is possible to get a credit card at no cost.
Still, there may come a time when you are fed up with paying annual credit card fees. And if you’ve had this account for a while, before canceling it, it’s worth contacting your issuer and requesting your annual fee waived.
Will your credit card issuer agree? Well it depends.
Your issuer may consider factors such as how often you use your card to determine whether or not they will waive your charges. But if you can get your transmitter to waive your fees for even a year, it could give you a nice amount of money back.
Why not just cancel an annual fee credit card?
If you determine that a card’s annual fee is no longer worth paying, you can simply cancel that card and be done with it. But canceling a credit card could have a negative impact on your credit score.
An important factor that goes into calculating this number is your credit utilization rate, which measures the percentage of your available revolving credit that you are using at a time. If you cancel a credit card, you will lower your total credit limit, which could push your usage rate up into unfavorable territory. The result? Unwanted damage to credit score.
In addition, the length of your credit history is taken into account when calculating your credit score. If you close an annual fee credit card that you’ve opened for many years, it could lower the average age of your existing accounts, which in turn leads to a drop in your score.
It is for this reason that it is usually worth asking for the annual fee waiver before rushing to close a card that charges one. The worst thing that can happen is you call your credit card issuer, apply, and you are told no. You really have nothing to lose and a lot to gain from speaking out.
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