By Steve Dinnen
The annual fees for credit cards can range from easy, as in zero, to unreasonable, as in $500 or sometimes even more. When they get into the upper range, Kurt Adams of Going With Points, an online site that looks at travel incentives and credit card rewards, said he looks at the overall value the card provides and whether it’s worth keeping.
If Adams is on the fence about the card, he says, he’ll ask the card issuer for a retention offer — in other words, an incentive the company promises if you stick with them for another year. It could come to you in several ways. The issuer could waive all (unlikely) or part of the annual fee. It could award you bonus points or miles, which often come with a spending requirement. Or it could give you a statement credit, basically a rebate that would be paid after you pay your annual fee.
Credit card companies don’t advertise this, so it’s up to you to call them and make the request. They may or may not grant your request. But as Adams points out, you miss 100% of the shots you don’t take.
I’ve never asked for a rebate. But I have called a card company or two to request they lower their interest rate. Nowadays, many cards charge interest rates of more than 20% on unpaid balances, even for people with a top credit score. I’ve had some luck in this, though I have struck out a time or two. I once canceled a card when the company failed to grant my request for a lower rate. Sometimes you just have to play hardball.
