January 10, 2020

How Not To Pay (Or Decrease) Your Credit Card Annuity

Since its inception and to this day, credit cards have become a major means of payment for Brazilians. Despite the debts it can cause, there is no denying that it is practical, quick and easy to use for shopping; both in-person and online stores. It is also excellent for earning miles to issue airline tickets. However, many of these advantages come at a price; the annuity. On average, a credit card’s annuity costs $ 250, but it can exceed $ 1000. This worries (and even revolts) many users, after all, this price does not always seem fair or consistent with the quality of service they receive. .

But did you know that it is possible to get credit card annuity exemption (or a discount)? Learn now how to get out of your annuity card and why you should (or not).

 

Is it worth applying for your credit card annuity waiver?

apply credit card

If your credit card helps you save at other times, such as airline miles or giving you discounts at various stores, among other services, it may be worth paying the annual fee. However, if the benefits your card provides do not equal the annuity you pay, the best option would be to apply for an exemption or discount from the annuity.

Another thing to consider is that annuity is a cost that can go unnoticed for many, but you wouldn’t let anyone steal a little of your money every day without offering any justification in return, would you? Similarly, it is important to consider the annuity as any other expense is considered; One has to evaluate whether it is worth keeping or not.

 

The case of air miles

credit loan

Many people do not think of applying for an annuity waiver for the air miles they get when using their card, but remember that converting points to miles is usually only worthwhile when the cash flow on the card is large. . Let’s say a card converts from 1 dollar to 1 mile. With the dollar at $ 3.75 (at the moment), you would need to spend a little over $ 2,900 per month to have a satisfactory result at the end of the year.

In this case, it is quite likely that it is not worth paying the annuity just because of the airline miles. The best option would be to not pay the annuity or change cards to one that has no annuity.

 

How to get rid of your credit card annuity

credit card

Here are some ways you might be able to stop paying (or lower) your credit card annuity.

Negotiate with the bank

It’s important to keep in mind that talking directly to your bank is the best way to resolve any issues you may have with your card or any other services offered by your bank. For this reason, it is recommended to simply contact the bank. You can call the Call Center and negotiate the annuity value – or request an exemption from the comfort of your home. It is common for clerks to consider the order and give at least some discount to those who insist and do not give up.

Remember that getting a full credit card annuity waiver is a bit more difficult and is usually released for high-spending customers or people with premium cards.

But not everything is lost! Some good arguments for getting credit card annuity exemption are:

  • You spend a lot on your card a month and think it’s fair to have the annuity waiver card. Make it clear;
  • You are not making use of the benefits offered by the card, so you want the annuity waiver;
  • There are no annuity cards that offer everything your card offers; in this case, make it clear that you can change cards, but you are giving them a chance;
  • If you have been with the bank for a long time, make it clear that you are loyal and that you find it valid to be exempt from the annuity.

 

Contact the manager

Contact the manager

Talking directly to the manager can be helpful at various times in life including in cases like this. The manager understands better how to handle situations and may have a clearer picture of what can be done to help you.

Often the manager can lower the annuity and also increase the benefits offered to the customer. Worth the try! Be sure to make clear the relationship you have with the bank: investments, loyalty, contracted services, and so on.

 

Threaten to cancel

If the annuity waiver is really important or beneficial to you, it may be worth noting that you are considering canceling your card and migrating to another service. This may cause the bank to strive to keep you with them, thereby giving in to your request – at least partially.

 

Consider changing cards

change cards

For people who use the card a lot, it may be worth having plans like Premium, Platinum and so on, which gives them many advantages when it comes to airline miles, among others – which makes annuity not bothering them as much. . But for people who don’t use it that much, you may want to get a card that best fits your current financial reality.

Cards like RuBank or Pigio offer few benefits, but they also do not charge an annuity. This can be advantageous if you are not interested in using benefits or travel frequently and do not spend a lot of money. Especially for people who are in their early adulthood, simpler and no-annuity cards are the best options.

written by Patricia Remaley - Posted in Uncategorized

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