How to Waive your Credit Card Annual Fee

A credit card provides several benefits, including the ability to make purchases quickly, an emergency line of credit in case you need it, and access to perks and incentives that are only available to cardholders. However, the associated costs deter a large number of individuals from opening a credit card account.

The annual credit card charge is without a doubt one of the most inconvenient costs that credit card users must bear. This is a recurring price that we have to pay each and every year.

Sometimes, it even lets you wonder why do we have to pay an annual fee in the first place.

Well, the simple answer to that is we are being charged for it just because "we're using the credit card." In other words, it is like a "membership fee" that we have to pay in order to use the card and continue to profit from its features.

But do you know that there are methods to avoid having to pay the charge each year, which is a real bummer? As a matter of fact, there is no harm in checking with your bank to see if there are any account retention options before the fee is imposed.

How to get your credit card's annual fee waived

We know that paying your credit card's annual fee can be really annoying that's why we collected some of the ways in which you could have them waived!

You may avoid paying the credit card company's yearly membership fee in any one of these options that we have outlined below. Try one of these tried-and-true methods to get started although there are times that it might not work. But for those of you who were successful in getting your annual charge waived, then welcome to the club!

Method No. 1: Make a phone call to your bank and request that your credit card annual fees be waived.

Many credit cardholders are not aware that they may simply phone their bank or credit card provider and request that the yearly membership fee for the card be waived.

For BPI Credit Card Holders

After receiving your monthly bill, make sure to immediately phone BPI's helpline to request the annual fee to be waived. When negotiating, it's important to be nice and respectful, so don't become angry and don't cuss the customer service representative on the other end of the line.

As it happens, whether or not your waiver request is approved is determined by your credit history and the amount of time you have been actively using the card in the past. BPI will usually allow your request if you're an active cardholder. Assuming you've been evaluated as a customer in good standing by checking your monthly credit card use and payment history, they'll normally waive the cost.

Sometimes, they even based it on how much your credit card spending was in the previous three months. Usually, they require you to have a minimum credit spending in order for your credit card's annual fee to be waived.

However, the remission of yearly fees is not available to everyone. Most banks usually look at a cardholder's buying habits, credit score, and even payment default history when determining credit limits. There is a greater possibility that your request to waive your credit card's annual fee may be refused if you have repeated failures to pay monthly or cumulative financing charges throughout the years.

For Citibank Credit Card Holders

Citibank gave automatic eligibility to receive the annual fee waiver in 2021 although we're not sure if they will carry it for the succeeding years.

Method No. 2: Notify your bank that you want to cancel your card.

If the first approach fails, threatening the bank with the possibility of canceling the card and using one from a rival may compel them to relent and waive the annual fee in exchange for your possibility to cancel your credit card with them.

It is understandable that they would want to maintain you as a client, and they may compromise in order to do so.

In this way, you may explain that the annual fee is a major factor that lets you consider switching providers. A good reason to claim you're thinking about switching to another credit card is that this one will eliminate your annual fee.

In doing this, make sure to tell them that you would really like to continue using their credit card but their annual fee makes you feel annoyed to use it that's why you decided to switch to another bank since they are offering you a waive of the first year’s annual fee.

You can also tell them that the bank you're switching to has benefits and rewards similar to their credit card which is why you're thinking to cancel your card.

Lastly, make sure to ask if they currently have retention offers that you can consider before you make the decision in canceling your credit card with them.

According to research, acquiring new customers is expensive for companies while retaining existing ones is more lucrative. As such, they'd be unlikely to let you leave for free, particularly because keeping you as a client is advantageous for them.

In order to keep you as a customer, they may offer to waive the annual charge on your card as a gesture of goodwill. This method might work or might not work because just like in our Method No. 1, they do a background check first on your credit and see if they can earn money from you.

Again, a strong ability to negotiate is essential. It's also possible to use the fact that you're anticipating a large credit card purchase in the coming few months as leverage. As a rule, don't exaggerate the likelihood of a purchase, or make criteria that you can't satisfy. In order to avoid being taken in as a ruse, it's critical that you make it known that you want to cancel the card.

You can do this by not just merely explaining why you no longer want to use the card in a straightforward and concise manner and don't just simply mention the annual fee. You can also mention that certain terms and conditions changed, such as the conversion rate for points or rewards got greater, or that you were dissatisfied with customer service since it took you several minutes to call Customer Support when you noticed fraudulent activity on your card.

If they don't realize that they're losing a client, then you need to tell them. To entice you to change your mind, they may react with retention incentives, such as having your annual fee waived.

Again, only use this option if you're prepared to follow through with the cancellation in its current form. Because if you don't, the credit card company might call your bluff, ask you to pay and settle all unpaid balance, and shut your account.

Method No. 3: Look for a credit card with a "No Annual Fee" or a "No Annual Fee For Life" guarantee.

Credit card issuers charge their customers an annual membership fee for using a credit card as a convenient means of making purchases. For the most part, this is the fee you pay to use your bank's credit card service.

You'll save money by using credit cards that don't have an annual fee, which is the most obvious advantage. You should be aware that yearly costs might vary from PHP 1,000 to PHP 5,000 and even more. And you may save the money that would have gone to this charge.

It's easy to get overwhelmed by the sheer number of no-annual-fee credit cards available today. So make sure to adopt a decision easier by keeping these two points in mind:

1. Your Lifestyle

The place where you'll be using your credit cards is important. Will it be for utility bills, everyday costs, or travel? Make sure you choose a credit card that fits your needs and lifestyle before signing up.

2. Monthly income

No annual fee credit cards are often restricted to those who earn at least a certain amount each month. To be eligible to apply for one, you must ensure that you satisfy this requirement.

Also Read: How to Qualify for the Credit Card Amnesty Program in the Philippines

Once you have already considered these two important factors, you are now ready to discover the banks which offer no annual credit card fee. Finding a bank advertising with a no annual fee credit card simply implies that the bank waives its annual membership costs and no-annual-fee credit cards often fall into one of two categories:

LIMITED ANNUAL FEE WAIVER

If this is the case with your card, you may be able to avoid paying the annual fee for a short time, generally a year. However, there are still banks that provide a three-year waiver. After that time, the standard yearly cost will be in effect. To avoid the yearly charge, you may be obliged to spend a certain amount of money over a certain period of time.

Below are the credit cards with no annual fee promo or only have a limited time annual fee waiver:

Citi Rewards Card

Are you looking for a credit card that allows you to earn points for every purchase you make? Try the Citi Rewards Credit Card! You may receive one (1) reward point for every PHP 30 spend on online shopping and meal delivery. With this card, you may earn points that never expire and spend them whenever you choose!

Key features and benefits

• 50% discount on partner hotels, resorts, and airlines

• 3x points on shopping and dining transactions

• Non-expiring points

Fees and charges

• Annual fee: Waived for the first year

• Annual fee without the promo: PHP 2,500

• Cash advance fee: PHP 200

• Interest rate: 2%

✅ This is ideal for shoppers and reward seekers and with a minimum monthly income of Php 15, 000 if you have another credit card and Php 20, 833 if none.

PNB-PAL Mabuhay Miles NOW Mastercard

It is a common misconception that collecting frequent flier miles is solely for the well-off. A modest monthly salary is no barrier to earning Mabuhay Miles due to the PNB-PAL Mabuhay Miles Now Mastercard for frequent fliers. Free travel insurance is also available when you pay for your whole vacation on a credit card.

Key features and benefits

• 1,000 Mabuhay Miles welcome gift for new cardholders

• 5% discount on select PAL international flights booked online

• Earn 1 rewards point for every PHP 65 spent

• Up to PHP 250,000 purchase protection insurance coverage

• Up to PHP 1 million travel insurance coverage

• Waived annual fee for three years

Fees and charges

• Annual fee: Waived for the first three years / waived for life for supplementary cards

• Cash advance fee: PHP 200 or USD 5

• Foreign currency transaction fee: 2.50%

• Interest rate: 2%

• Late payment fee: 7% (Peso) or 5% (Dollar) of the unsettled minimum amount due

✅ This is ideal for loyal PAL clients and with a minimum monthly income of Php 10, 000.

RCBC Flex Gold Visa

Your three selected reward categories, which include groceries and travel and home appliances and gas, may be rewarded twice as much with the RCBC Flex Gold Visa. Even once a month, you may swap between your favorite categories. Additionally, you will get reward points for all of your other transactions made with the credit card.

First-time cardholders who complete the spending criteria within two (2) months of card issue will get free membership for life as part of the RCBC Bankard's Free for Life offer.

Key features and benefits

• 2x rewards across three categories

• 0%  installment on purchases abroad

• Access to luxurious, world-class airport lounges

• Free travel insurance and purchase protection for international travel-related needs

• Unli installment, which converts your straight purchases to an installment plan of up to 36 months

Fees and charges

• Annual fee: Waived for the first year / waived for life when you join RCBC Bankard’s Free for Life Promo until December 31, 2021

• Foreign currency transaction fee: 3.5%

• Interest rate: 2%

• Late payment fee: PHP 850 or USD 17 or the minimum amount due, whichever is lower

• Overlimit fee: PHP 600 or USD 12

✅ This is ideal for those who want to maximize their rewards and with a minimum monthly income of Php 50, 000.

RCBC Flex Visa

The RCBC Flex Visa, like the previous RCBC credit card, offers users the opportunity to earn 2x rewards in the areas they want (but only two this time). These include food, clothes, travel, and transportation, although the categories are generally lifestyle-centric.

When you sign up for RCBC Bankard's Free for Life campaign, your yearly cost is eliminated for life. As long as they spend the required minimum amount within 60 days of receiving their card, first-time card applicants who are accepted will have free membership for life.

Key features and benefits

• 2x rewards across three categories

• 0%  installment on purchases abroad

• Access to luxurious, world-class airport lounges

• Free travel insurance and purchase protection for international travel-related needs

• Unli installment, which converts your straight purchases to an installment plan of up to 36 months

Fees and charges

• Annual fee: Waived for the first year / waived for life when you join RCBC Bankard’s Free for Life Promo until December 31, 2021

• Foreign currency transaction fee: 3.5%

• Interest rate: 2%

• Late payment fee: PHP 850 or USD 17 or the minimum amount due, whichever is lower

• Overlimit fee: PHP 600 or USD 12

✅ This is ideal for lifestyle, travel, and shopping lovers and with a minimum monthly income of Php 15, 000.

HSBC Red Mastercard

Do you like online shopping? HSBC's Red Mastercard makes it easier and more lucrative. For every PHP 20 you spend shopping online with this card, you'll gain 1 additional point. All future yearly fees are also waived if you apply for this card for the very first time and get approved.

Key features and benefits

• 6% rebate on your first fuel purchase at Caltex and 3% rebate all year round

• 0% interest installment deals of up to 36 months

• Earn 1 bonus point for every PHP 20 spend

• Exclusive travel deals with over 27,000 establishments in 160 countries

Fees and charges

• Annual fee: Waived for the first year / waived for life when you join HSBC’s Free Annual Fee for Life Online Acquisition Promo until December 31, 2021

• Foreign currency transaction fee: 2.5%

• Interest rate: 2%

• Late payment fee: PHP 1,000 or unpaid minimum amount due, whichever is lower

• Overlimit fee: PHP 800

✅ This is ideal for online shoppers and with a minimum monthly income of Php 16, 666.

HSBC Gold Visa Cash Back

Using your HSBC Gold Visa Cash Back credit card when you go out to eat might help you save money. A 5 percent payback is given to all customers who dine at restaurants that have been approved by the bank for use of their credit cards. If you are accepted for your first HSBC Gold Visa Cash Back credit card, you will not be charged an annual fee again for the rest of your life.

Key features and benefits

• 3% rebate on fuel purchases at Caltex

• Earn 5% cash back on dining transactions and 0.5% cash back on other transactions

• Exclusive travel deals with over 27,000 establishments in 160 countries

Fees and charges

• Annual fee: Waived for the first year / waived for life when you join HSBC’s Free Annual Fee for Life Online Acquisition Promo until December 31, 2021

• Foreign currency transaction fee: 2.5%

• Interest rate: 2%

• Late payment fee: PHP 1,000 or unpaid minimum amount due, whichever is lower

• Overlimit fee: PHP 800

✅ This is ideal for those who love dining out and with a minimum monthly income of Php 16, 666.

Security Bank Classic Rewards Mastercard

As first-time cardholders, some people are looking for a card that not only waives yearly fees but also has a solid reward program. The Classic Reward Mastercard from Security Bank is a good option because of the rewards points that never expire. The points you've earned are yours to use whenever you like.

Key features and benefits

• Access to NAIA Terminal 1 and Terminal 3’s Marhaba Lounge

• Earn 1 rewards point for every PHP 20 spend

• Exclusive Mastercard promos

• Globally accepted

• Secure online shopping with SecureCode

Fees and charges

• Annual fee: Waived for the first year

• Foreign currency transaction fee: 2.5%

• Interest rate: 2%

• Late payment fee: PHP 600 or 6%

• Overlimit fee: PHP 500

✅ This is ideal for first-time credit card users and with a minimum monthly income of Php 30, 000.

Security Bank Gold Rewards Mastercard

With Security Bank's Gold Rewards Mastercard, you'll be rewarded every time you purchase online. Because the points you earn don't expire with this card, it's an excellent option. The Marhaba Lounge at NAIA Terminals is one of the features of this card.

Key features and benefits

• Earn 1 rewards point for every PHP 20 spend

• Exclusive Mastercard promos

• Globally accepted

• Secure online shopping with SecureCode

Fees and charges

• Annual fee: Waived for the first year

• Foreign currency transaction fee: 2.5%

• Interest rate: 2%

• Late payment fee: PHP 600 or 6%

• Overlimit fee: PHP 500

✅ This is ideal for online shoppers and with a minimum monthly income of Php 40, 000.

NO ANNUAL FEE FOR LIFE

In layman's terms, this implies that you will not be charged an annual fee again. Every year, you won't have to worry about paying your membership fee. This is a standard feature on most low-cost cards.

Below are the credit cards with no annual fee for life in the Philippines with their features and benefits:

AUB Classic Mastercard

The AUB Classic Mastercard is one of the best credit cards in the Philippines that does not charge an annual fee. An additional benefit of the AUB Classic Mastercard is the flexibility it offers users in terms of how much and when they pay off their credit card debt.

Key features and benefits

• 0% interest on new purchases

• Earn 1 rewards point for every PHP 50 spent

• No annual fee for life (principal and two supplementary cardholders)

• Flexible payment options that let you decide how often you wish to make a payment each month

Fees and charges

• Card replacement fee: PHP 500

• Foreign transaction fee: 1.5% service fee added to the sum of peso conversion and Mastercard fees

• Interest rate: 2%

• Late payment fee: PHP 750 or the unpaid minimum amount due, whichever is lower

✅ This is ideal for individuals on a budget and with a minimum monthly income of Php 21, 000.

AUB Easy Mastercard

Just like the AUB Classic Mastercard, which comes with a free yearly charge for life, the AUB Easy Mastercard also gives you includes a wider range of minimum payment alternatives. If you have trouble paying your bills on time using your credit card, this is the best credit card for you.

Key features and benefits

• 0% interest on new purchases

• Earn 1 rewards point for every PHP 50 spent

• No annual fee for life (principal and two supplementary cardholders)

• Flexible payment options that let you decide how often you wish to make a payment each month

Fees and charges

• Card replacement fee: PHP 500

• Foreign transaction fee: 1.5% service fee added to the sum of peso conversion and Mastercard fees

• Interest rate: 2%

• Late payment fee: PHP 750 or the unpaid minimum amount due, whichever is lower

✅ This is ideal for individuals individuals who want more payment flexibility and with a minimum monthly income of Php 21, 000.

City Simplicity+ Card

More flexible payment options are offered to customers of the Citi Simplicity+ Card than other credit cards with no annual fee. Aside from this, interest fees will also be reduced by 10% for cardholders who pay the minimum amount due on or before the due date.

Key features and benefits

• No annual fee for life

• No late fees and no overlimit fees

• Up to 50% discount on participating resorts and hotels

• Up to 50% discount on participating restaurants

Fees and charges

• Cash advance fee: PHP 200

• Foreign transaction fee: 3.525%

• Interest rate: 2%

✅ This is ideal for regular credit card users and with a minimum monthly income of Php 15, 000 if you have another credit card and Php 20, 833 if you have none.

EastWest Platinum Mastercard

The EastWest Platinum Mastercard is without a doubt one of the most coveted no-annual-fee credit cards in the Philippines today. Even if their yearly income criterion is high, cardholders may make use of the perks that come with their credit card including 24/7 globe concierge services and shorter payment periods.

Key features and benefits

• No annual fee for life (principal and supplementary cardholders)

• Earn 1 rewards point for every PHP 40 spent

• Free travel insurance up to PHP 20 million

• 24/7 Mastercard concierge service

• Free EastWest Platinum Virtual Card for online shopping

Fees and charges

• Cash advance fee: PHP 200 per transaction

• Foreign currency transaction fee: 1.70%

• Interest rate: 2%

• Late payment fee: PHP 1,500 or the unpaid minimum payment due, whichever is higher

✅ This is ideal for executives and business people and with a minimum monthly income of Php 150, 000.

Metrobank M Free Mastercard

If you often use a credit card to pay your utility bills, Metrobank M Free Mastercard is a good option for you. Its Bills2Pay feature allows you to set up automatic payments for your monthly bills. In addition to this feature, Metrobank M Free Mastercard also has MTXT in which you can get a quick SMS update on the remaining credit on your card.

Key features and benefits

• 0% installment on a wide range of establishments

• Comes with an embedded EMV-chip

• No annual fee for life

Fees and charges

• Cash advance fee: PHP 200 per transaction

• Interest rate: 2%

• Late payment fee: PHP 1,000 or unpaid minimum amount due, whichever is lower

✅ This is ideal for financially savvy millennials and with a minimum monthly income of Php 15, 000.

PSBank Credit Mastercard

Newcomers to credit cards are not supposed to feel intimidated. With that in mind, they should go for cards that are simple and easy to use, such as the PSBank Credit Mastercard. This card may be used for a variety of everyday needs, such as food and utility payments. A variety of payment options, exclusive benefits, and installment plans are all available to members.

Key features and benefits

• Comes with an embedded EMV-chip

• M TXT service for easy credit card balance monitoring

• No annual fee for life

Fees and charges

• Cash advance fee: PHP 200

• Interest rate: 2%

• Late payment fee: PHP 850 or unpaid minimum amount due, whichever is lower

✅ This is ideal for low income earners who need to manage their expenses well and with a minimum monthly income of Php 15, 000.

PNB's The Travel Club Platinum Mastercard

Using a credit card while booking a flight or buying souvenirs while in a foreign land is a common practice for frequent flyers. With the PNB Travel Platinum Mastercard, you can optimize your savings and points.

Key features and benefits

• 20% birthday month discount on regular-priced TTC house brands

• 5% discount at all TTC branches

• 1% rebate on TTC installment transactions

• Dual currency billing

• Earn 1 rewards point for every PHP 40 spent at TTC and PHP 70 elsewhere

• Free purchase protection insurance

• No annual fee for life

• Up to PHP 3 million travel insurance coverage

• Waived repair service fee beyond the warranty period

Fees and charges

• Cash advance fee: PHP 200 or USD 5

• Foreign currency transaction fee: 2.50%

• Interest rate: 2%

• Late payment fee: 7% (Peso) or 5% (Dollar) of the unsettled minimum amount due

✅ This is ideal for frequent travelers and loyal The Travel Club or TTC customers and with a minimum monthly income of Php 10, 000.

PNB Ze-Lo Mastercard

Because of the many costs, in addition to the annual fee that comes with credit cards, some individuals shun them like plague. Late payment and over limit fees are two of the most prominent examples of these charges. First-time credit card users commonly want to pay the smallest possible costs-- and this is where PNB Ze-Lo Mastercard comes. It allows you to enjoy the ease of a credit card without having to pay a lot of money for it.

Key features and benefits

• Globally accepted

• Lower minimum amount due

• No annual fee for life

• No late payment and over-limit fees

Fees and charges

• Foreign currency transaction fee: 2.5%

• Interest rate: 2%

• Late payment fee: None

• Overlimit fee: None

✅ This is ideal for first-time credit card users and with a minimum monthly income of Php 10, 000.

Robinsons Bank DOS Mastercard

The ability to pay for a purchase over time in installments is a convenient way to save money when making a large purchase. No minimum balance or interest is necessary when you use the Robinsons Bank DOS Mastercard, which automatically converts all your purchases into two-month installments. When purchasing large quantities of groceries or a plane ticket, this credit card may make your payments more manageable.

Key features and benefits

• Automatic conversion of all straight purchases to two-month 0% installment

• Earn 1 rewards point for every PHP 50 spent

• To qualify for no annual charge for life, you must use your Robinsons Bank credit card 12 times or more in a calendar year, every year.

Fees and charges

• Annual fee (for cardholders who use their cards less than 12 times a year): PHP 100 per month (Classic) / PHP 3,000 (Platinum)

• Interest rate: 2%

• Late payment fee: PHP 750

• Overlimit fee: PHP 750

✅ This is ideal for low-income earners and with a minimum monthly income of Php 15, 000 for single individuals and Php 20, 000 if you are married.

In the world of point collectors, annual fees on credit cards are an unavoidable reality. In order to get the most rewards points from your card, you'll almost certainly have to pay some kind of charge to use it.

It's also important to have a good credit standing to enjoy most of its perks such as a bank home loan investment. Lumina Homes is one of the top leading community providers in the Philippines that offer a flexible payment scheme through bank financing.

To know more about the wide range of communities nationwide and home model units offered by Lumina Homes, visit the property listing page.