The annual fee on your credit card is charged for the credit card account that is under your name. That being said, it has absolutely nothing to do with whether or not the credit card is being used. In short, you pay the annual fee for your account and not for using the credit card. Some credit cards have their annual fee waived for a certain amount of time as part of their marketing package.
Rewards credit cards usually have annual fees associated with them which come with different incentives. These may include cash back on any purchases, miles or even points. Other than rewards credit cards, secured cards also charge an annual fee for those consumers who are in hopes of boosting their credit scores. This makes it rather obvious that paying an annual fee for your credit card is only advantageous if you are benefiting from the rewards it has to offer.
Get your annual fee waived
As mentioned above, some credit cards have the first years’ annual fee waived. If your credit card has this bonus then you’re in luck. On the other hand, if you’ve already signed up for a credit card that does not have the annual fee waived then do not worry! It is possible to have your credit card’s annual fee waived if you have had the card for less than one year by simply calling up the bank and asking them to do so. Many banks are known to do this and if yours doesn’t then they will probably offer you something else instead like bonus points or statement credit. Either ways, can’t hurt to make the call!
Another way to have your annual fee waived is to cancel the card all together. This may seem like a drastic measure but if you are not going to be using your card and benefiting from the rewards, you might as well cancel your account. The important point to note here is that you have to cancel your account and not just stop using the card. You will still be charged the annual fee even if you do not use the credit card.
If you’ve just signed up for a new card with an annual fee, try calling the bank and have your annual fee waived. And if by the end of the first year you are not satisfied with the rewards that you get you can simply have your account cancelled.