- in Savings
Many of you are likely harvesting credit card points by signing up for new cards with fat ($500-$800) bonuses. Some of the best cards continue to pay about 2 percent cash back in perpetuity. There is a catch, however. After that first year, many cards with the fattest bonuses charge a fee, usually from $50 to $99.
If you like the card, I have a tip for you. Before you cancel the card due to the fee, just call the firm and ask them to waive the fee.
An Example With Capital One
I have a great two percent cash back card with Capital One. The only trick, after the first year, the firm charges a fee of $59 yearly. It’s still a good deal, but I know these companies are making money hand over fist just on the transactions.
So I called up Capital One. I said, “I love you guys … I love this card … but I’m trying to restrict my credit cards to only those that have no fees. [All true, btw.] I’d like to ask you to waive this fee.”
Capital One did something tricky. They told me they couldn’t consider waiving it until the fee had already been charged. So I decided to take my chances and wait until the debit showed up. Then I called back. I had the same conversation. Within probably three minutes the customer service rep came back and said, “You are a great customer and have been with us for a long time. We are happy to waive the fee.”
So there you go. Total time invested for both calls was probably about 30 minutes. For $59, that’s worth it.
Think of these games like a part time job that pays really well.