Credit cards provide unparalleled convenience and rewards — but if you're not watching, the fees can soon outpace the benefits. From annual charges to late payment fees and foreign transaction fees, the hidden charges can mount up fast. Fortunately, there are wise, practical ways to sidestep or even waive many of these fees. Here's how you can get your credit card working for you — not against you.
1. Request an annual fee waiver
Most credit cards have an annual fee, particularly premium or rewards-based ones. But banks waive the fee if you spend a certain amount each year — and sometimes even without that. If you're a regular customer or have more than one product with the bank, simply call the customer care and ask for a waiver. Most users are amazed to see the fee reversed simply by asking.
2. Pay on time, every time
Late charge fees and interest charges are the most expensive credit card penalties. To prevent these, always pay the minimum due on or before the due date. Arrange for auto-debit or reminders so that you never miss a payment. Paying your bill in full not only avoids interest but also maintains a healthy credit score.
3. Redeem reward points to offset charges
See if your bank will let you use reward points to cover charges like the annual fee or membership fees. Even some cards enable you to pay off a portion of your bill using points. Rather than watch those points disappear, use them to save you money.
4. Don't pay foreign transaction fees by choosing the right card
If you travel abroad or shop regularly on overseas websites, verify if your card incurs forex markup charges (typically 2-3.5%). Use a card with zero or minimal forex charges, such as some premium cards, Niyo Global cards, or travel credit cards. This can save thousands a year.
5. Watch out for hidden charges on EMI conversions
When you turn purchases into EMIs, some banks apply processing fees or charge hidden interest rates. Carefully read the terms before you sign. If you notice extra fees later on, you can usually have them removed by phoning the bank — particularly if it wasn't correctly disclosed.
6. Utilise one card well rather than many cards poorly
If you have multiple credit cards, you might be paying multiple annual fees, some of which you don't need. Think about combining your spending on one or two well-tailored cards that offer you the best rewards and fee waivers. Cut up cards you don't use much — but make sure they don't have an early closure penalty.
Fees are not always fixed. Many of them are negotiable — especially if you’re a good customer. Whether it’s a late charge or a foreign markup fee, it often takes just one phone call to request a waiver. So keep track, stay proactive, and don’t let credit card charges eat into your savings.
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