Is your credit card’s annual fee refundable?
The annual fee can easily be overlooked if your credit card is automatically renewed for another year. Once you’ve gotten over the excitement of welcome bonuses and cashback perks, it’s easy to forget as the fee becomes one of many items on a monthly statement and won’t be noticed until long after the charge is processed. But what if you didn’t want to renew your card – can you still cancel it and get the annual fee refunded?
Most credit card companies reimburse annual fees
Fortunately, most lenders have will refund your annual fee retrospectively if you call them to cancel the card, provided the renewal date is relatively short. As a rule, you have to do this by the cut-off date for the statement on which the debit appears.
In general, the sooner you cancel, the more likely the fee will be refunded – after all, if the card is canceled after about a month, it is much more difficult for a lender to justify the one-year term fee. Here’s a look at the major lenders’ refund policies:
- American Express offers a refund if you cancel within 30 days the key date of the statement on which the annual fee appears.
- Bank of America has no set policy, but you are more likely to receive a refund if you cancel immediately after booking the fee. Making payments on time in the past also helps.
- Barclays offers a refund if you cancel within 60 days the key date of the statement that contains the change in the annual fee.
- Capital one offers a refund if you cancel within 30 days of the billing date.
- Hunt too allows refunds within 30 days the key date of the statement on which the fee appears.
- city reimburses you your annual fee for up to 3 – 7 Days after the prosecution meets your testimony.
- US bank Your annual fee will automatically be refunded if you open the account within 30 days the fee that appears on your bank statement.
- Wells Fargo will give you a refund within 90 days the annual fee will be charged.
One thing to note: Closing a credit card account can affect your credit score. Instead of closing the account, consider downgrading to a toll-free card. For more on this check out this Lifehacker postthat spells out all of your options.