Waive the annual fee?

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2percentPlus
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Waive the annual fee?

Postby 2percentPlus » Tue Feb 21, 2012 11:37 pm

BoA/FIA miles card, about $100 annual fee.

1st year with the card and have spent about $1MM, paid many times per month, so of course no adverse history.

Renewal time is coming up in a month, and I'm not going to pay a renewal fee. My options are A) close the account or B) get them to waive the fee.

How likely is option B? And don't give me any of this if I spend so much I can afford the annual fee...I don't want the card, or another million miles, but I could use a few more months with no fee before I do something else.


DavidNY
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Postby DavidNY » Wed Feb 22, 2012 9:43 am

If they decline to waive the fee, you could switch the product to one that doesn't have an annual fee like the BankAmericard Cash Rewards Signature Visa.

DoingHomework
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Postby DoingHomework » Wed Feb 22, 2012 1:53 pm

They should waive the fee. If they don't then I'd walk into a BofA branch and get a human to act on your behalf. $1 MM a year is not a trivial amount. I'm confident they will waive the fee if you get the right people involved and threaten to leave if you are not successful at first.

2percentPlus
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Postby 2percentPlus » Wed Feb 22, 2012 10:57 pm

Going into the bank is a good idea, I just don't like to draw attention to my accounts that's all.

I really don't need that card at all, if they gave it to me for free I would probably keep it to see what I could do with the elite airline status things, otherwise Virgin miles are a joke when you find out it *currently* costs $800 for a fuel surcharge to even redeem a ticket..other airlines only charge you the normal taxes.

Oh, and I would move most or all of the credit line to another FIA card before closing if they went along with that idea. If they said no to the annual fee and let me switch it to a no annual fee card I would do that and leave like $5000 CL on it.

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Postby Money card » Wed Feb 22, 2012 11:21 pm

The reason they do it is because they want to make money.

you notice now that we have cards with names on it there are 2 versions.

capitol1 has the gold which is 1.25 miles so let's say you buy a gift card a Banana republic 25.00 so you would get 1.25 x 25.00
with the Blue you get 2.00 miles 50 miles and you only spent 25.00.

chase sapphire also has 2 cards the preferred and basic.

citibank has 2 thank yous the lower level card which earns 1 point per dollar and the 1 that earns 2 or 3points per dollar spent. 2 free airline tickets per year plus copies of your year end summary. somehow if you only use 1 credit card you will come out.

plus there are airlines and hotel cards which have fees.
theres nothing wrong with paying annual fees on a visa or master card as long as you end up way ahead.

David your correct he/she can get a cash back card like Bank of america cash rewards or chase freedom.

DoingHomework
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Postby DoingHomework » Thu Feb 23, 2012 12:21 pm

Banks make money off both the annual fee paid by card holders and discount fees paid by merchants. If you truly spend $1,000,000 per year then you produce about $30,000 in discount fee income for the bank. If they will not waive a $100 card fee to keep a customer like you then they have serious problems with their business policies and I would not hesitate to move on.

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Postby Money card » Thu Feb 23, 2012 10:16 pm

The thing is 2percentplus doesn't want to pay an annual fee on his/her Bank of America FIA miles card.

Basicallywhat happened back in the 80's all credit cards except store charge cards had annual fees. Chase had $25, Citibank had $20, First fidelty had $15. Then some companys from the boon docks started sending out applications of Gold cards with no annual fees, but major banks did not care. some honest man who was walking around 1984, didn't want to pay American Express annual fees and the banks fees, so around 1985-86 a man or woman started another credit card finincial company in the Back room of a department store called sears.

Then when the banks saw stores and restaurants starting to take this card, they took the annual fees off, back then the cards were grey, gold and platinum. Some people paid interest and others paid their bill in full.

As we all know there are only 2 ways the banks make money- 1 is by annual fees and the other is by interest.

So for somebody like me when we had no annual fees and I paid my bill in full, First card, Bank 1 and Chase made no money on me.

Paying credit cards isn't like a mortgage. I'm not saying everybody pays the bill in full but a lot do. Where as most people have a mortgage. What I'm trying to say some pay there credit cards in full and some pay over time.

Banks were not happy so they went to the airlines and hotels, they started offering exclusive credit card offers for miles to sign up so Chase, Citi, Bank of America ended up with airlines and hotels. Annual fees were only on those cards.

What the banks have done is added 2 cards for the higher level card. Example capitol1 gold card. Lower level 1.25 miles no annual fee, blue level after first year $59.00 and 2 miles per dollar, Chase Sapphire 0 fee for the basic then 95.00 for the sapphire. Citibank has the Thank You Preferred for $0 and the Premier for $125. Part of the money goes to the the concierge service and the other part goes to our perks.

But since I have a lower level venture card the miles I'm not getting goes to the banks and maybe the concierge service.

2percentPlus
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Postby 2percentPlus » Thu Feb 23, 2012 11:45 pm

Woah...

In a nutshell:

The bank makes no interest off of me, they pay for the miles program, and I'm not sure if they get a piece of the network fee Visa/MC/Amex; if they don't, then they make no money off me as far as I know, but I'm sure they wouldn't want to give out miles for nothing.

It's up to them really, will post an update sometimes next week.

Celestine
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Postby Celestine » Thu Feb 23, 2012 11:53 pm

2percentPlus wrote:Woah...

In a nutshell:

The bank makes no interest off of me, they pay for the miles program, and I'm not sure if they get a piece of the network fee Visa/MC/Amex; if they don't, then they make no money off me as far as I know, but I'm sure they wouldn't want to give out miles for nothing.

It's up to them really, will post an update sometimes next week.


My two cents... direct to the point... close that account and either open a better one or use your other cards that will reward you for spending huge amounts.
"Nearly all men can handle adversity, but if you really want to test a man's character - give him power." - Abraham Lincoln

2percentPlus
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Postby 2percentPlus » Fri Feb 24, 2012 12:44 am

Celestine wrote:My two cents... direct to the point... close that account and either open a better one or use your other cards that will reward you for spending huge amounts.


Thanks, but there was a question here:

B) get them to waive the fee.

How likely is option B?


I have other cards that give better rewards, the ones that I have replaced this card with, my credit limit is transferable between FIA cards so I would not simply close it, and I prefer to leave the card open and spend $5000 a month for tier points; with no annual fee.

Thanks anyway



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