It can be easy to overlook the annual fee when your credit card automatically renews for another year. Once you’ve got over the excitement of the welcome bonuses and cash back benefits, it’s easy to forget, as fees become just one of many items on a monthly statement, only noticed long after processing. expenses. But what if you didn’t intend to renew your card? Can you still cancel it and get a refund on the annual fee?
Most credit card companies reimburse annual fees
Fortunately, most lenders will retroactively reimburse your annual fee if you call them to cancel the card, provided it is still relatively close to your renewal date. Usually, you will need to do this before the closing date of the statement on which the charge appears.
As a general rule, the earlier you cancel, the more likely the fees are to be refunded. After all, it’s much harder for a lender to justify a one-year fee if the card is canceled after a month or so. Here is an overview of the repayment policies of the major lenders:
- American Express offers a refund if you cancel within 30 days the closing date of the billing statement on which the annual fee appears.
- Bank of America doesn’t have a set policy, but you’re more likely to get a refund if you cancel right after posting charges. It also helps if you are used to making payments on time.
- Barclays offers a refund if you cancel within 60 days the closing date of the statement which includes the modification of the annual subscription.
- A capital letter provides a refund if you cancel in 30 days the date of the statement.
- also hunt allows refunds in 30 days the closing date of the billing statement on which the fee appears.
- Citi will reimburse your annual membership fee up to 37 days after the charge hits your return.
- American Bank automatically reimburse their annual fees if you close the account within 30 days charges appearing on your statement.
- Wells fargo will reimburse you within 90 days to be billed for the annual membership fee.
One thing to keep in mind: closing a credit card account can hurt your credit score. Instead of closing the account, you can consider upgrading to a no-cost card. To know more, check out this article from Lifehacker, which lists all of your options.