When do annual fees get charged?

Discussion in 'Newbies' started by nonstopski, Nov 25, 2013.  |  Print Topic

  1. nonstopski

    nonstopski Silver Member

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    This popped up in my head because I was thinking of doing small business Saturday with my two amex cards but one of them I'm supposed to be canceling in a month to avoid the annual fee (and SBE says it posts within 90 days). I applied for the amex in January 2013 and was going to cancel it next month. Basically in the 11th month. This is for the City AAdvantage card. Just wonder if I can get. Better idea of you that annual fee will get charged.

    I'll certainly call them and see if they'll waive the fee. Does anyone ever have luck with that?
     
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  2. I am here now!

    I am here now! Active Member

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    If you want to be sure about the date for the annual fee, you can always give Amex a call. That what I did last summer as I knew I was close but now sure exactly how close to that date. It just so happened that I called the day before, so I was fine.
     
  3. gconnery

    gconnery Silver Member

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    With most card issuers, in particular Chase, Citi and Amex there are options on the web site to Secure Message them and you can just do that. Its basically just email, but confined to the site for security purposes. This might be easier for you than calling. Some also have Chat options.
     
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  4. miles and smiles
    Original Member

    miles and smiles Gold Member

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    You always have at least 30 days after the annual fee posts to cancel the card.
     
  5. tomsam

    tomsam Silver Member

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    Citi generally provides a couple of options on the AmEx if you say you want to cancel your card to avoid the annual fee:
    - credit of the annual fee and a spend bonus (such as 750 bonus miles if you spend at least $750 on the card every month for 16 months)
    - 3000 bonus miles if you spend $500 on the card within a certain time period
    - offer to downgrade you to a no-annual fee bronze card which gives you 1 mile per $2 spend on the card.
    I believe you can get offers 1 and 2 prior to annual fee posting but offer 3 requires the annual fee to post (they will credit the annual fee back to your account).
    Some times the retention offers don't show on your account or a particular CSA doesn't make you a retention offer so hang up and call back the next day.
     
  6. nonstopski

    nonstopski Silver Member

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    I was able to find out through secure message (thanks for that idea guys). I'll get charged for both citi AA cards (visa and amex) in February of 2014. I'm not planning on using the card between now and then (as I'm meeting minimum spend with some other cards).

    So was thinking of calling now/next few days and saying I can't pay the fee.

    @tomsam, is offer 2 (the 3000 bonus miles) still charge you the fee? Should I cancel the Visa and Amex at the same time if I do indeed completely cancel them, or is it better to cancel them a few months apart? I would think it's better to cancel a few months apart due to the credit score hit.
     
  7. cvsara
    Original Member

    cvsara Gold Member

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    But, doesn't that mean that you can't have a charge to that card during that 'grace' period?
     
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  8. miles and smiles
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    miles and smiles Gold Member

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    I've put charges on my cards right before cancelling them. That way I avoid the annual fee, but extend the expiration of the miles/points.
     
  9. tomsam

    tomsam Silver Member

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    Offer 2 (if available to you) does not waive the annual fee.
    If you're canceling to avoid the annual fee, I don't think canceling a couple of months apart will materially change the impact to your credit score. So just pick the right time to cancel so that you can indeed avoid the annual fee.
     
  10. nonstopski

    nonstopski Silver Member

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    Curious how the card cancel impacts expiration of miles and points that have already transferred to your account?
     
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  11. miles and smiles
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    miles and smiles Gold Member

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    That's why I always use a card just before cancelling - to extend the expiration.
     
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  12. euromannn
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    euromannn Gold Member

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    Citi extended my VISA card one year in May 2013 claiming in the extension it was a one time offer. Do you think they will extend in 2014 with another extension or is ONCE all they do?
     
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  13. tomsam

    tomsam Silver Member

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    I can't answer this with absolute certainty. If they refuse to give waive annual fees or give you a "bonus" of some sort on the second anniversary, you can always downgrade to the fee-free bronze card (if you don't think the normal mileage accrual rate is worth paying the annual fee).
     
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  14. jwsky
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    jwsky Silver Member

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    They have given me one free year after the other. Maybe 4 years now. I do use the card. There are usually a few easy hoops to jump through to get the credit for the fee.
     
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  15. miles and smiles
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    miles and smiles Gold Member

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    In my experience Citi is very generous with retention offers. Many people find it easy to receive credits for annual fees or other good offers for keeping their cards.
     
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  16. euromannn
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    euromannn Gold Member

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    HAHA!

    I'll pay you $20 to call on my behalf to waive my annual fee each year until I pass away!!!!!
     
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  17. satman40

    satman40 Gold Member

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    A program called Credit Card Watch Dig will send you an Email alert when the card is up for renewal, or just put the date in your appointment book.

    Almost time to buy one for next year...5X @ OD w/ INK
     
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  18. jwsky
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    jwsky Silver Member

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    I usually tell them I want to cancel. They ask why. I say that I do not want to pay the fee. Then they transfer me to a different agent who offers me a deal to stay.
     
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  19. euromannn
    Original Member

    euromannn Gold Member

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    Thanks, sounds like you and miles & smiles have had success on retention fee waivers.

    Appreciate the heads-up. I clearly was told last February on a pre-recorded line my fee waiver was a one time only.
    SO........I will hold me breath but thank you for the good advice as if the first representative does not offer a fee waiver option I will keep calling back since you had success.
     
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  20. nonstopski

    nonstopski Silver Member

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    I went ahead and moved down to the bronze card for now (the second person I talked to offered to give me a statement credit for the annual fee plus move me to bronze). I am still thinking of canceling after this happens though, but need to look into what the current rules are around applying for a new citi aadvantage card with the bonus still available to me. I know Citi started to crack down on repeat users (http://millionmilesecrets.com/2013/04/09/get-2-citi-cards/).

    Anyone have any experience with this? It looks like current strategy with the Citi AA is that you have to wait 18 months after you originally applied to get the bonus. But what if you still have a current Aadvantage card (at the bronze level)? Does that make you ineligible?
     
  21. satman40

    satman40 Gold Member

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    I have churned Citi almost the next day, just book an AA Flight and they will have a card for you to get the $100.00 rebate fast.
     

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