As you know, many times the reason I apply for certain cards is because of lucrative sign-up bonuses. Once I meet the spend requirements for the bonus, I usually retire the card into a drawer, not to be taken out again unless there is some other incentive associated with the card.
So what do I do when a bill comes for the annual fee? I call the bank and ask them to waive the fee of course. A bank like Chase always says no and I am forced to cancel certain cards to avoid paying the fee. Don’t forget, canceling a card has a small impact on your credit score as long as other positive financial factors are in place. You can read about the effect of canceling a card on your credit score here.
But Citibank is another story. I just got the bill for the $95 annual fee for my Citi/AAdvantage Platinum Select World Elite Mastercard. I called yesterday and told them I did not want to pay the fee. Citibank did not want to lose me as a customer, despite the fact I rarely use the card. They made me an offer in which I need to use the card for 5 purchases of $20 or more over the next 3 months. If I do this, Citibank will credit the $95 fee. (I need to first pay the fee). I happily accepted. Its a Win-Win!