Credit Card Annual Fees

POSTED BY Kunal Kumar ON April 21, 2012 5:28 pm COMMENTS (5)

Hello All,

I have been holding a credit card for past 6 years and at the time of applying for it, I was told that I will not have to pay any annual fees for the card usage. Last year, they also upgraded my gold card to platinum credit card and at that point of time, it was confirmed too, that I will not have to pay any annual charges.

Recently I received a communication from my credit card bank about change in Annual fees charges. As per the mail communication, they did review of credit card policy and it seems that now none of the card which they offered are free of annual fees and hence I will also have to pay Rs 2000/- as annual fees from this year onward.

When I spoke to the customer care team, they agreed that before the policy review, zero annual fee was applicable to my card but now, they cant give it so. Now I have following options which I can go for

1) Keep using the same card and start paying the annual fees. Please note that I will have to pay Rs. 2000/- as annual fee from this year onwards. What if they change the annual fee from next year onwards?

2) They are offering (store branded) platinum credit card with less annual fees and I have an option to choose those cards if I do not wish to use the same card( which has now high annual fees ). Problem is how much CIBIL score will take beating cause of new card? When I look at my CIBIL report, it has information about both gold and platinum card. The status of Gold credit card (Which was upgraded to platinum card ) is not filled and only the current balance is zero. Which indicates me that if I go for another card, CIBIL report will contain a new card which might impact my credit score.

3) Cancel the existing platinum card immediately and hence disagree to annual fee charges. Again if I choose this option, how CIBIL report will be impacted? I read it online that cancellation of Credit card impacts the CIBIL score negatively. is this correct? If so, then I am probably stuck with this card and continue paying the annual fees ?

Just to add here, my CIBIL score is 832 and I do not want to take it a beating cause of any credit card issue (which is not even my fault 🙁 )


5 replies on this article “Credit Card Annual Fees”

  1. BanyanFA says:

    As Ashal has mentioned, closing a credit card account and moving to a different one would not affect your credit score with CIBIL. What would affect your credit score is not paying your dues on time.

    You need to do a cost benefit analysis while opting for a card with Annual Fees. If you can make the use out of the benefits more than the fees, go for it. Else switch for other options.


  2. Tell your existing card company that you are willing to move out to different vendor.
    Ask them to wave off else you stop your relation with them. This has worked for many.

    Worst case senario. Check if any other card company is offering free credit card.
    If yes. pay off 2k and get out of it.

    If i was you, i would have got out of credit card completely.

    1. Kunal Kumar says:


      I have already spoken to them about this and they are not willing to do so.

      I am also planning to opt out if it does not hamper CIBIL score too much. ( See rule 5- )

  3. Dear Kunal, changing the Credit Card from Level A to level B (in terms of features) ‘ll not impact your credit score. Yes not paying dues in time ‘ll surely impact your cibil score.

    So you are free to opt the card of your choice.



    1. Kunal Kumar says:


      What I am concerned about if I move from card A to card B (from the same company), essentially what they will do is to close card A, and create a new card B which obviously means a new entry in CIBIL record for credits.

      Now that also, I’ll have three credit entry in CIBIL (two of them will be in Closed state and another one in running condition). Does this sounds okay ?

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