Yes, U.S. Bank does refund annual fees, as long as cardholders cancel their account within 30 days of when the fee is assessed. It’s sometimes possible to get a U.S. Bank annual fee refunded or waived due to financial hardship or active military status, too. Otherwise, if you try to get a refund on your annual fee after 30 days, U.S. Bank may be able to offer you a prorated refund, though you won’t get the whole fee back.
How to Get a U.S. Bank Annual Fee Refund
Call credit card customer service at (800) 285-8585 within 30 days of the fee being charged.
Ask the representative to cancel your account.
Request a refund for the annual fee.
Receive the refunded fee as a credit or check.
If you decide to cancel your U.S. Bank card in order to get an annual fee refund, just make sure you’ve redeemed any credit card rewards and paid your balance in full before you cancel. And if you want to see how this move might affect your credit score, try WalletHub’s free credit score simulator.
The easiest way of getting your credit card annual fee waived would be to pick a credit card that waives the annual fee during the first year as a promotion, or one with no annual fee at all. Alternatively, you can call the issuer’s retention line, but it is not guaranteed that it will work. Beyond that, you’re unlikely to get your credit card’s annual fee waived unless you’re an active-duty member of the military. Still, it never hurts to ask, even if success is a long shot.… read full answer
Being well-informed about your rights and alternative credit card options definitely will help your chances. And you can find the most important info below.
Here’s how to get a credit card annual fee waived:
If you’re employed full-time by the U.S. military, call your issuer and tell them you’d like your SCRA benefits. Exactly how the process works differs by company, but they will ask you to prove your active military status. For example, you might provide a copy of your active duty orders. Once you send the issuer proof, they should waive your annual fee as well as reduce your interest rate. When applying for a card, there’s sometimes a box you can check to indicate your military status, too.
Call the retention line and ask your card’s issuer to waive or lower its annual fee. Long-time customers and high-spenders with great credit who always pay in full likely have the best chance.
It’s a common credit card promotion to waive the annual fee for the first year your account is open. This will be noted on the offer when you apply, though. It’s not something you have to ask for.
If you really want to avoid fees, get a no annual fee credit card. Hundreds are available, including cards with rewards and 0% APRs. You might be able to get a better deal overall by paying an annual fee for more rewards.
If you’re having difficulty paying your annual fee due to unforeseen financial difficulty, you might be able to apply for a financial relief/ hardship program with the issuer. This way, you could potentially have your annual fee waived. Or you might receive other assistance such as lower monthly payments or lower interest rates.
Since annual fees help pay for the benefits credit cards provide, issuers aren’t eager to waive them. But there’s no penalty for asking. And if you’re in the military, you should definitely take advantage of the waiver you’ve earned with your service.
Credit cards with annual fees are worth it when they save you more than they cost you, especially if your savings exceed what the best no annual fee credit cards available to you would provide. Paying an annual fee on a credit card can unlock bigger initial rewards bonuses, higher ongoing earning rates, and a variety of additional benefits. But you need to make sure you get your money’s worth and actually use the perks you’re paying extra for. If you don't, a credit card that does not charge annual fees may offer better long-term value.… read full answer
Times When a Credit Card Annual Fee Is Worth It
When you can spend enough on the card to earn rewards worth more than the annual fee
Rewards can come as cash back, points, or miles, and if you spend enough to earn lots of them, the rewards alone can pay for your annual fee. If your card gives 1.5% back on purchases and the annual fee is $95, for instance, you’ll have to spend about $6,350 annually to break even with ongoing rewards alone.
When the perks your card offers are things you’re going to buy and use anyway
Annual travel credits, airport lounge memberships, TSA Pre-Check application credits, and free hotel nights are a few high-value perks offered by some credit cards. If you were planning to spend money on these things anyway, the annual fee on a credit card might start to seem like a deal.
When it would save you more than the best card with no annual fee
If you crunch the numbers and determine that a card with an annual fee would save you the most money at the end of the day, even considering the fixed yearly cost, then go for it. Just make sure to reevaluate if your spending or payment plans change.
To figure out if a credit card’s annual fee is going to be worth paying, consider how much you spend – overall and in the card’s major rewards categories. Then calculate how much you would earn with each card’s rewards structure. And evaluate the practical value of the card’s other perks – it’s good to be realistic about how often you’ll use them. Finally, subtract the annual fee. The remainder is how much the card could save you, assuming you pay the bill in full every month and avoid finance charges.
Closing a credit card with zero balance is not a good idea if that card has no annual fee. Any credit card you manage responsibly, even an unused one, reflects positively on your credit history. So closing such a card will have a negative impact on your credit standing. But it can be worth it if your card is costly or if you’re worried about falling victim to fraud while you’re not keeping a close eye on it.… read full answer
Here are the arguments against closing a credit card with zero balance:
Average account age suffers. This makes up at least 15% of your overall credit rating, so shortening it can hurt. Here’s a quick example: Imagine you have three credit card accounts, which have been open for 3 years, 5 years and 10 years, respectively. The average account age is 6 years. If you close the 10-year-old account, the age of your average account falls to 4 years. Older accounts are better for your score because a long track record of responsibility tells issuers you’re likely to behave the same way in the future.
Utilization increases. “Utilization,” or how much of your credit line you use, is important to your score. Creditors care about both your utilization on individual cards and your total utilization. Generally, the lower each is, the better. And closing an account with zero balance will increase your total utilization.Let’s say you have three credit cards, each with a $1,000 credit line. You use 0% of one and 25% of the other two. Overall, that’s 16.7% utilization. But if you cancel the unused card, it jumps to 25%. That’s troublesome because credit score damage typically worsens if your utilization rises above 30%, and you’d be close to that milestone.
So closing an account will be a blow to your credit. You can improve your score afterward by paying on time with your remaining account(s). But it’s usually best to just keep accounts open and avoid the damage entirely. There are a few exceptions, though.
Here’s when to close a credit card with zero balance:
It has an expensive annual fee.
You’re worried about fraud and won’t be monitoring the card as closely. All credit cards give you a $0 fraud liability guarantee, but you might not want to count on the issuer to flag every fraudulent charge on its own.
Keeping it open becomes a hassle, for one reason or another.
By the way, in case you’re wondering, it is possible to close a credit card that has a balance. But you’ll still be responsible for paying and will continue to accrue interest until the balance is fully paid off, even after the account is closed. You just won’t be able to make any new purchases.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.