In the past, folks could get a prorated refund up to 6 months after paying a card’s annual fee. This means if you paid a $100 annual fee, you could cancel or downgrade 6 months later and get $50 back.
But now, you might only have 30 days to cancel or downgrade and get a credit for the annual fee after it is billed.
I’ll explain why this change shouldn’t affect most folks!
New Chase Annual Fee Reimbursement Policy
Link: Doctor of Credit
Doctor of Credit and several folks on Reddit indicate Chase is no longer offering to refund annual fees unless you cancel or downgrade a card within 30 days of the annual fee appearing on your statement.
But Million Mile Secrets team member Keith called Chase recently. And they still offered a prorated refund for an annual fee that was billed on a Chase Sapphire Preferred card 3 months ago.
The new policy may not be in place for all cards across the bank, yet. But if the change at Chase does occur, it will be the same as the policy for all American Express cards.
Banks are likely making these changes because some folks apply for cards to get a sign-up bonus, then cancel the card right away. This is a big no-no in the miles & points world. And it could get you blacklisted by the banks!
That’s why I usually recommend folks hang onto a card for ~10 months. This gives you time to evaluate the perks of a card and see if it’s worth keeping.
And cards with annual fees usually come with terrific perks that can make them worth keeping. Like a free hotel night, bonus points, or elite status. That’s why even thrifty folks like me keep annual fee cards year after year!
For example, I always keep the Chase IHG card in my wallet, even with the $49 annual fee. Because it comes with a free night certificate every year on your card anniversary. And it can be used at ANY IHG hotel in the world! This can be worth hundreds of dollars!
Remember, instead of canceling, you can always downgrade to a no annual fee card!
Chase might be changing the policy for reimbursing annual fees when you cancel or downgrade a credit card. Instead of having 180 days to receive a prorated refund, you’ll only have 30 days to get the annual fee back.
So be sure to keep track of when your annual fee hits. And remember annual fee cards have lots of perks that might make them worth keeping!