Credit card annual fee waiver condition — how does it actually work?
Palanivel Sahni
Asked 28 Mar 2026
Banks say annual fee is waived if I spend ₹25,000 in the previous year. Does the spend include EMI, wallet loads, and reversals? Please clarify with examples.
4 Answers
Tip from someone who made this mistake: never max out the credit limit in the first 6 months. Banks track utilisation, and high utilisation right after approval often triggers a credit limit decrease or even an account review.
On credit limit increase: most banks auto-review every 6 months. If you use 30-70% of the limit and pay in full, you'll get an automatic increase. Don't call and ask for it explicitly — banks take it as a sign of credit hunger and sometimes lower the limit instead.
I have had a hard time getting this card approved twice. The third time I applied after a 10% salary hike and got instant approval. Banks re-check eligibility every time. If you got rejected, improve your income proof / CIBIL and reapply after 6 months.
Forex markup comparison: Amex = 3.5%, HDFC Infinia/Diners Black = 2.0%, Axis Atlas = 3.5% but with milestone fee waivers, ICICI Emeralde = 3.5%, Standard Chartered = 3.5%. If you travel more than twice a year, the math favours Infinia or Diners Black.
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