Annual Fee Justification Worksheet for Every Card Application

Premium cards tempt you with lounges and vouchers. Before hitting apply, run the numbers.

Signal: If guaranteed value (welcome + milestone + cashback) is <2× the fee, skip or downgrade.

Worksheet

Line item	Example	Notes
Annual fee	₹5,000	Include GST.
Guaranteed vouchers	₹5,000 Taj voucher	Use conservative resale value (₹4,000).
Earn rate benefit	+₹6,000 via SmartBuy	Base this on last year’s actual spend.
Opportunity cost	-₹1,000 (time, tracking)	Don’t ignore admin effort.

Total > fee ×2? Keep/apply. Else, cancel/downgrade.

Portfolio Dashboard Template

Card	Fee	Guaranteed value	Actual usage %	Renewal month	Decision
HDFC Regalia	₹2,500	₹8,000	76%	July	Keep
Axis Magnus/)/)/)	₹11,800	₹22,000	55%	November	Negotiate retention
Amex MRCC/)/)/)/)	₹0	₹6,000	40%	March	Downgrade if usage <50%

Update this table quarterly so you’re never surprised by renewal SMSes.

Retention Script

1. Call the premium desk, confirm identity, and ask: “What retention offer can you extend if I renew today?”
2. If they offer bonus points, note expiry conditions; if they offer a fee waiver, get written confirmation over email/SMS.
3. No offer? Request a downgrade to a zero-fee variant and insist on preserving card number/account age if possible.
4. After the call, log the case ID + outcome in your card inventory doc.

Renewal Ritual

• 60 days before fee posts, call issuer and ask for retention offers.
• If they refuse, redeem all points and request product change to a lifetime-free variant.
• Update your card inventory doc so future-you remembers why a card exists.

Next Steps

1. Duplicate this worksheet for every card you hold.
2. Share it with your spouse/finance buddy so decisions stay rational.
3. Track savings from cancelled fees and redirect to investments.