Credit cards offer convenience but come with complexities that can affect your financial health. Understanding the various terms and conditions can save you from unexpected changes. Credit card issuers have the discretion to alter terms like interest rates, credit limits, and perks without significant prior notice. For major changes such as fee and rate increases, a 45-day notice is typically required. Variable interest rates can fluctuate quickly, especially with changes in the federal interest rate. Issuers can also close your account or adjust your credit limit abruptly. On a positive note, some issuers may negotiate lower interest rates or offer hardship plans for loyal customers facing difficulties. Additionally, the promotional benefits like 0% APR can be voided by late payments, and rewards points might vary in value depending on the redemption method. Understanding these aspects can help you manage your credit card more effectively.
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