Some things you need to know about credit cards

Every time you open one credit card, you will receive a lengthy Card Ownership Agreement, setting out the various terms of your account. Most people just skim through this paperwork, as there is a lot of jargon and fine print.

But as the emitters of Credit cards waive payments, waive late fees, and temporarily pause payments to help borrowers stay afloat during the coronavirus, you may want to review your agreements more closely to find out what other changes may be made without your knowledge.

Pursuant to their federal agreements and regulations, issuers of Credit cards they may add, modify or remove benefits or services at their discretion. Your card issuer may change many of its features, such as reward rates and interest rates, for a variety of reasons.

Here are six benefits and terms that issuers of Credit cards can change without notice and how you can potentially avoid these situations.

-These changes of benefits and terms do not require prior notification
-Reward rate and redemption changes
-Increase or decrease the credit limit
-Increase or decrease in the variable annual interest rate for each preferential interest rate
-APR penalty that takes effect
-Promotion rate ends
-Eligible account closures

1. Reward Rate and Redemption Changes
many people open Credit cards for rewards in common spending categories like dining, groceries, gas, and travel, as well as various redemption options like statement credits, gift cards, and travel reservations. However, the reward rates and redemption options available may change at any time.

Read More: Ways to pay your credit cards amid the pandemic

2. Increase or decrease of the credit limit
When you open a credit card, you will be assigned a credit limit based on a number of factors, including a review of your credit report and credit score, your income, and your payment history. This amount can be from a couple hundred dollars to thousands, but it may not always be the same.

You have the option of requesting a credit limit increase, and sometimes your issuer may automatically increase your line of credit. Your issuer also has the right to lower your credit limit at any time, without notice.

Reasons for a lowered credit limit may include missing or late payments and/or overspending or underspending your Credit cards You may also notice that the credit limit decreases during a recession, as banks choose to limit the potential losses of cardholders who default on their debt.