When your credit card issuer blindsides you

It’s easy to feel blindsided when a credit card issuer makes a negative change to your account, such as closing it, raising your interest rate, or reducing your credit limit. Such steps are legal, but may not seem fair. Here’s what you can do to bounce back.

READ YOUR TERMS

Generally, issuers must notify you about significant changes to your account 45 days in advance. But you might not get a heads-up if:

• You already agreed to certain changes. For example, your issuer might not warn you about an interest rate increase due to a hike in the prime rate. That’s because when you applied for a card with a variable interest rate, you agreed to changes like these.

• You’re behind on payments or haven’t used your account for several months.

WEIGH YOUR OPTIONS

Even when granted a reversal, you might have to pay a fee to reinstate lost rewards. Or the reversal could trigger a new credit check.

CONTROL WHAT YOU CAN

• Keep your accounts active.

• If one issuer lowers your limit or closes your account, reduce the outstanding balances on your remaining cards.

• Pay in full and on time. Nerdwallet