Have you noticed the box or table at the bottom of your credit card statements which has all of your rates, fees, terms, and conditions? It’s actually called a Schumer Box and is named after Charles Schumer, the New York Congressman, who was responsible for the legislation that required credit card companies to provide an easy-to-read table that discloses the rates, fees, terms, and conditions.
The box spells out your credit card agreement so you can easily understand it. It is a new requirement under the Federal Truth in Lending Act (TILA). Credit card companies must now use the same standardized format so consumers can easily compare rates and fees and hopefully understand how much having credit card debt actually costs them.
Now there is no more fine print…literally. The box also prints the long-term rate information in 18-point type or greater and the remaining terms of the credit card agreement in at least 12-point type.
Key Information From Credit Cards Displayed In The Schumer Box
- Annual Percentage Range (APR) for purchases (or interest rate) – may include introductory and long-term rates
- Other APRs – interest rates for balance transfers, cash advances, default, etc.
- Variable rate information (if applicable) – explaining that your interest rate can (and will) change.
- Grace Period – the period of time after your bill when interest charges are not yet applied on your debts.
- Finance calculation method – applies if the credit card balance is not paid in full each month.
- Finance Charges – the minimum amount charged if a balance is carried over month to month.
- Annual Fee (if applicable)
- Other fees – transaction fees, balance transfers, cash advances, late payments, over-limit, etc.
An Example Schumer Box And Where To Find Information
The box or table at the bottom of your credit card statements which has all of your rates, fees, terms, and conditions is called a Schumer Box and helps you understand how to read your credit card statement.