Credit Card Fine Print

Understanding the Schumer Box

Credit cards have become a necessary financial tool for everyone. However, other than attentively paying on the balance every month, or paying it off, have you ever taken the time to really read the terms and conditions that go with owning that piece of plastic?  The fine print for a credit card includes important details about your account. The Schumer Box includes all those details.

Named after legislation introduced by U.S. Senator Chuck Schumer, this information is a legally required table of rates and fees that, since 1988, must be disclosed to prospective cardholders and is provided to existing cardholders in their cardmember agreement. The purpose of the Schumer Box is to make it easy for consumers to compare credit card offers and understand the key terms and conditions of each offer.

Here are some key terms that are included in the Schumer Box:

• Interest rates: The interest rate, also known as the annual percentage rate (APR), is the rate at which the credit card issuer will charge interest on any outstanding balance on the card. The fine print should specify the APR for purchases, balance transfers, and cash advances.
• Fees: The fine print should list any fees associated with the credit card, such as an annual fee, late payment fee, balance transfer fee, cash advance fee, and foreign transaction fee.
• Rewards program: If the card offers a rewards program, the fine print should detail the program, including the types of rewards available, how to earn rewards, and any limitations or restrictions on using rewards.
• Credit limit: The fine print should specify the credit limit for the card, which is the maximum amount of credit that the issuer will allow you to use.
• Balance Calculation Method: Explains how the credit card company calculates the balance on the card, which can affect the amount of interest you will be charged.
• Grace period: The grace period is the time between the end of a billing cycle and the due date for the payment. The fine print should detail the length of the grace period and any requirements for maintaining it, such as paying the balance in full each month.
• Credit score requirements: The fine print may specify the credit score requirements for approval for the card, which can give you an idea of your likelihood of being approved.

It's important to read the fine print carefully before applying for a credit card to understand the conditions of using the card. If you have any questions or don't understand something in the fine print, do not hesitate to come into a branch or give us a call for clarification.

Example of a Schumer Box.