Table of Contents

Schumer Box: What it is and How it Works

By

Updated October 07, 2024

What Is a Schumer Box?

A Schumer box is a table that appears in credit card agreements, showing basic information about the card’s rates and fees. The Schumer box displays information about the card’s cost to consumers, including its 澳洲幸运5开奖号码历史查询:annual percentage rate (APR) for purchases, APR for balance transfers, APR for cash advances, penalty APR, grace period, annual fee, 澳洲幸运5开奖号码历史查询:balance transfer fee, cash advance fee, late payment fee, over-limit fee and returned payment fee. Credit card issuers must provide the Schumer box with all credit♍ card solicitations, whether the offer is online or through the mail.

Key Takeaways

A Schumer Box is a required summary of a credit card's rates and fees that is visible in credit card agreements.
It shows what the card will cost consumers, including the various annual percentage rates (APRs), an annual fee, a cash advance fee, a late payment fee, and a returned payment fee, among other expenses.
The box is named after Senate Majority Leader Charles Schumer (D-NY), a NY Congressman at the time, who was involved in the legislation that required that credit card terms be clearly identified in any advertising material.

Understanding a Schumer Box

If you're trying to compare several credit cards, using the Schumer boxes can help illustrate their similarities and differences. The box is named after New York Senator Charles Schumer—at the time Congressman Schumer—because he was involved in the legislation that created it. That legislation is known as the 1968 澳洲幸运5开奖号码历史查询:Truth in Lending Act, and its purpose was to protect consumers in transactions with lenders and 澳洲幸运5开奖号码历史查询:creditors.

To adequately interpret the information presented in the Schumer box, it’s important to understand what a prime rate is and how it affects credit card rates. The prime rate is the interest rate commercial banks charge their most creditworthy customers. Understanding this can help determine what APR the credit card issuer will likely give based on an individual’s 澳洲幸运5开奖号码历史查询:credit score.

The information presented in the Schumer box does not encompass all the criteria on which one should base a credit card decision. Other items for consideration include how a credit card company's rewards program works, how to earn a sign-up bonus, or how to keep promotional zero percent APR on balance transfers.

Tip

The Schumer box also won’t offer information about other cardholder benefits, like 澳洲幸运5开奖号码历史查询:travel insurance and 澳洲幸运5开奖号码历史查询:return protection. You can find ♒information about those benefits in a separate docum🌌ent.

How to Use the Information in the Schumer Box

Say the Schumer box for one credit card shows that the card’s APR is 8.99%, 10.99%, or 12.99% based on a potential borrower’s creditworthiness. If a potential borrower's credit score is 780, they can safely assume they’ll qualify for the 8.99% APR based on their better-than-average credit score. On the other hand, i🙈f a potential borrower has a less desirable credit score of 660, they’ll likely be subject to one of the higher rates.

The Schumer box also tells consumers the type of method, such as the 澳洲幸运5开奖号码历史查询:average daily balance method, that the creditꦬ card company will use to determine how much interest they owe.

Where Do You Find the Schumer Box?

If you already have a credit card, check the terms and conditions document that came with it or look at your most recent credit statement. You'll see the Schumer Box on the first page. If you're shopping for cards, look at the bottom of a credit card information page for a link like "cardmember agreement," "terms and conditions," or "pricing."

Is the Schumer Box Required by Law?

Yes, under the Truth in Lending Act, credit card issuers must display Schumer boxes in their credit card agreements𓆉.

The Bottom Line

Credit card terms and conditions can seem overwhelming. Schumer boxes aim to simplify 🍃important information so consumers can easily make informed decisions about potential credit cards. Some of the most important details include annual percentage rates (APRs)ও and fees.

澳洲幸运5开奖号码历史查询