Credit cards that emphasize causes that people care about are gaining traction
Everyone with a credit card needs to know what a Schumer Box is. Bankrate explains.
What is a Schumer Box?
The Schumer Box is an easy-to-read table disclosing the terms, rates and fees charged by credit card issuers under the Truth in Lending Act. The table contains boxes that disclose critical aspects of credit card agreements, including the annual percentage rate, variable-rate information, annual fees, foreign transaction fees and minimum finance charges.
In the Schumer Box, all credit card issuers must clearly disclose long-term interest rate information in 18-point type with the rest of the information in 12-point type.
In 1988, then-Rep. Charles Schumer of New York sponsored a bill known as the Fair Credit and Charge Card Disclosure Act requiring credit card issuers to disclose all information, regarding the interest rates and fees on lines of credit they offer to consumers.
In 2009, the Credit Card Accountability, Responsibility and Disclosure Act took effect. Also known as the CARD Act, the law helps consumers fully understand their credit card costs, including balance obligations, over-limit fees and how long it will take consumers to pay off their balances by only making the minimum monthly payment.
For consumers, the Schumer Box provides enough information to compare credit card offers. Most importantly, the Schumer Box outlines the difference between promotional and regular annual percentage rates, or APRs, and if the credit card issuer waives the annual fee for only the first year. Consumers also receive information on deferred interest and penalty rates.
Schumer Box example
The Schumer Box discloses any penalty APRs and when those penalties apply. The disclosures also include the interest rates on purchases, cash advances and balance transfers. Consumers see information on how to avoid paying interest on their credit cards and minimum interest charges. Updated information includes tips from the Consumer Financial Protection Bureau, or CFPB, and the factors to consider when applying for a credit card.
More From Bankrate
3 min read Jun 24, 2022
The Citi Double Cash earns the most rewards, but the Capital One Quicksilver offers some additional benefits that might be more valuable to many cardholders.6 min read Jun 24, 2022
Here’s how to avoid a financial crisis while you’re recovering from serious illness.5 min read Jun 24, 2022
Our comprehensive guide aims to keep you up-to-date on the best credit card bonus offers and seasonal promotions.9 min read Jun 24, 2022
Your first credit card is the gateway to your financial life as a young adult.6 min read Jun 24, 2022
Your statement balance reflects how much is due at the end of a billing cycle, while your current balance is how much you owe at any given time.4 min read Jun 24, 2022
The main difference is that the Blue Business Cash offers rewards as cash back, while the Blue Business Plus offers rewards points.5 min read Jun 24, 2022
There are alternative ways to build credit, like becoming an authorized user, opening a store card or reporting your utility payments each month.4 min read Jun 24, 2022
Here’s a look at how to redeem credit card rewards — points, miles and cash back.5 min read Jun 24, 2022