Schumer's Box

Variable-rate APR

An APR that may change depending on other factors

How we calaculate your balance

Credit card companies can use one of several methods to calculate the outstanding balance on a credit card. The method used is disclosed in this section.

Minimum Interest Charge

Credit card companies often have a minimum interest amount. These charges typically range from $0.50 to $2 per month and are disclosed in this section of the credit card offer.

Schumer's Box

Credit card issuers are required to disclose the terms and fees of credit cards in an easy to read box format

Loss of introductory APR

If the card has an introductory rate, this area will list how the lower introductory rate can be lost.

Introductory Rate

The APR charged during the credit card's introductory period after a credit card account is opened.

For Credit Card Tips from the Federal Reserve Board

This section directs consumers to the Federal Reserve website to obtain more information about credit cards.

Set-up and Maintenance Fees

This section discloses any set-up and maintenance fees for the card, which can include annual fees, account set-up fees, participation fees, and additional card fees.

Transaction Fees

This section discloses any transaction fees for the card, which can include balance transfer fees, cash advance fees, and foreign transaction fees.

APR for balance transfers

This section discloses the interest paid for balance transfers, which is the act of transferring debt from one credit card account to another. Balance transfer fees may apply, even if the balance transfer APR is 0% .

APR for Cash Advances

This section discloses the interest paid for cash advances, such as withdrawing cash from an ATM using a credit card. Cash advance fees may also apply.

Annual Percentage Rate (APR) For Purchases

This section discloses the interest paid for purchases on the card. Multiple interest rates may be listed here, because the final interest rate may depend on the creditworthiness of the applicant.

Penalty APR and When It Happens

This section discloses the penalty APR, as well as the penalty terms that trigger the penalty APR to take effect.

Penalty Fees

This section discloses the penalty fees for the card, which can include late-payment, over-the-limit, and returned payment fees.

How To Avoid Paying Interest On Purchases

This section explains how you can avoid interest charges on a credit card.

Over-the-limit fee

is charged if the account balance goes over the set credit limit.

Late Payment Fee

is charged when a cardholder does not make the minimum monthly payment by the due date.

APR formula

period rate x number of periods per year

Penalty APR

the interest rate charged on new transactions if the penalty terms in the credit card contract are triggered.