Reading a Schumer Box

Every credit card offer must display a standardized table - the Schumer box - listing the APR, annual fee, grace period, and penalty charges in one consistent format. It exists because Congress decided in 1988 that card terms had to be comparable at a glance.

Why it matters

Marketing sells the front of the offer; the Schumer box is the truth table on the back. Sixty seconds in that table beats every headline rate and bonus.

Key facts

• The box must show the purchase APR (including ranges for variable rates), the annual fee, and the grace period for avoiding interest.
• Penalty APRs - often near 29.99% - and what triggers them (usually a payment 60+ days late) are listed there.
• Balance transfer and cash advance APRs and fees are separate lines; cash advances usually have no grace period at all.
• The CARD Act requires 45 days' notice before key terms change on an existing account.

In practice

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