The Schumer Box: An Easy Way to Compare Rates and Fees

College life opens a world of possibilities and opportunities. One of these opportunities is the chance to establish a credit history through student loans and student credit cards. College campuses are the recruiting ground for many credit card issuers offering their cards to students. However, before you accept one of these tempting credit card offers, let’s get you acquainted with the Schumer Box.

The Schumer Box is a table of disclosures that include:

  • Annual fee (if applicable)
  • Annual Percentage Rate (APR) for purchases
  • Other APRs (balance transfers, cash advances, default APRs)
  • Grace period
  • Finance calculation method
  • Other transaction fees, such as balance transfers, cash advances, late payments, going over the agreed credit limit, etc.

The Schumer Box, named after Senator Charles Schumer, is a provision under the Truth In Lending Act (TILA) that Schumer created in 1988. The Schumer Box did not take into effect until 2000, 12 years later. The Schumer Box requires that all long term rate information be in at least 18 point type and all other terms and conditions in 12 point type.

Issuing banks have used the same format for the Schumer Box for all of their credit card advertisements and solicitation materials. This makes it easier for you, the consumer, to compare credit card rate and credit card fee information. As a college student, you will most likely receive promotional leaflets and brochures, which you can easily compare by laying the Schumer Box details side by side.

Be aware that it is rare an issuer will call the Schumer Box by this name. The disclosures of the Schumer Box may be listed under such titles or headings as:

  • Disclosures
  • Card at a Glance
  • Fees and Rates
  • Terms
  • Summary of terms

Whatever name the issuing bank applies to the Schumer Box, the table holds the same information in the same format.

College is expensive thus making the credit card solicitations on campus very tempting with the free food and gifts offered up. However, always comparison shop, checking credit card rates and credit card fees. The Schumer Box highlights the information in a clear format. It is a good practice to read and compare the other terms that are not required to be listed in the Schumer Box.

Remember the Schumer Box has the main credit card fees and credit card rate information, but there can be hidden fees and rates not disclosed in the Schumer Box. It would be a good habit to look beyond the Schumer Box for these additional or hidden credit card rates and credit card fees. Be wise in choosing the right credit card for your student lifestyle. Let your college years be free from unnecessary credit card debt by comparison shopping using the Schumer Box.

ShawnTe Pierce