What is a Sumerian box?

When you’re shopping for a new credit card and trying to compare rates and fees, Schumer Box can make your life easier. But what is it? This is simply a standardized disclosure statement required by the federal government that lists card interest rates, annual fees, and other costs in an easy-to-read format.

Knowing where to find the Schumer box and all of its various working parts is an important part of the credit card comparison process, so read on to find out more.

What is a Sumerian box?

Prior to 2000, credit card companies presented their annual interest rates (APR), fees, and other terms of their agreements differently. As a result, it was difficult to compare cards or understand the true cost of using credit.

However, then Congressman Charles Schumer took steps to introduce legislation requiring clear, standardized disclosures about credit card offerings. The law was passed in 1988 and entered into force in 2000.

Since then, credit card companies have been required by law to provide Schumer Boxes with any credit card offers and monthly account statements.

How to use the Sumer box

Before applying for a credit card, you can use the Schumer Box to compare the interest rates and fees on the offers you are considering. You can also check the fees associated with your credit card purposes. For example, if you plan to use a balance transfer card, the most important terms will be the speed of the balance transfer, the length of any initial period, and the balance transfer fee.

Once you have a credit card, the information in Schumer’s box will help you minimize your interest costs and fees. And knowing your interest rate on purchases can help you decide which source of credit to use and how to repay it quickly. Bonus: Being aware of late fees can inspire you to set up automatic payments so you’re never late.

At least once a year, you should check the Schumer box to make sure you’re still getting the best credit card deal. Perhaps you are now eligible for a lower interest rate due to changes in the market, or perhaps your credit usage has decreased. On the other hand, if you no longer roll over your balance from month to month, you may find that you prefer the card that allows you to get cash over the card with the lowest annual interest rate.

What the Schumer Box Tells You About Interest Rates

The interest rate charged by a credit card company tends to fluctuate depending on market forces. Many annual interest rates are prime rate based, meaning they are equal to the published prime rate plus a certain number of points. Credit cards often charge different interest rates for different types of balances:

• Purchase Interest Rates: The interest rate on purchases is often lower than the rate on balance transfers or cash advances. One reason for this is that credit card companies charge fees to merchants for processing transactions.
• Interest rates for balance transferA: The annual interest rate for balance transfers is often higher unless you sign up for a special offer. However, it may be wise to transfer your balance from another credit card if the annual interest rate is lower than the card you are transferring from, or if you want lower monthly payments.
• Interest rates for cash advancesA: If you do not qualify for a special promotional offer, withdrawing cash from your credit card can be costly. Interest rates for cash advances are generally higher than for purchases.
• Penalty betsA: If you miss even one credit card payment, the interest rate on your balance can increase significantly. Even worse, he may stay there until you again demonstrate a track record of being paid on time. The penalty rate in the Schumer cell shows how much you can pay if you miss a payment.
• Minimum interest rateA: The minimum interest rate is the fee that credit card companies charge if you have not paid off your balance in full, but the outstanding balance falls below a certain threshold. This fee is usually 50 cents or $1.

In addition to interest rate information, the Schumer box informs you of your grace period (the amount of time you must pay the balance of your purchases without interest being charged) and other information about how your interest is calculated.

What Schumer’s Box Tells You About Commissions

It is one thing to pay fees that you understand and expect. For example, you might choose a card that pays annually because it also comes with great money back benefits.

However, it’s a completely different matter when you get slapped with high commissions that you didn’t expect. The Schumer box indicates what fees you may be charged:

• Annual FeesA: You can choose from a variety of credit cards with no annual fees. However, some fee cards make it harder to resist by offering great cash back perks, free companion plane tickets, and so on. Just reevaluate regularly to make sure your benefits are still worth more to you than the annual fee.
• Balance Transfer FeeA: Most balance transfer cards charge a balance transfer fee of 3 or 5 percent of your transferred balance, and most have a minimum fee amount of $5 or $10. Be sure to compare these fees to minimize the costs associated with transferring the balance.
• Cash withdrawal feeA: You will be charged a cash advance fee if you use your card to withdraw cash from an ATM or use convenience checks that you mail. You should know how much this fee will cost before you take cash on a credit card, and remember that cash advances do not have a grace period.
• finesA: Late payments can accumulate if you consistently pay your credit card bill after the due date. You may also be charged a fee if, say, you pay a bill by check and it is returned due to lack of funds. If you incur a fine, call the credit card company to see if it can be cancelled.
• Foreign transaction feesA: If you are traveling or shopping in foreign currencies with a credit card, you may be charged a transaction fee abroad. Not all credit cards charge the same fees, and many charge no fees at all. Before traveling abroad, it is worth finding out how much your credit card charges.

Where to find Sumer’s box

If you are already a cardholder, your card’s Schumer box will appear clearly on the credit card agreement you mail. However, you can also find it on the websites of credit card issuers.

If you are currently researching credit cards, you may have to search the website of each card company to see where they publish the Schumer box. It may be listed on the home page for various credit card offers, but you may also need to click outside of the page to find it.

The table below explains what to look for when looking for a Schumer box on various card issuer websites:

Credit card issuer	Where to find Sumer’s box
American Express	Click “Fares and Fees”.
Bank of America	Click “Terms and Conditions”
Barclaycard	Click “See Terms and Conditions for a complete list of fees and charges”.
Capital One	Click “View important rates and disclosures”
chase	Click “Prices and Conditions”.
City	Click “Prices and Information”.
discover	Click “View rates, rewards and other information”.
US bank	Click on the APR offer or interest rate link at the top of the page.
Wells Fargo	Click “Important Loan Terms”.

bottom line

Look for Schumer’s box whenever you’re considering a credit card offer and when you receive a credit card statement. By understanding your total loan cost and comparing it to other options, you can make better decisions to help you reach your financial goals.

Sally Herigstad is a certified public accountant, author, and speaker who writes about personal finance for CreditCards.com. She also writes regularly for MSN Money, Interest.com, Bankrate and RedPlum.com and has been a guest on Martha Stewart Radio and other programs.