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How to read your credit card's terms (the Schumer box)

By CardTerms editorial team · 2026-06-26

In short: Every US credit card comes with a standardized disclosure (the 'Schumer box') listing the purchase APR, intro APR, balance-transfer and cash-advance APRs, and key fees. The purchase APR and annual fee matter most for everyday use; the cash-advance APR and penalty APR are the traps.

Every US credit card offer must include a standardized rate-and-fee table — the Schumer box, required by the Truth in Lending Act. The CFPB collects these same terms in its Terms of Credit Card Plans survey. Here’s how to read yours.

The APRs

TermWhat it isWatch out for
Purchase APRRate on everyday spending you carry past the due dateThis is the one that matters most if you revolve a balance
Intro / promo APRA temporary low (often 0%) rate for a set number of monthsReverts to the standard purchase APR after the promo ends
Balance transfer APRRate on debt moved from another cardUsually a transfer fee of 3-5% applies
Cash advance APRRate on ATM/cash withdrawalsOften the highest APR, with no grace period - interest starts immediately
Penalty APRA higher rate triggered by a late paymentCan apply for months; avoid by never paying late

Most cards are variable: the APR equals an index (typically the Prime Rate) plus a margin, so it moves when the Fed moves rates.

The fees

Use the surveyed data to sanity-check an offer

Before you apply, look up the issuer on CardTerms to see the surveyed purchase APR range and fees it reported to the CFPB. If an offer’s rate is at the very top of that range, your credit tier or the specific card is on the expensive end. Compare issuer types on the average-APR hub, and remember credit unions are capped at 18%.

Sources

CFPB Terms of Credit Card Plans data dictionary and survey. General information, not financial advice.

Frequently asked questions

What is a Schumer box?

It's the standardized table of rates and fees that the Truth in Lending Act requires every US credit card offer to include - named after Senator Chuck Schumer, who sponsored the rule.

Which APR should I pay attention to?

The purchase APR, since it applies to everyday spending you don't pay off in full. Watch the cash-advance APR (often the highest, with no grace period) and any penalty APR triggered by a late payment.

What's the difference between a variable and fixed APR?

A variable APR moves with an index (usually the Prime Rate) plus a margin, so it changes when the Fed moves rates. A fixed APR stays put unless the issuer formally changes it. Most US cards today are variable.

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Last updated: 2026-06-26