Fixed Apr For Life Of Balance Transfer Cards

How To Use The Schumer Box In Credit Card Offers To Find The Best Credit Card Deal

How much do you understand about the credit card offers you get in the mail? Yes, there’s the fancy artwork, lines saying you’ve been “pre-approved” for the card, and that irresistible sign-up incentive which could be cash, a free air ticket or a free hotel stay. But – do you understand what’s inside the Schumer Box in the credit card offer? Oh, and by the way, what’s a Schumer Box?

“Schumer Box? What’s that?” That is the most common reaction I’ve gotten from people when asking them what they knew about the Schumer Box, frequently seen on credit cards offers in the U.S.

The Schumer Box is really just a summary of costs associated with a credit card, and it is the most important part of any credit card offer.

To help consumers better understand credit cards, I’ve decided to write about the Schumer Box, and give you an idea of what this Schumer Box is, and the key things you should look out for when applying for a credit card.

What Is The Schumer Box?

The Schumer Box is actually a table with two columns that appears in every credit card application form in which the fees and interest rates of the credit card are disclosed. This table is usually quite long and is printed in a 12-point font type and 18-point font type or more for long term rates.

The Schumer Box is named after the New York Congressman Charles Schumer who was responsible for pushing through the legislation that required credit card companies to disclose fees and costs of credit cards in their promotional material. The Schumer Box legislation was enacted in 1988, and took effect in 1989. This made it easier for US consumers to know the main terms of a credit card, its fees and various interest rates so that they can make an informed decision when applying for a credit card.

Below is the Schumer Box (click to enlarge) for the Marriott Rewards Credit Card from Chase Benefits Of Having The Schumer Box In Credit Card Application Forms

By having the Schumer Box in all credit card application forms, we as consumers are able to compare terms of different cards and see them together upfront.

The Schumer Box forces credit card companies to disclose important fees in an obvious way so that people can have a general idea of all the fees and interest rates they will have to pay as well as the more important things about the credit card that they are in the process of comparing or applying for.

Credit Card 0 Offers

If currently carry a balance on your credit cards, chances are you are spending hundreds, if not thousands of dollars a year on interest. How much money you waste every year will vary based on how much credit card debt you have, but, according to studies, the average American household carries approximately 00 in credit card debt. At a modest interest rate of 12%, this would translate into 0 a year in interest expenses. If the interest rate is higher, say 16%, carrying a balance on your credit card could be costing you over 00 a year in interest!

0% APR balance transfers provide an excellent solution to consumers who carry debt. With one of these offers, you can enjoy an entire year without interest to help you pay down your current debt and prevent compounding interest from moving your credit card balances into the stratosphere. Here we will discuss the benefits of 0% balance transfers.

The best type of 0% offers are for no fee balance transfers. Buried in the fine print of nearly all credit card applications is the balance transfer fee. This nuisance fee applies to 3% of all balances transferred. Over the past year, balance transfer fees have risen quite a bit. Generally, the maximum dollar amount does not exceed - per transaction. However, a few sneaky companies have put no limit on fees.

Fortunately, with a no fee balance transfer, you can avoid these fees. In some instances, the fee to transfer a balance can add up to 0 or 0 on an 00 balance transfer, depending on how many different cards you need to transfer balances from.

Because there are a limited number of no fee balance transfer credit cards on the market, the next best option for balance transfers is to find a credit card that offers a 0% APR on purchases and balance transfers for 1 year. While the number of these offers is becoming somewhat limited, finding a credit card that offers 0 APR balance transfers as well as a 0 APR on purchases is easier than finding a no fee balance transfer credit card.

To select the best balance transfer credit card, begin by looking at the dollar cap on fees for each transaction. This can be especially helpful if you are simply transferring a balance from one credit card. For example, if you have an 00 balance on a single card, your maximum balance transfer fee will be to , or around 1% of the transaction.

The effect of balance transfer fees grows when you have many small balances on multiple cards, as each card you transfer will be counted as a single transaction with a 3% fee. For example, if you have one credit card with a 00 balance, two credit cards with a 00 balance and a third credit card with a 00 balance, your total balance transfer fee will be 5 or 2.4% of the balance.