Financial Math: Credit Cards

The Schumer box is a table that appears in credit card agreements.

What is the main purpose of a Schumer box?

Choose 1 answer:

• To disclose the payment amount and due date of the card.

• To highlight the most important fees and interest rates of the card.

• To show the benefits and rewards of using the card.

The Schumer box is a table that appears in credit card agreements.

What specific information is required to be displayed in the Schumer box?

Choose 1 answer:

• Minimum score needed to qualify for the card

• Rewards and points programs

• APR, annual fees, grace period, and other penalties and fees

The Schumer box is a table that appears in credit card agreements.

Who is required to provide the Schumer box?

Choose 1 answer:

• • All credit card issuers

• • Anyone who is applying for a credit card

• • The federal government

Landon is considering signing up for this credit card to have in case of an emergency, and his main concern is how long he can wait to make a payment towards his balance.

Which row of the Schumer box is relevant to Landon as he picks a credit card?

​ (a)  

• Annual Percentage Rate (APR)
• grace period
• annual fee
• foreign transaction fee

Match the following:

• how long a person has to pay the balance

• grace period

• amount charged when you miss a payment

• late fee

• the annual % of principal you pay

• annual fee

• fee charged for use in other countries

• APR

• fee paid for having the card

• foreign transaction fee

A Schumer box lists the main information about a credit card, such as its APR, grace period, and minimum payment.

What does the term minimum payment mean?

Choose 1 answer:

• It is the smallest amount you can pay each month to keep your account in good standing.

• It is the amount you need to fully pay off your balance each month.

• It is the annual fee associated with your credit card.

Layla will be using this credit card to pay for her prescription glasses. She plans on paying it off in 3 months and wants to pay the lowest amount of interest.

Which credit card is the best choice for Layla?

​ (a)  

• credit card A
• credit card B

Natalie is considering signing up for this credit card, and her main concern is the ability to use the credit card while she is visiting her grandma in Belize.

Which row of the Schumer box is relevant to Natalie​ as she picks a credit card?

​ (a)  

• foreign transaction fee
• Annual Percentage Rate (APR)
• grace period
• annual fee

Isaac is a world traveler that loves to visit different countries around the globe.

Which card offers the best rewards based on his interest?

​ (a)  

• Capital One Venture Card
• Chase Freedom Unlimited Card
• Wells Fargo Active Cash Card

A Schumer box lists the main information about a credit card, such as its APR, grace period, and minimum payment.

What does the term APR stand for?

Choose 1 answer:

• It is the amount of time you have to pay off your balance before interest starts accruing.

• It is the amount of time you have to pay your annual fee.

• It is the yearly interest rate you will be charged on your credit card balance.