Understanding the Schumer Box

The video tutorial explains the Schumer Box, a summary of key credit card information required by law. It covers the importance of understanding APR, balance transfers, cash advances, and penalties. The tutorial emphasizes the need to compare credit card offers and make informed decisions. It also highlights strategies to avoid interest and manage fees effectively.

What is the primary purpose of a Schumer Box?

• To offer discounts on credit card purchases

• To list all available credit cards

• To provide a summary of a credit card's features

• To compare different banks

How does a higher credit score affect your APR?

• It increases the APR

• It decreases the APR

• It has no effect on the APR

• It doubles the APR

What is the benefit of a zero percent introductory APR on balance transfers?

• It reduces your monthly payments permanently

• It eliminates all fees

• It allows you to avoid paying interest for a limited time

• It increases your credit limit

When should you consider taking a cash advance on a credit card?

• Only in extreme circumstances

• To increase your credit score

• Whenever you need extra cash

• To pay off other credit cards

What happens to the APR if you make a late payment?

• It stays the same

• It decreases

• It is waived

• It more than doubles

How can you avoid paying interest on your credit card?

• By making minimum payments

• By paying off the entire balance each month

• By transferring balances

• By using cash advances

What is the minimum interest charge if you are charged interest?

• $1.50

• $1.00

• $0.50

• $2.00

What is the fee for a balance transfer?

• 1%

• 2%

• 3%

• 5%

What is the penalty fee for a late payment?

• Up to $20

• Up to $30

• Up to $40

• Up to $50

Which fee is not subject to a minimum $10 charge?

• Balance transfer fee

• Cash advance fee

• Foreign transaction fee

• Wire transfer fee