FINE PRINT: Schumer Box

1. What is the APR (annual interest rate) on this card for purchases made during the first six months that a cardholder has this card?

• 0%
• 15.24%
• 23.24%
• 25.24%

2. Jordan gets confused and uses his credit card to get $40 in cash from an ATM instead of using his debit card! Based on this agreement, what is the impact of this decision?

• There is no impact since credit card and debit card terms tend to be the same.
• A $10 cash advance fee will be charged ONLY.
• An A.P.R. of 25.24% will be applied on the $40 until it is paid back ONLY.
• A $10 cash advance fee will be charged AND an A.P.R. of 25.24% will be applied on the $40 until it is paid back.

3. Assume that Louisa carried an average balance of $1,000 from her credit card purchases over the past year. The APR on her credit card for the past year was 19.99%. Approximately how much interest would Louisa have paid over the course of the year?

• She would have paid interest charges of $2,000.
• She would have paid interest charges of $20.
• The credit card company would have paid Louisa $20
• She would have paid interest charges of $200.

4. After the introductory period, all consumers who have this Platinum Card will...

• Pay the same APR
• Qualify for an APR based on their creditworthiness
• Pay the Penalty APR of 30.24%
• Be charged an Annual Fee

5. As you will see from this agreement, there are different APRs applied based on how the credit card is used. Which transaction type has the highest APR?

• APR triggered by a late payment
• APR applied on Purchases made during the Introductory Period
• APR applied to a Balance Transfer
• APR applied to a Cash Advance

6. Devon forgets to pay his credit card bill for three months. Which of the following statements is TRUE?

• A Late Payment fee will not be charged to his account.
• A Balance Transfer fee will be charged to his account.
• His APR (annual interest rate) will rise to 30.24% until he pays back the amount he owes.
• His APR will rise to 30.24% and stay there until he makes six consecutive minimum payments .

7. Tamara goes on a spring break trip with her school to visit historical sites in Italy. She purchases $200 of souvenirs while on the trip. She gets back to the U.S. and opens her credit card statement. What will be the balance in her account, assuming she had a zero balance prior to making these purchases and didn't make any other purchases?

• $0.00
• $200.00
• $206.00
• $6.00

8. All of the following actions lead to the payment of a credit card fee EXCEPT...

• Using your credit card to get cash from an ATM.
• Using your credit card to purchase items in a foreign country.
• Paying your credit card bill ten days after the Due Date.
• Paying your credit card bill in full and on time every month.

9. Josie decided to get this Platinum card since she saw the ads touting the "0% A.P.R. Platinum. Sign Up Now." After reading this agreement, which of the following statements is TRUE?

• Her APR will change after six months and be between 15.24% to 23.24% assuming that she has been making on-time payments during those first six months.
• She will not pay interest on any of the purchases she makes on this credit card for the first year.
• All her purchases on this credit card are FREE for the first six months.
• All her purchases on this card are FREE.

10. Which of the following statements is TRUE?

• Assume that Josie has had this credit card for a year. The APR on her card will remain the same as long as she has the card.
• If Josie misses a payment during the Introductory Period, her late payment fee will be waived for this period since she is a new customer.
• Assume that Josie only uses her credit card to make purchases. She pays the balance on her credit card in full and on time every month. As a result, she pays no interest to the credit card company.
• Josie pays an annual fee to use this credit card.