Are you one of the 84% of undergraduates who have at least one credit card? If so, do you know what your card's annual percentage rate for purchases is? What about your card's penalty APR and when it applies? If these words seem as foreign to you as your upcoming Latin test, you may want to read further to ensure you don't end up among the graduating seniors, owing an average of $4,100 in credit card debt.
Credit cards are not inherently dangerous; in fact, they can be a smart way to develop responsible spending habits and build a good credit score. Nonetheless, a little education can go a long way.
The Schumer Box, now required on any promotional material for credit cards, seeks to summarize and streamline the details of credit card agreements, making it easier to understand your obligations and compare prospective cards.
Despite it's good intentions, the Schumer Box can at times appear confusing or unclear. Thankfully, the helpful folks at Nerd Wallet have summarized the information presented in the Schumer Box in a the helpful infographic below. For a better view, click here! Whether you're considering applying for your first credit card or you simply want to better understand the terms of your current card, this infographic is a must-read!
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