The Federal Truth in Lending Act (TILA) requires credit card companies to disclose certain information in any offer they make to you. In addition, the "Schumer Box", named after Sen. Charles E. Schumer who sponsored the provision to the TILA that requires it, ensures that credit issuers disclose this important information to you in a tabular form that is easy to read and understand.
If there is anything you must review and understand before applying for a new credit card, it's the Schumer Box. Be sure to identify the most important terms of the agreement such as promotional and regular APRs, finance charges, minimum payments, annual fees, and the method used for computing your outstanding balance. You can locate the box on the back of the credit card solicitation, on a separate sheet of paper enclosed in the envelope, or via a hyperlink entitled something similar to "Important Disclosures" or "Terms and Conditions" when applying for a credit card online.
