Since March 2004 every credit card company has been required by law to publish a concise summary of the main features of the credit card. The layout and format of the Summary Box is the same for each card provider.
The standard format makes it easy to compare features such as APRs, monthly interest rates, fees and other charges before you apply.
The Summary Box information is available from any of the credit card issuer websites.
However the Summary Box must not be regarded as a replacement for the terms and conditions of the card which will be sent to you before signing up. It is important to read the terms and conditions carefully before proceeding to sign up for a particular card.
An example summary box with explanations below.
SUMMARY BOX| | |
| APR APR stands for 'annual percentage rate' - the rate you will be charged if you borrow on your card.
This section of the Summary Box shows you the APR and other rates for purchases, cash advances and balance transfers. If the card company is offering special introductory rates you will find the details and conditions here. |
| Other interest rates This section shows any introductory rate and the monthly and annual rates | Introductory Rate | Monthly Rate | Annual Rate |
| Purchases | 0% until 1/12/05 | 0.869% | 10.90% |
| Cash Advances | N/a | 0.946% | 12.00% |
| Balance Transfers | 0% until 1/12/05 | 0.869% | 10.90% |
| Interest free period Many credit cards have an initial interest free period. This is where you find out how long the period lasts, what type of transactions qualify and the dates between which interest is charged. You will also be told if there are any special conditions. | Maximum 56 days for purchases if you pay your balance in full and on time.
There is no interest free period on cash advances. Interest free period on balance transfers only applies to the introductory period. |
| Interest charging information This section provides more information on the period over which interest is charged on different types of transactions. | | From | Until | | Purchases | Transaction date | Statement date | | Cash withdrawals | Transaction date | Statement date | | Balance transfers | date debited to your account | repaid in full | | Credit Card Cheques | date debited to your account | repaid in full | If you pay the balance in full, the interest charge for the period from the previous statement to the date of full repayment will be debited the following month. |
| Allocation of Payments This explains the different ways your monthly payments are credited against your outstanding balance and the order in which your balance is paid off. | We will apply payments we receive to your account in the following order:
1. Cash withdrawal fee 2. Outstanding interest 3. Transferred balances 4. Purchases 5. Cash See section xx of customer terms and conditions for full details. |
| Minimum repayment This tells you what the lowest amount is, that you must pay in any given month. | Greater of 2.25% of outstanding balance or £5 each month. |
| Amount of credit This tells you the minimum and /or maximum amount of credit that may be granted. | Minimum credit limit of £3000, maximum credit limit subject to status (or amount if the maximum is known. |
| Fees Any monthly or annual fees on your card are listed here. If your card does not have a fee, this box will say 'none' or 'not applicable'. Any conditions will also be shown here. | No annual fee |
| Charges This section lists charges you might incur in using your card. Examples include fees for having cash advances in the UK or abroad, , foreign exchange charges or fees for duplicate statements etc. | Cash withdrawals - 2% with a minimum of £2.00. Copies of statements - £1.00. Overseas transactions - 2.65% (including purchase of foreign currency and travellers' cheques). |
| Default charges Cards might charge you extra for a variety of things if you breach the terms of your agreement such as failing to pay the minimum repayment or going over your limit. These will be listed here. | Late payment fee - £25.00 Over credit limit - £22.00 Administration fee for returned cheques or direct debits - £12.00 |
