The Summary Box
Every credit card company publishes a standard Summary Box in its brochures etc. that gives a concise summary of the main features of the credit card, in a standard format.
The same, easy-to-understand format of the Summary Box has appeared on all credit card marketing materials since March 2004. This is the case whatever the card and whoever the credit card company. It allows you to compare features such as interest rates, fees, charges and other features simply and easily.
You can ask card companies to send you information about the products that appeal to you or you can look at any of their web sites.
The Summary Box Explained
Below is an example of the standard Summary Box which you will find on all credit card marketing material. Roll your mouse over each of the section headings to see a simple explanation of what they are for and what they mean.
SUMMARY BOXThe information contained in this table summarises the key product features and is not intended to replace any terms and conditions. |
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Typical 10.9% APR Variable |
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Other interest ratesThis section shows any introductory rate and the monthly and annual rates. |
Introductory Rate |
Monthly Rate |
Annual Rate |
Purchases |
0% until 1/10/06 |
0.87% |
10.90% |
Cash Advances |
N/A |
0.95% |
12.00% |
Balance Transfers |
0% until 1/10/06 |
0.87% |
10.90% |
Maximum 56 days for purchases if you pay your balance in full and on time. |
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There is no interest free period on cash advances. Interest free period on balance transfers only applies to the introductory period. |
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The periods over which interest are charged are as follows: |
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From |
Until |
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Purchases |
Transaction date |
Statement date |
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Cash withdrawals |
Transaction date |
Statement date |
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Balance transfers |
Date debited to your account |
Repaid in full |
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Credit Card Cheques |
Date debited to your account |
Repaid in full |
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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. |
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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. |
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Minimum repaymentThis 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. |
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Amount of creditThis tells you the minimum and or maximum amount of credit that may be granted. |
Minimum credit limit of £250, maximum credit limit subject to status (or amount if the maximum is known). |
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No annual fee |
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Cash withdrawals - 2% with a minimum of £2.00. Copies of statements - £3.00. Overseas transactions - 2.65% (including purchase of foreign currency and travellers' cheques). |
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Late payment fee - £20.00 Over credit limit - £20.00 Administration fee for returned cheques or direct debits - £10.00 |
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Standard Terms Used in the Summary Box
GENERAL DEFINITIONS |
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Interest |
Money charged for money borrowed. |
Interest Rate |
Money charged for money borrowed, expressed as a percentage of the amount borrowed, usually over one year but could be over one month. |
DEFINITIONS RELATED TO YOUR CREDIT CARD |
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Annual Percentage Rate (APR) |
The interest rate you would pay for purchases, expressed as a percentage of the amount borrowed over one year, including the effect of debiting interest at monthly intervals and other compulsory non-interest costs (for example annual fees). This is a useful way of comparing different types of credit card borrowing. It does not include any default charges such as late payment fees. |
Simple Interest Rate |
The interest rate you will pay, expressed as a percentage of the amount borrowed over a set period, usually one year, but could be one month. An annual Simple Rate does not include the effect of debiting interest at monthly intervals. |
Effective Interest Rate (Compound Interest Rate) |
The interest rate you will pay, expressed as a percentage of the amount borrowed over a set period, usually one year, including the effect of debiting interest at monthly intervals (sometimes known as compound interest). An Effective Rate does not include any fees or non-interest costs. |
Monthly Rate |
The interest rate you will pay expressed as a percentage of the amount borrowed, over one month. |
OTHER DEFINITIONS YOU MAY SEE IN YOUR SUMMARY BOX |
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Variable Rate |
An interest rate which may change from time to time. |
Transaction Date |
The date you made your purchase, cash advance or balance transfer. |
Posting Date |
The date a purchase, cash advance or balance transfer is put on to your account. |
Payment Due Date |
The date, as shown on your statement, by which at least the minimum payment must be received and cleared. This will usually be 25 days (Bank Holidays excepted) from the statement date. |
Statement Date |
The date your statement is produced (as opposed to the date you receive it). |
Introductory Rate |
A special, lower interest rate that we may offer for a specific period from the date your account is opened. |
Outstanding Balance |
The balance that remains on your account at any time unless you have paid in full and made no further transactions. |
Interest-Free Period |
The period of time we may give you to pay the outstanding balance on your latest statement, in full, before we charge any interest. |
Residual Interest |
The interest you pay on the amount you borrowed until you pay off your balance in full. This includes any balances brought forward from the start of the previous month, until they are paid in full. This is similar in principle to the way interest is earned on savings accounts. |
The definitions used in the Summary Box may not be exactly the same as those that are used in your Terms & Conditions. Please refer to your Terms & Conditions for more detail on specific charging information. |
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