Credit Card Agreement
The contract between you and your credit card issuer that outlines the terms of your account, including interest rates, fees, grace period, and cardholder rights. Federal law requires issuers to provide a Schumer Box — a standardized table of key terms — making it easier to compare cards.
Related guides
- Full credit & FICO® glossary
Browse all defined terms by category.
- Annual Percentage Rate (APR)
The yearly cost of borrowing money, expressed as a percentage. APR includes interest plus certain fees, giving you a more complete picture of a loan's cost than the interest rate alone. For credit cards, the APR is the interest rate charged on balances carried month-to-month.
- Annual Fee
A yearly charge for holding a credit card, regardless of use. Premium rewards cards (with travel benefits, cash back, etc.) often charge annual fees ranging from $95 to $550+. Secured credit cards sometimes charge annual fees. Calculate whether the card's benefits exceed the fee before applying.
Frequently Asked Questions About Credit Card Agreement
What does Credit Card Agreement mean?
The contract between you and your credit card issuer that outlines the terms of your account, including interest rates, fees, grace period, and cardholder rights. Federal law requires issuers to provide a Schumer Box — a standardized table of key terms — making it easier to compare cards.
Is Credit Card Agreement important for my FICO® score?
Understanding Credit Card Agreement helps you manage your credit profile more effectively, which in turn supports a stronger FICO® score.