Credit card summary boxes will be easier to understand for consumers

From June of this year credit card applicants and customers should find that the credit card summary boxes on the application forms and marketing materials of credit card providers is far easier to understand.

This is due to changes that have been imposed with the aim of making the information in these boxes clearer and more digestible for consumers who are otherwise left confused about the jargon used in the boxes and the confusing layout of the information.

The aim of the summary boxes that are used by credit card providers is to allow the consumer to see the key features of the credit card at a glance, and this includes the APR charged on the card, the fees associated with the card, and other key information that would help a consumer determine whether this was the right card for them.

However, the confusing layout of the information and the way in which is was worded often resulted in consumers being unable to understand the information and therefore being unable to make an informed choice over which card to choose.

Sandra Quinn, director of corporate communications at industry body Association of Association for Payment Clearing Services stated: “Recent research undertaken by the credit card industry uncovered that only an astonishing quarter of credit card holders admit to knowing the APR on their card. This means that a lot of people may be borrowing without knowing their charges, if they don’t pay off their bill in full.”

She went on to state: “We’ve always encouraged cardholders to make sure that they shop around so that they have the card best suited to the way they use credit cards. By improving the Credit Card Summary Box, the credit card industry has made this crucial information clearer and more accessible, making it even easier to do this.”

Tags: credit card summary box, industry body association, Credit Cards, Marketing, Payment systems, consumer, shop