Whether you’re shopping for a new credit card or trying to understand the details of an account you’ve already opened, the Schumer box can be a great place to start your research.
This cheat sheet provides the key details about a credit card account, such as the annual percentage rate you might pay to borrow money, and fees a card issuer may charge you.
What is a Schumer box?
Once upon a time, credit card companies used various methods to disclose the annual percentage rates and fees they charged consumers. However, the system was confusing. It could be difficult for consumers to understand the true cost of borrowing money with a credit card. And comparing one credit card to another was even more challenging.
Enter the Schumer box. In the late 1980s, then-Rep. Charles “Chuck” Schumer proposed legislation requiring credit card companies to use a standardized table to summarize a credit card’s rates, fees and other pertinent details. Congress passed the Fair Credit and Charge Card Disclosure Act of 1988 (an amendment to the Truth in Lending Act), and card issuers had to begin using the “Schumer box” in 2000.
Example of a Schumer Box
AMERICAN EXPRESS
Key information you can find in a Schumer box
Credit card issuers follow specific rules when it comes to Schumer box disclosures. Even the font size a card issuer uses has to meet certain standards. For example, the APR for standard purchases must appear in 18-point font. Bold text is also required for certain disclosures. Additionally, there are key details that card issuers must include in the Schumer box to make it easy to understand each credit card’s terms and conditions.
Here is some of the helpful information you can find in a Schumer box:
APR for purchases
The purchase APR is the interest rate a credit card company applies to the purchases you make with your credit card if you don’t pay your full statement balance during the grace period. (Tip: If you follow the first rule of credit card rewards and never carry a balance from one month to the next, you can enjoy the benefits of a credit card without paying interest charges.)
If you’re reviewing a Schumer box that’s part of a credit card application or offer, you might see a range for the purchase APR instead of a single interest rate. The APR a card issuer assigns you will depend on your creditworthiness and other factors.
Related: What is a good APR for a credit card?
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APR for balance transfers
When you use your credit card for a balance transfer, the APR may differ from what you pay for standard purchases. If you take advantage of a promotional balance transfer credit card offer to consolidate debt, your balance transfer APR might be temporarily lower. However, once the promotional APR expires, the balance transfer APR could be equal to or higher than your purchase APR.
APR for cash advances
When you use your credit card for a cash advance, you’ll typically pay a higher APR than for standard purchases. The Schumer box will tell you how much your APR will be on a cash advance. However, it might not make it clear that you’ll probably begin paying interest the same day you request a cash advance instead of enjoying a grace period like you do with the other purchases you make on your credit card.
Penalty APR
If you miss a credit card payment or violate the terms of your credit card agreement in other ways, you risk activating the penalty APR on your account. The Schumer box discloses the (high) cost of your account’s penalty APR if you ever trigger it.
Grace period
If a credit card company offers a grace period, the Schumer box explains how many days you have between the statement closing date and your due date to pay off your statement balance to avoid interest charges.
Related: Important dates to know for your credit cards
Annual fee
A card issuer must disclose the cost of any annual fee it charges (if applicable) in the Schumer box.
Transaction fees
It’s common for credit card companies to charge fees for certain types of transactions like balance transfers, cash advances and foreign transactions. If a card issuer charges these fees, it must list them in the Schumer box.
Penalty fees
Another type of fee that a card issuer might charge you is a penalty fee. These charges include late fees, fees for going over your credit limit, returned payments fees and returned check fees.
Related: What happens if you go over your credit limit?
Where to find the Schumer box
You can check your credit card statement to find the Schumer box for your account if you’re already a cardholder. But if you’re shopping for new credit card offers and want to compare different products online, you can also look for this information on different credit card issuers’ websites.
It’s worth pointing out that locating the Schumer box for individual credit card offers isn’t always easy. But most card issuers provide a link to the information under a phrase like “Pricing & information” or “Rates & fees.”
The following cheat sheet shows the phrase you’ll need to look for on various card issuer websites when you’re looking for the Schumer box to compare credit card offers:
American Express: “Rates & Fees”
Capital One: “View important rates and disclosures”
Chase: “Pricing & Terms”
Citi: “Pricing & Information”
Discover: “See rates, rewards and other cost information”
Bottom line
A Schumer box contains helpful details you can use when shopping for a credit card (or to stay informed about accounts you already have open). Yet there may be additional steps you need to take to choose the best credit card for you. While it’s wise to understand the potential cost of borrowing on a credit card, don’t overlook the importance of comparing the best credit card offers based on credit requirements, rewards and benefits before you apply for a new account.
Mastering your checking account is a crucial piece of the personal finance puzzle. In the mix, there’s a tricky bit that often gets missed: the returned check. So, what’s a returned check, and why should you keep an eye out for it? Let’s dive in and break it down.
Defining a Returned Check
A returned check, often synonymous with a “bounced check“, is a check that has not been honored by a financial institution due to a variety of possible issues. Understanding the check clearance process is key to comprehending why checks might be returned.
When you write a check, you are essentially issuing a promise that your financial institution will pay the designated amount to the recipient’s account. If, for any reason, your financial institution refuses to fulfill this promise, the check “bounces” back to the issuer. This refusal often has more to do with the check writer’s account than the check recipient’s account.
Common Reasons Why Checks Are Returned
Understanding why checks are returned can help you avoid this inconvenient and potentially costly scenario. Here are some common causes:
Insufficient funds: A primary cause for returned checks is insufficient funds in the check writer’s account. If your checking account doesn’t have enough money in it to cover the check amount, your bank or credit union will likely return the check. While sometimes this might result from an honest mistake, such as forgetting to account for an automatic payment, it’s always best to double-check your account balance before writing a check.
Post-dated checks: If a check is cashed or deposited before the date written on it, your financial institution may decide not to honor it and return it instead. While this largely depends on your bank’s policies, it’s always safer to avoid issuing post-dated checks.
Stop payment order: A check can be returned if the check writer issues a stop payment order. Essentially, this order instructs the bank not to pay the check. While a stop payment fee might be incurred, this could be a useful step if you believe there might be a problem with the check.
Closed account: A check drawn on a closed bank account will always be returned. If the check writer’s account has been closed for any reason, no payments can be issued from that account.
Signature mismatch: Financial institutions verify the signature on the check with the one on file at the bank. A discrepancy here might lead to a returned check.
Frozen account: An account might be frozen due to legal issues, ongoing fraud investigations, or other such reasons. In such scenarios, the financial institution will not honor checks drawn on the account.
Invalid check details: Clerical errors like an incorrect account number, routing number, or check number could cause a check to be returned.
The Consequences of Having a Check Returned
Beyond the inconvenience and potential embarrassment of having a check returned, there are several serious consequences to consider:
Bank fees for the sender: If you write a check and there aren’t sufficient funds in your checking account to cover it, you’ll likely face a non-sufficient funds (NSF) fee or a returned check fee imposed by your financial institution. These charges vary but can often be substantial.
Bank fees for the recipient: The check recipient’s bank may also charge a bounced check fee if a check is returned. This can create friction between the recipient and the check writer and potentially jeopardize their relationship.
Impact on your credit score: A returned check can lead to a dip in your credit score if not resolved quickly. In some cases, the recipient may report the bad check to credit bureaus, which can negatively affect your creditworthiness.
Legal consequences: Continuous patterns of writing bad checks can potentially result in legal trouble, with laws varying from state to state. Depending on the amount of the check and the laws in your jurisdiction, it could be classified as a misdemeanor or a felony.
Dealing with a Returned Check as the Check Writer
If you’ve inadvertently bounced a check, you should take immediate steps to rectify the situation. The first thing to do is contact your bank or credit union to understand why the check was returned and discuss the fees you might owe, such as the NSF fee or stop payment fee. Your financial institution is a critical partner in resolving these issues, even if the bounced check was due to an honest mistake.
Next, reach out to the check recipient. Open and honest communication can help prevent misunderstanding and maintain trust. Arrange to pay the amount owed, which could involve writing a new check if you now have sufficient funds in your account, or exploring alternative payment methods if necessary.
Dealing with a Returned Check as the Check Recipient
On the receiving end of a bounced check, it’s essential to contact the check writer directly and inform them about the issue. They may not be aware of the situation, and a simple conversation might be all it takes to get the issue resolved.
However, if the check writer doesn’t cooperate or rectify the situation, there are legal measures you can take to recover your funds. Remember to account for any associated fees you might have incurred, like the bounced check fee.
How to Prevent Returned Checks
Having a check returned is a stressful situation that most people would prefer to avoid. By following these practical tips, you can minimize the chances of facing returned checks:
Maintain sufficient funds: Keep track of your account balance and ensure there are enough funds to cover any checks you write. This involves being aware of any pending transactions that may affect your account balance.
Regularly monitor your account: Stay updated with your checking account activity. Most banks and credit unions provide online and mobile banking services that can help you keep an eye on your account balance and transactions.
Use overdraft protection: Overdraft protection services can prevent bounced checks by automatically transferring funds from a linked account to cover the check amount. While there may be associated fees, they are often less than overdraft fees.
Consider alternative payment methods: Given the evolution of digital banking, there are numerous alternative payment methods you can use. These include online transfers, debit cards, and personal loans, all of which offer different benefits and levels of convenience.
The Pros and Cons of Writing Checks
In today’s fast-paced, digital world, it’s important to understand the pros and cons of writing checks. While checks can be convenient for large transactions, they carry risks such as potential returned check fees and the need to maintain a sufficient balance in your checking account at all times.
Compared to other forms of payments, such as debit cards, electronic transfers, or personal loans, checks require a more active role in personal finance management.
Bottom Line
Understanding the dynamics of a returned check and how to avoid them is crucial for sound personal finance. By ensuring there is enough money in your checking account, actively monitoring your account, and considering alternative payment methods, you can avoid the inconvenience and potential financial and legal troubles associated with returned checks.
Remember that while mistakes can happen, habitual bounced checks can lead to serious consequences. Stay proactive, keep an eye on your account balance, and consider overdraft protection or alternative payment methods. Your personal finance journey is sure to be smoother if you take these precautions.
Interest, $25 Fixed, or Deferred Repayment Options
Rates: Lowest rates shown include the auto debit discount. Fixed – 4.50% APR-14.83% APR and Variable – 5.87%-16.20% APR. Additional information regarding the auto discount:
Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Advertised APRs are valid as of 4/25/2023. No payment penalty: Although we do not charge a penalty or fee if you prepay your loan; any prepayment will be applied as outlined in your promissory note- first Unpaid Fees and costs, then to Unpaid interest, then to Current Principal.
Terms: Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years.
Variable Rate: 5.87% to 16.20% APR (with autopay)
Fixed Rate: 4.50% to 14.83% APR (with autopay)
Effective Date: 4/25/2023
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Bankrate Score
Fixed APR From
4.49-
13.80%
with AutoPay
Loan Amount
$1k- $500K
Term: 5-15 yr
Min. Credit
640
Easy online application!
No origination fees, late fees, and no insufficient fund fees. Period
Flexible repayment options to help you find the right loan for you
0.25% discount when you set up autopay*
0.125% discount for returning borrowers and families with multiple children in college
UNDERGRADUATE LOANS: Fixed rates from 4.49% to 13.80% annual percentage rate (“APR”) (with autopay), variable rates from 5.16% to 13.07% APR (with autopay). GRADUATE LOANS: Fixed rates from 5.25% to 13.60% APR (with autopay), variable rates from 5.79% to 13.07% APR (with autopay). PARENT LOANS: Fixed rates from 6.50% to 13.98% APR (with autopay), variable rates from 6.32% to 13.13% APR (with autopay). For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. Interest rates for variable rate loans are capped at 13.95%, unless required to be lower to comply with applicable law. Lowest rates are reserved for the most creditworthy borrowers. If approved for a loan, the interest rate offered will depend on your creditworthiness, the repayment option you select, the term and amount of the loan and other factors, and will be within the ranges of rates listed above. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Information current as of 04/28/2023.
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Bankrate Score
Fixed APR From
3.65-
16.18%
with AutoPay
Loan Amount
$1k- $400K
Term: 5-20 yr
Min. Credit
640
Compare real, pre-qualified rates from up to 10 lenders in under 2 minutes
No hidden fees, origination fees or prepayment penalties
Checking your rates won’t affect your credit score
Variable rates will fluctuate over the term of the borrower’s loan with changes in the LIBOR rate. The maximum variable rate on the Education Refinance Loan is the greater of 21.00% or Prime Rate plus 9.00%. Rates are subject to change at any time without notice. Your actual rate may be different from the rates advertised and/or shown above and will be based on factors such as the term of your loan, your financial history (including your cosigner’s (if any) financial history) and the degree you are in the process of achieving or have achieved. While not always the case, lower rates typically require creditworthy applicants with creditworthy co-signers, graduate degrees, and shorter repayment terms (terms vary by lender and can range from 5-20 years) and include loyalty and Automatic Payment discounts, where applicable. Loyalty and Automatic Payment discount requirements as well as Lender terms and conditions will vary by lender and therefore, reading each lender’s disclosures is important. Additionally, lenders may have loan minimum and maximum requirements, degree requirements, educational institution requirements, citizenship and residency requirements as well as other lender-specific requirements.
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Bankrate Score
Fixed APR From
4.44-
15.32%
with AutoPay
Loan Amount
$1k- $500K
Term: 5-20 yr
Min. Credit
680
Competitive fixed and variable rates starting at 4.49%*
Four different repayment options
Choice of loan terms (5, 8, 10, and 15 years)*
No application, origination or disbursement fees
Borrow up to 100% of your school’s cost of attendance*
*College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC.. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.
This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. As certified by your school and less any other financial aid you might receive. Minimum $1,000.
Information advertised valid as of 05/01/2023. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
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Income Based Repayment – No Cosigner Required
Get approved in minutes. Pre-qualify without affecting your credit score.
No cosigner required
Get approved in minutes
Pre-qualify without affecting your credit score
Income-based repayment with built-in protections, like deferred payments if you lose your job
No in-school payments. Monthly payments only begin when you land a job grossing at least $30,000 yearly.
Never pay more than the maximum payment cap.
Edly Student IBR Loans are unsecured personal student loans originated by FinWise Bank, a Utah chartered commercial bank, member FDIC. All loans are subject to eligibility criteria and review of creditworthiness and history. Terms and conditions apply.
Loans from $5,000 – $20,000 Example: $10,000 IBR Loan with a 7% gross income payment percentage for a Senior student making $65,000 annually throughout the life of the loan.
Payments deferred for the first 12 months during final year of education.
After which, $270 Monthly payment for 12 months.
Then $379 Monthly payment for 44 months.
Followed by one final payment of $137 for a total of $20,610 paid over the life of the loan.
About this example
The initial payment schedule is set upon receiving final terms and upon confirmation by your school of the loan amount. You may repay this loan at any time by paying an effective APR of 23%. The maximum amount you will pay is $22,500 (not including Late Fees and Returned Check Fees, if any). The maximum number of regularly scheduled payments you will make is 60. You will not pay more than 23% APR. No payment is required if your gross earned income is below $30,000 annually or if you lose your job and cannot find employment.
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Bankrate Score
Fixed APR From
4.45-
14.90%
with AutoPay
Loan Amount
$1k- $350K
Term: 5-20 yr
Min. Credit
650
Lower rates based on your future potential and full financial profile, not just your FICO score
Flexible terms that let you pick your exact monthly payment
Lifetime service provided in-house. Unlike other lenders, we will never pass you off to third-party servicers
No fees for origination, prepayment, or loan disbursement
Two-minute rate check with no obligation at www.earnest.com
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 4.70% APR to 15.15% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.40% APR to 16.67% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan origination loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. Although the rate will vary after you are approved, it will never exceed 36% (the maximum allowable for this loan). Please note, Earnest Private Student Loans are not available in Nevada. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.
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Bankrate Score
Fixed APR From
4.89-
10.39%
with AutoPay
Loan Amount
$1k- $500K
Term: 5-20 yr
Min. Credit
660
2-Minute rate check with no impact on your credit score
No origination fees or prepayment penalties
Network of 300+ community lenders means higher chances for approval and lower rates
Available for private and federal, undergraduate and grad school student loans
0.25% Interest Rate Reduction with automatic payments
One of the largest unemployment protection offers in the market; up to 18 months
Cosigner release available after 12 monthly payments
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender’s credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered from, a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if you meet the lender’s eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
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Bankrate Score
Fixed APR From
4.99-
14.28%
with AutoPay
Loan Amount
$1k- $225K
Term: 5-15 yr
Min. Credit
640
With the most options of any lender, we’ll help you find a great way to pay for college
No application, origination or disbursement fees
Multi-year approval provides a simple way to secure funding for additional years in school†
Interest rate discounts available.
Variable Rate Disclosure: Variable interest rates are based on the 30-day average Secured Overnight Financing Rate (“SOFR”) index, as published by the Federal Reserve Bank of New York. As of May 1, 2023, the 30-day average SOFR index is 4.82%. Variable interest rates will fluctuate over the term of the loan with changes in the SOFR index, and will vary based on applicable terms, level of degree and presence of a co-signer. The maximum variable interest rate is the greater of 21.00% or the prime rate plus 9.00%.
Fixed Rate Disclosure: Fixed rate ranges are based on applicable terms, level of degree, and presence of a co-signer.
Lowest Rate Disclosure: Lowest rates are only available for the most creditworthy applicants, require a 5-year repayment term, immediate repayment, a graduate or medical degree (where applicable), and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Rates are subject to additional terms and conditions, and are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
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Bankrate Score
Fixed APR From
4.48-
12.29%
Loan Amount
$1k- $500K
Term: 5-15 yr
Min. Credit
680
Prequalify to estimate your rate without affecting your credit score,Submit online application in minutes,No application fees, origination fees, or prepayment penalties,Low rates and flexible repayment terms to fit your needs and goals,Student Loan Advisor to guide you through the application process
The interest rate and monthly payment for variable rate loans may increase after closing. Your actual interest rate may be different from the rates shown above and will be based on the term of your loan, your financial history, and other factors, including your cosigner’s (if any) financial history. For example, a 10 year loan with a fixed rate of 6% would have 120 payments of $11.00 per $1,000 borrowed. Education Loan Finance Parent Loans are limited to a maximum of the 10-year term.
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Bankrate Score
Fixed APR From
4.62-
15.91%
Loan Amount
$2k- $200K
Term: 5-20 yr
Min. Credit
Not disclosed
No cosigner required, ever.
No origination fees. No application fees. No late payment fees. No prepayment penalties.
0.25%-1.00% autopay discounts available
Check rate without impacting your credit
Updated disclosure: Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills, Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 5/1/2023 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs require interest-only payments, the shortest loan term, and a cosigner, and are only available to our most creditworthy applicants and cosigners with the highest average credit scores.
Writing checks may not be something you do often. But if you do write a check, itâs important to make sure you have enough money in your bank account to cover it. If you donât, your bank might charge a ⦠Continue reading â
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