Retail Charge Agreement / Security Agreement

On the record for Retail Charge Agreement / Security Agreement: a 18% purchase APR, filed by Preferred Credit. The purchase rate sits at roughly the 34th percentile of the 4,587 agreements indexed here.

The disclosed terms

Preferred Credit submitted the terms for Retail Charge Agreement / Security Agreement to the CFPB's agreement database; this is what they contain. The filing runs five pages.

Terms captured from the document include a purchase rate, a late payment maximum and a grace period. No figure appears for a cash advance rate, a balance transfer rate and a penalty rate.

Parsing confidence here is medium, so treat the figures as indicative of the filing rather than a substitute for it.

Where the purchase APR sits

18% puts the purchase APR near the 34th percentile across 2,280 agreements, so it undercuts the typical filing.

The arithmetic of revolving

A $1,200 balance left untouched for twelve months accrues about $237 in interest at this purchase rate.

A typical filing in this index would charge about $295 on that balance; this one is roughly $58 a year below it.

Per statement cycle that is on the order of $17.88 on $1,200, which is the number that actually shows up on a bill.

Small balances do not get a proportionally small bill — the agreement imposes a $0.50 minimum interest charge in any month where interest applies.

Treat this as an illustration of what the disclosed rate does, not as a projection of a real account, which would be shaped by payments and by the fees described elsewhere in the filing.

Penalty pricing and late fees

On the fee side, a late payment can cost up to $10, which is around the 6th percentile here.

Grace period and minimum charge

Anyone clearing the statement balance inside 25 days pays no purchase interest at all under this filing. That matches the 25-day median across the corpus almost exactly.

The $0.50 minimum interest charge means the effective cost of carrying a very small balance is far higher than the quoted APR implies.

How it sits in the issuer's own range

This is one of 124 Preferred Credit agreements collected here. Their disclosed purchase rates run from 17.99% to 21.99%, and this one at 18% is more expensive than 53 of them.

What the filing does not tell you

The disclosure parsed here does not state anything about cash advances, balance transfer terms, an annual fee and a foreign transaction fee. Those gaps are gaps in what could be read from the filing, and the PDF may well address them in prose the rate table does not capture.

An agreement filing is not a marketing document. Rewards, perks, welcome offers and eligibility rules are not in it, are not in this dataset, and are therefore not discussed anywhere on this page.

Reading the agreement yourself

Everything here is a reading of the filed agreement, five pages of it, which is linked above and which governs. Terms also change between filings, so the date on the document matters.

In short

The pricing here is middling by the standards of the index — 18% on purchases is near enough to typical. All of this rests on figures read from the filing with less than full confidence, which is reason enough to check the document before relying on any of it.