A finance charge is the total cost a borrower pays for using credit or borrowing money. It usually includes interest charges, but it may also include fees related to a loan, credit card, or financing agreement, such as service fees, loan fees, or late charges.
For example, if you buy an item using a credit card and do not pay the full balance by the due date, the lender may charge interest. That interest, along with any applicable borrowing fees, makes up the finance charge.
A finance charge is the total cost of borrowing money, including interest and applicable fees, charged by lenders or credit card issuers for using credit or carrying an outstanding balance.
The finance charge is the cost associated with borrowing money and includes both interest charges and fees. The finance charge is the cost of borrowing money that includes interest and fees.
The term "finance charge" refers to the total cost associated with obtaining a loan, which includes the amount of interest and other fees that are payable by the borrower.
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