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finance charge

   Also found in: Legal, Wikipedia 0.07 sec.
Finance charge
The total cost of credit a customer must pay on a consumer loan, including interest.

Finance charge. The finance charge, or total dollar amount you pay to borrow, includes the interest you pay plus any fees for arranging the loan.

A finance charge is expressed as an annual percentage rate (APR) of the amount you owe, which allows you to compare the costs of different loans.

The Truth-in-Lending Law requires your lender to disclose the APR you'll be paying and the way it is calculated before you agree to the terms of the loan.


finance charge
The total of all direct and indirect costs associated with obtaining credit.


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These 0 APR credit cards offer three months, six months or sometimes 12 months of no finance charges on balances that are transferred and sometimes also on any purchases that you make during the introductory period.
Also, find out the specific date when the no interest period expires (month and day) so that you are sure to pay off any money you borrow during that time before the finance charges start accruing.
They apply a finance charge to this months balance, then next month if you haven''t paid the balance off, last month''s interest becomes part of this month''s principal balance, which in turn they apply the finance charge to.
 
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