Commitment Fee
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Related to Commitment Fee: Management fee, Upfront Fee
Commitment Fee
A fee that a lender assesses on a borrower to keep a credit line open regardless of use. For example, a credit card company may charge a card holder $60 per year to allow him/her to continue to use the credit card. This should not be confused with interest, which is only calculated if a loan is made or a credit line is used.
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