Finance Charge
(Definition)- The total dollar amount credit will cost.
More about Finance Charge
Companies which offer credit to consumers need to make money in order to be able to offer their services. One way which these companies make money is with finance charges. Finance charges include interest and other fees which a consumer must pay in order to use credit from a particular company.
Interest is a charge paid for borrowing money. Interest is usually expressed as a percentage of the amount borrowed or interest rate.
When you are shopping around for credit cards companies, look closely at finance charges. If you have any questions or feel you might be able to get a more competitive rate, ask the creditors that you are considering what they can do for you. Many creditors will waive certain fees so you will bring them your business.
The lower the finance charge, the lower your monthly payments will be. This can help you stay within your monthly budget so you can achieve other financial goals.
