Business and Personal Finance Dictionary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

• FINANCE CHARGE
  
  The interest you pay on money you borrow, plus certain fees for arranging the loan, is known as a finance charge. The term also refers to the interest you owe on outstanding balances on your credit cards. A finance charge is expressed as an annual percentage rate (APR) of the amount you borrow, and it can be calculated in a number of different ways. 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.
  
  Back