BANKING AFFAIRS

Detailed explanation-1: -A finance charge is often an aggregated cost, including the cost of carrying the debt along with any related transaction fees, account maintenance fees, or late fees charged by the lender.

Detailed explanation-2: -The finance charge is the cost of consumer credit as a dollar amount. It includes any charge payable directly or indirectly by the consumer and imposed directly or indirectly by the creditor as an incident to or a condition of the extension of credit.

Detailed explanation-3: -A finance charge is the cost of borrowing money and applies to various forms of credit, such as car loans, mortgages, and credit cards. Common examples of finance charges include interest rates and late fees.

Detailed explanation-4: -The most common type of finance charge is the interest that you’re charged if you don’t pay off your credit card balance in full every month. Most other fees are usually flat fees, such as annual fees or late fees. Some credit cards may charge flat fees for cash advances or balance transfers, too.

Detailed explanation-5: -In financial accounting, interest is defined as any charge or cost of borrowing money. Interest is a synonym for finance charge.