BANKING AFFAIRS

Detailed explanation-1: -A finance charge definition is the interest you’ll pay on a debt, and it’s generally used in the context of credit card debt. A finance charge is calculated using your annual percentage rate, or APR, the amount of money you owe, and the time period.

Detailed explanation-2: -What is Cost of Credit? Cost of Credit is the total amount you will pay less the amount of the original mortgage value. The difference between the two includes interest and any other fees and charges. The faster and sooner you reduce your mortgage, the less interest you’ll pay.

Detailed explanation-3: -Definition. The cost of credit refers to the expenses charged to the borrower in a credit agreement. This may include interest, commission, taxes, fees, and any other charges issued by the lender.

Detailed explanation-4: -In financial accounting, interest is defined as any charge or cost of borrowing money. Interest is a synonym for finance charge.

Detailed explanation-5: -Finance charges are defined as any charge associated with using credit. Credit card issuers use finance charges to help make up for non-payment risks. You can minimize finance charges by paying off your credit card balance in full each month.