Month: March 2017

Minimum financing costs: an overview A minimum finance charge is a monthly credit card fee that a consumer may be charged if the accumulated balance on the card is so low that less than the minimum interest would otherwise be due for that billing cycle. Most credit cards have a minimum finance charge of $ […]

What is the total finance charge? Finance charges are the total amount of money a consumer pays to borrow money. This can include credit on a car loan, credit card, or mortgage. Ongoing finance charges include interest rates, set-up charges, service charges, late fees, etc. The total finance charge is typically associated with credit cards […]

What is a prepaid finance charge? The term prepaid finance charge refers to an upfront cost associated with a loan agreement and must be paid in addition to standard loan payments. These expenses are not part of the amount requested and are considered prepaid. These expenses are usually paid by the borrower when closing a […]

What is a finance charge? A finance charge is a costs billed for using credit or extending existing credit. This can be a flat fee or a percentage of borrowings, with percentage-based finance charges being the most common. A finance charge is often an aggregated cost, including the cost of debt as well as related […]

What is a financial charge? Finance charges are fees charged for using a loan or extending an existing loan. This can be a fixed fee or a percentage of borrowings, with percentage-based finance charges being the most common. Finance charges are often an overall cost, including the cost of carrying the debt as well as […]