Business, Legal & Accounting Glossary
Finance charges are the interest charged on the unpaid balance of your credit card account.
A finance charge is any charge levied for the use of credit.
For example, credit cards carry a finance charge, calculated as a percentage of the amount borrowed. A finance charge is levied periodically, often once a month. The finance charge is prorated, based on the annual percentage rate of the account. Automobile loans, home mortgages, business loans, and other uses of credit are subject to finance charges. With some accounts, an additional finance charge will be applied when payment is late. A lender is legally allowed to change the finance charge for any of several reasons, e.g., the borrower being high risk. Under the federal Truth-in-Lending Act, the terms of finance charges must be spelt out in writing.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Finance Charge are sourced/syndicated and enhanced from:
This glossary post was last updated: 5th August, 2021 | 18 Views.