Finance charge

Definition of total financial charges

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 […]

Finance charge

Definition of prepaid financing fees

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 […]

Finance charge

Definition of financial charges

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 […]