A finance charge is the total cost of borrowing, covering interest and additional fees that lenders charge for providing credit. It applies to credit cards, loans, and other credit products, representing the full cost of accessing borrowed funds. For example, on a credit card, the finance charge includes interest on any unpaid balance. Remember, knowing the finance charge is important for understanding the loan’s total cost. It helps borrowers budget in an effective way and compare credit products to make cost-effective choices.