A finance charge on a credit card is any fee associated with using the card, including interest, penalty fees, annual fees, foreign transaction fees, cash advance fees, and balance transfer fees
. It is the cost of credit, including interest, cash transaction fees, late fees, and any additional charges that may be included under the terms of the contract
. Finance charges can be minimized by paying off the credit card balance in full each month
. They are calculated based on factors such as the annual percentage rate (APR), the amount of debt, and the billing cycle
