A finance charge is the amount of money you pay to use credit. True or false?
Understand the Problem
The question is asking whether the statement about a finance charge being the amount of money paid to use credit is true or false.
Answer
True
The statement is true.
Answer for screen readers
The statement is true.
More Information
A finance charge is indeed the money you pay to use credit, encompassing interest, fees, and any other charges related to borrowing or credit use.
Tips
A common mistake is to only consider interest as a finance charge, but it also includes fees and other costs.
Sources
- What is a Finance Charge? - OppU - OppLoans - opploans.com
- Finance Charge - Overview, How It Works, How To Avoid - corporatefinanceinstitute.com
- What Is a Finance Charge on a Credit Card? - NerdWallet - nerdwallet.com
AI-generated content may contain errors. Please verify critical information
Thank you for voting!
