A finance charge is any fee representing the cost of credit or the cost of borrowing, including loan interest, commitment fees, and prepaid interest. Under the Truth in Lending Act, the finance charge must be disclosed as the total dollar cost of credit.

Regulations exist in many countries that limit the maximum finance charge assessed on a given type of credit - but many of the limits still allow for predatory lending practices, where finance charges can amount to 25% or more annually.