[header] How to calculate the finance charge on a credit card balance [title] Know what a finance charge is. [step] Credit card terms can be confusing to navigate for many, so understand what a finance charge is and how it affects you. [substeps] A finance charge is what allows credit card companies and lenders to make a profit off of you. 
It's more or less a fee charged for the use of your credit card. Finance charges on credit cards, mortgages and car loans have ranges that depend on a borrower's credit score.