What Is a Credit Card Finance Charge and How Can I Avoid Paying It?

Finance charge simply refers to the interest that you are charged on a debt that you owe, and is generally used in the context of credit card debt. A finance charge is calculated using your annual percentage rate, or APR, along with the amount of money you owe and the time period that is being considered.

Technically speaking, a finance charge is any charge that is included in the cost of borrowing money, such as accrued interest as well as fees related to borrowing the money, such as transaction fees. In practice, however, a finance charge is typically a synonym for "interest charge," although in some cases it can include late fees or other charges.

With credit cards, your finance charge is the interest that has accrued during that particular billing cycle on the money that you owe.

Source: Fool.com