Finance charge
The total dollar cost of a loan — every dollar you pay beyond the amount you borrowed.
What "finance charge" means
The finance charge is the total cost of credit in dollars: interest plus fees, everything you repay above the principal. On a $500 tribal loan repaid at 725% APR over ten months, the finance charge can exceed $2,400 — several times the amount borrowed.
Federal Truth in Lending rules require the finance charge and APR to be disclosed, but complaints about tribal lenders often describe getting neither before signing. Seeing the finance charge as a dollar figure is the fastest way to feel how expensive a loan really is.