Which fee is added to a monthly credit card bill for borrowing money?

The fee that is added to a monthly credit card bill for borrowing money is known as the finance charge. This charge typically reflects the cost of borrowing and is calculated based on the outstanding balance on the card and the interest rate. When a cardholder carries a balance from one month to the next, the finance charge is applied to that balance, which can vary depending on factors such as the cardholder's creditworthiness and the terms of the credit agreement.

This charge is essentially the interest expense that the borrower incurs for the privilege of using the credit card to access funds. It is important for cardholders to understand how finance charges are calculated, as they can significantly impact the total amount owed if the balance is not paid in full each month.

Other options like service charges, processing fees, and late fees pertain to different aspects of credit card use. For example, a service charge may be imposed for specific services or benefits associated with an account, processing fees apply to transactions or administrative costs, and late fees are penalties for missed payments. However, none of these represent the cost of borrowing money, which is specifically captured by the finance charge.