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Definition
A facility fee is a charge for arranging or maintaining a credit facility, such as a revolving line. It may be a one-off set-up fee or a periodic charge on the available limit, separate from interest on what you draw.
Why it matters
Facility fees are part of the true cost of borrowing and belong in any comparison. On a facility you draw rarely, the fee can outweigh the interest. See loan fees explained and APR.
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