Final answer:
An annual fee is a charge you must pay each year for the right to use a credit card, which is different from finance charges or late fees.
Step-by-step explanation:
The fee you must pay every year to use a credit card is known as an annual fee. This fee is separate from other charges such as a finance charge, which refers to the interest and fees you pay for carrying a balance, and late fees, which are charged if you do not make your credit card payment on time. Credit card companies may charge an annual fee in exchange for additional benefits, rewards, or lower interest rates. It is important to be aware of all the potential fees associated with a credit card, including the annual fee, to manage your credit effectively and avoid unnecessary expenses.