What It Means
Deferred-interest promotions-common with store cards and medical financing-advertise zero interest for a set period. The catch: interest accrues from day one and is charged retroactively on the full original purchase amount if any balance remains after the promo expires. This differs from true 0% APR offers, where interest does not accrue at all. Consumers should plan payoff well before the deadline and confirm the structure in writing.
Frequently Asked Questions
Is deferred interest the same as 0% APR?
No. With deferred interest, interest accrues from day one and is charged retroactively if you do not pay in full by the promo end date.