Glossary
Deferred interest
Deferred interest is a promotion, common on store cards, where interest builds up quietly and is charged back to the purchase date if the balance isn't paid in full by the end of the promotion.
Offers read "no interest if paid in full in 12 months". Pay off every dollar in time and you owe no interest; miss by a dollar and all the interest since the purchase is added at once.
A true 0% intro APR never charges interest for the promotional months, even if a balance remains when it ends.
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Where you’ll see it on RateHerald
Related terms
- Intro APRA low or 0% interest rate a credit card charges for a set time after you open it, on purchases, balance transfers or both, before the regular APR applies.
- APR (annual percentage rate)The yearly cost of borrowing as a percentage: on a credit card, the interest rate on balances you carry; on a loan, the interest rate plus certain fees.
Sources: CFPB: Regulation Z, 12 CFR 1026.16 · CFPB: Regulation Z, 12 CFR 1026.7