All termsGlossary
What is a deferred interest?
Deferred interest (definition, opens in a new tab)
Deferred interest is a promotion where interest still builds up in the background at the regular rate. If the whole balance is paid before the promotion ends, none of it is charged. If any balance is left, even a small one, all of that interest is added at once. A true 0% offer doesn't work this way.
Example
$1,200 on a 6-month deferred-interest offer with a 24% regular APR (definition, opens in a new tab), paid down $100 a month, still has $600 owed at the end. That adds $115 of interest all at once.
Where does this site use it?
Related terms
General education, not financial advice.