When it comes to credit cards and other financial products, it’s sometimes easy to overlook the fine print or gloss over confusing or unfamiliar terms. Consider “deferred interest.”
Deferred interest delays finance charges for a specified time period. This frees you from paying interest as long as the purchase is paid off during the special financing window. Deferred-interest options can be offered on credit cards and loans, plus in-store, home repair and medical financing.
If the amount is not paid off by the date required, you may be charged for all the interest accumulated from the date of purchase. This can be a significant amount of money. With interest-free financing offers, find out first if there’s a deferred-interest provision. It can counteract the intended savings if you don’t understand how it works.