What is deferred interest financing and how is it different from a real 0% offer?

Deferred interest is a trap dressed up to look like 0%, common on store cards and 'no interest if paid in full' furniture or electronics financing. With a true 0% intro APR, you only owe interest on whatever balance remains after the promo ends. With deferred interest, if any balance at all remains when the promo ends, you're charged all the interest that would have accrued from the original purchase date, on the full original amount, retroactively.

So missing the payoff deadline by even one dollar can trigger a surprise bill of hundreds in back interest. The CFPB has flagged deferred interest as a common consumer trap. Read the fine print for 'if paid in full' or 'deferred interest' language. If you use one, pay it off comfortably before the deadline, not at the last minute.