A deferred-interest loan is not a 0% interest loan. We have prepared a reference guide to help you understand your deferred interest loan. Understanding Your Deferred Interest Loan may be found here.
The most important things to understand about a deferred interest loan are:
Your loan includes a "Promotional Period" which is shown in the Truth in Lending Disclosures of your Loan Agreement. This period typically ranges from six (6) to 18 months, but can vary.
During that promotional period, interest is billed to your loan, but you are NOT REQUIRED TO PAY that interest YET.
If you repay the entire purchase balance before the end of the promotional period, all interest billed to your account during the promotional period will be waived. If you do not repay the entire purchase balance before the end of the promotional period, you will be responsible for repaying the interest that was billed to your account during the promotional period and any interest that is subsequently billed to your account.
If you have a deferred interest loan, your monthly billing statement during the promotional period will show you the following information to help you manage your account to avoid paying the deferred interest:
The purchase balance amount to be repaid during the promotional period.
The specific date on which the promotional period expires.
The interest that has been billed to your account.