Should You Get a Deferred Interest Credit Card?

A deferred interest credit card can sound like a great idea—make a large purchase now, such as an appliance or furniture, and pay it off over time—but consumers may find that they end up being charged with interest fees they didn’t expect when they originally signed up for these deals.

If you signed up for a store’s deferred interest credit card program and were later charged an interest fee, you may be able to participate in a class action lawsuit investigation.

What is a Deferred Interest Credit Card?

Many stores have begun offering a deferred interest credit card to their customers. When you’re in a store, it’s easy to make snap decisions based on advertising. It can be even easier with a deferred interest credit card, which is advertised as having “no interest if paid in full within 12 months” or even as having “0% intro APR.” Because of statements like this, customers can assume they won’t pay any extra for their purchase. Especially if they intend to make a large purchase, this can seem like a no-brainer, and they take the deal.

But many consumers may not realize that they can still end up paying large sums in interest. Some consumers complain that stores misleadingly advertise deferred interest credit cards as much more advantageous than it is in reality. Ultimately, a deferred interest credit card may benefit the retailers significantly more than it benefits customers.

Customers may even be left with huge interest charges, even if they were promised zero percent interest. Some customers have found themselves unexpectedly owing hundreds of dollars in charges after the promotional period is over.

Essentially, if a customer still has a balance when the promotional time is up, a deferred interest credit card charges all the interest that has built up over the promotional period, which doesn’t actually hit the customer until the end of the advertised promotional period (typically six to 18 months later). Deferred interest built up in the course of several months to over a year can amount to hundreds of extra dollars in charges. In some cases, customers may be facing interest rates as high as 30 percent on these “0% interest” store credit cards.

More and more people are using a deferred interest credit card to make purchases, and, according to the Consumer Financial Protection Bureau, more than a third end up paying 150 percent of the balance—half again what they originally paid for the purchase.

Joining a Deferred Interest Credit Card Lawsuit Investigation

A number of retailers offer a deferred interest credit card. Some of the major retailers involved in the investigation for zero percent interest store credit cards deceptive practices include Apple, Cabela’s, Disney, Dressbarn, Sears, and more.

If you signed up for a deferred interest credit card during a 0% interest promotion but have since been charged an interest fee, you may be able to join a class action lawsuit investigation.

Join a Free Zero Percent Store Credit Cards Class Action Lawsuit Investigation

If you were unexpectedly faced with high interest charges on a store credit card even though you made the purchase on a 0% interest store branded credit card, you may be entitled to compensation.

Learn More