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Understanding Deferred Interest Financing
How it works and what you need to know

What is Deferred Interest Financing?

Deferred interest financing lets you pay for a purchase over time. It also gives you the ability to avoid interest on such purchases. To avoid the interest, you must repay the full purchase balance within the stated time period.

This is why we often advertise deferred interest financing as “No Interest if Paid in Full.”

If you do not pay the full purchase balance in time, we add interest to your balance. This interest starts from the day you make your purchase, but we only add it to your balance if you do not pay the balance in full in time.

Deferred Interest Financing Explained

How it works

Let's say you make a purchase with deferred interest financing.

Interest starts from the day you made the purchase. We calculate this interest at the standard purchase APR, but we defer — or set aside — this interest. We defer it until the end of the promotional period.

During the promotional period, the “deferred” interest grows (or “accrues”). We show the accrued interest on your billing statement. Your statement also shows:

the initial purchase date,

the date the promotional period ends; and

any outstanding promotional balance.

Let's say you pay off the purchase before the promotional period ends. In that case, we do not add the interest to your balance. You will not pay the deferred interest.

On the other hand, let's say you do not pay off the purchase before the promotional period ends. In that case, we add the interest to your balance. You must pay the deferred interest.

Frequently Asked Questions

We've compiled a list of frequently asked questions about Deferred Interest Financing to help you understand how these promotions work. Click on any of the questions below to learn more.

If you have any other questions, contact us at 1-800-252-2551.

Payments

If I make only my minimum payments, will I be charged interest?

Yes. Minimum payments will not pay off the balance in time. You must make larger payments to avoid the interest. Here’s a sample comparison of minimum monthly payments versus larger payments.

Keep in mind, your minimum payment may include amounts owed for other balances.

Cardholder Repayment Examples: $1,800 total purchase price**

Promo Type: No Interest if Paid in Full within 6 Months
Cardholder Repayment Examples

If I make payments that are larger than my minimum payments, are those amounts always applied to my deferred interest balance?

No. Generally, we first apply the amount over and above your minimum monthly payment to higher interest balances and older balances.

During the last two months of the promotional period, we apply any amount over and above your minimum monthly payment to the deferred interest balance.

You have the option to re-direct the excess amount to deferred interest balances. To do so, call us at the number on your account statement.

How do I make a payment?

It’s easy. We offer three convenient ways to pay your monthly bill.

Online

Visit myonlineaccount.net.

By Phone

Call the phone number shown on your statement or on the back of your credit card.

By Mail

Department of Accounts
P.O. Box 33802
Detroit, MI 48232-5802

Please allow 7 days for your payment to reach us.

Balance Information

How long do I have to pay off my Deferred Interest Promotion balance?

Your Promotion Expiration Date can be found on your monthly billing statement in the “Summary of Promotional and Standard Balances.”

Summary of Promotional and Standard Balances

You can also login to your account at myonlineaccount.net to see your Promotion Expiration Date.

When does deferred interest start?

Interest starts from the day you made the purchase. We calculate this interest at the standard purchase APR. But, we defer — or set aside — this interest. We defer it until the end of the promotional period.

During the promotional period, the deferred interest grows — or “accrues.” We show the accrued interest on your billing statement. Your statement also shows:

the initial purchase date,

the date the promotional period ends; and

any outstanding promotional balance.

How do I avoid being charged deferred interest?

To avoid the interest, you must repay the full purchase balance before the promotional period ends. You need to make more than your minimum payments to do this. You also need to consider other balances. They affect how your payments are applied.

Minimum Payments. You are required to pay at least your minimum payment each month. But, minimum payments will not pay off a deferred interest balance before the promotional period ends. You must make larger payments to avoid the interest.

Other Balances. We first apply your payments to the minimum payments due for all balances. The portion of any payment that is larger than your minimum payment is an excess payment.

Generally, we first apply the excess payment to higher interest balances. This is different during the last two months of the deferred interest promotional period. In those two months, we first apply the excess payment to the deferred interest balance.

Purchases

Can I make other purchases on my account during the Deferred Interest Promotional period?

Yes. You can make purchases up to your available credit limit.

But remember, other balances affect how your payments are applied. We first apply your payments to the minimum payments due for all balances. The portion of any payment that is larger than your minimum payment is an excess payment.

Generally, we first apply the excess payment to higher interest balances. This is different during the last two months of the deferred interest promotional period. In those two months, we first apply the excess payment to the deferred interest balance.

Statements

Where can I find information about my Deferred Interest Promotion on my statement?

Your billing statement is designed to put all the information you need at your fingertips. Whether you receive paper or paperless statements, you can quickly review transactions, see your payment information and view all the details of your promotional purchases. Information about your Deferred Interest Promotion is found on your statement under “Summary of Promotional and Standard Balances.”

Account Statement Example – Page 1 Account Statement Example – Page 2
1

Minimum Payment Due

Make at least the minimum payment due each month by the due date shown.

Remember: Minimum payments will not pay off a deferred interest balance before the promotional period ends. You must make larger payments to avoid the interest.

2

Transactions

Summary of your payments and any recent transactions.

3

Summary of Promotional and Standard Balances

An overview of your Promotional purchases.

4

Initial Purchase Date

When you made the purchase. Interest accrues from this date.

5

Promotion Expiration Date

Pay your promotional balance in full by this date to avoid being charged accrued interest.

6

Accrued Interest

Interest accrued to date based on your Standard APR.

7

Interest Charged

If you don’t pay your promotional balance in full by the promotional expiration date, your interest charges will be shown here.

8

Outstanding Balance

The remaining amount you need to pay in order to pay off your promotional balance.

9

Minimum Payment Due

The minimum amount you need to pay by your due date. Paying only the minimum payment will not pay off the balance in time.

10

Interest Charge Calculation

Shows the APR of the interest being accrued on the deferred promotional balance. The accrued interest will not be added to your balance if you pay off the purchase before the Promotion Expiration Date.

Where can I get my statement?

There are two ways you may receive your monthly billing statement.

By Mail

You will receive a paper statement in the mail every month unless you enroll in paperless statements.

Online

If you enroll in paperless statements, or if you want to see your account information online, log in to your account at myonlineaccount.net.

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