Be on the lookout for cards with
deferred interest deals.
Other Notable Features: Choose between rewards or special financing offers (beware of
deferred interest deals), free 2 - day shipping on $ 35 minimum purchase (no minimum for Elite and ElitePlus members), access to special sales and offers, free setup by Geek Squad
Many pay an unexpected price for deferred - interest deals — About 1 in 5 people who sign up for
deferred interest deals on big - ticket items actually wind up owing finance charges... (See Deferred interest trap)
Deferred - interest, 0 - percent financing «deals» costly for many — About 1 in 5 people who sign up for 0 - percent,
deferred interest deals wind up owing accumulated finance charges... (See Deferred interest)
On the other hand, retail cards often come with
deferred interest deals, and they're useless if the store closes.
Be on the lookout for cards with
deferred interest deals.
Deferred interest deals are a type of introductory rate that traps many consumers.
Under
a deferred interest deal, if you miss a due date or your balance is not paid in full by the end of the promotional period, you will owe the entire amount of interest which — given the high interest rate that most retail cards charge — can be a hefty amount.
Not exact matches
For example, if you're in the market for new furniture and the store has a good,
deferred interest financing
deal (such as 0 percent
interest for 12 months), you can take advantage of it.
IMO, 28 %
deferred interest on a store card is an issue that needs to be
dealt with immediately — including returning the crap that you bought and probably didn't need.
It may also be tougher to take advantage of special dealer promotions, like zero down
deals or
deferred interest periods.
For example, if you're in the market for new furniture and the store has a good,
deferred interest financing
deal (such as 0 percent
interest for 12 months), you can take advantage of it.
How to avoid big costs of
deferred -
interest financing
deals — No -
interest financing is tricky, especially if you have more than one balance on the card.
See related: How to finance an engagement or wedding ring, Rewards cards reviews,
Deferred interest, 0 - percent financing «
deals» costly for many
However, be wary of the card's special financing
deals — while they might come in handy on those big - ticket buys, they actually include what's called
deferred interest, which means
interest accrues during the promotional period and is applied to your account if you don't pay your entire balance by the end of the term.
See related: How to avoid big costs associated with
deferred -
interest financing
deals, Video: What are credit card grace periods?
As with many special financing
deals, the Home Depot Consumer Credit Card charges
deferred interest, so you'll be charged
interest on your entire purchase amount if you don't pay it off before the end of your financing period.
The Credit CARD Act also impacted the rewards offerings of some retail cards since rules restricting how retailers can advertise
deferred interest plans have led many retailers to rein in no -
interest, no - payment
deals.
The former is considered true no -
interest financing — in which no
interest accrues during the promotional period, so long as you make minimum monthly payments — while the latter denotes a
deferred -
interest deal, which means
interest is retroactively applied from the date of purchase if you don't pay your entire balance by the end of the term.
Many retail cards, in contrast, offer
deferred interest financing
deals, in which
interest accrues during the promotional period.
Cash - value policies like whole life, variable life, and universal life are quite complicated and often a bad
deal — especially when you can earn
interest through other means, such as tax -
deferred and tax - free investments like retirement accounts and college savings plans.
The proposed rules and regulations specifically clarified the 45 calendar day identification period and the 180 calendar day exchange period rules, provided guidance on how to
deal with actual and constructive receipt issues in the form of safe harbor provisions, reaffirmed that partnership
interests do not qualify as like - kind property in a tax -
deferred like - kind exchange transaction, and further clarified the related party rules.