0% intro APR explained, and how it differs from deferred interest
Edited by Moe Ameen · Published
A 0% intro APR means a card charges no interest on a balance for a set period, and interest starts only on what's left when it ends. Deferred interest is different: interest builds from the purchase date and is billed all at once if you haven't paid in full by the deadline. Deferred interest offers say "no interest if paid in full." Under federal rules, a promotional rate has to last at least six months.
Key takeaways
- 0% intro APR: interest starts only on the balance left after the promotion ends.
- Deferred interest: miss the deadline and you owe interest back to the purchase date.
- "No interest if paid in full" is the deferred interest tell, mostly on store cards.
- A promotional rate has to last at least six months.
- Short of a payment more than 60 days late, the issuer can't end it early on your existing balance.
What does 0% intro APR mean?
The card charges no interest on a balance for a set number of months. When the period ends, the regular APR applies to whatever is left.
The CFPB says a zero percent promotion won't add interest on the promotional balance. Interest begins only on the remaining balance, from the day the promotion ends [1]. The offer can cover purchases, balance transfers or both, and the issuer has to tell you how long the rate lasts and what rate follows [2].
0% doesn't mean free of fees. The CFPB says issuers can charge a balance transfer fee on a zero percent offer [6]. How transfers work is in how balance transfers work.
What is deferred interest, and how is it different from 0% APR?
With deferred interest, interest builds in the background from the purchase date. Leave any balance at the deadline and all of it is added to your bill.
The CFPB says deferred interest means that if you don't pay off the whole promotional balance in time, interest back to the date of purchase is added [1]. A 0% offer reads "0% intro APR on purchases for 12 months." A deferred interest offer reads "No interest if paid in full in 12 months." The CFPB's advice is to watch out for the "if" [1].
| 0% intro APR | Deferred interest | |
|---|---|---|
| Typical wording | "0% intro APR for 12 months" | "No interest if paid in full in 12 months" |
| Interest during the promotion | None | Builds up in the background |
| Balance left at the end | Regular APR on what's left, from that day on | All interest back to the purchase date is added |
| Where you'll usually see it | General-purpose cards | Store cards and retail financing |
Retailers often use deferred interest for big purchases, and the CFPB notes store cards usually carry a much higher rate than a typical bank card [1]. Bankrate says store and co-branded cards are more likely to carry these offers, and that they also turn up at doctors' offices [9].
How long does a 0% intro APR have to last?
At least six months. Regulation Z lets an issuer raise a promotional rate when it expires only if the period was six months or longer.
The rule also requires the issuer to tell you in writing how long the period lasts before it starts [3]. The CFPB's official commentary applies the same six-month floor to deferred interest programs [4]. A variable intro rate can still move during the period if its index, such as the prime rate, changes [2].
Can you lose a 0% intro APR by paying late?
On your existing promotional balance, only when a payment is more than 60 days late. Then the issuer can raise the rate on all balances.
The CFPB says the introductory rate has to stay in effect for at least six months unless you're more than 60 days late [2]. In its consolidation guidance, the CFPB adds that a payment more than 60 days late lets the issuer raise the rate on all balances, transferred ones included [5]. The commentary to Regulation Z gives an example: on a one-year balance transfer promotion, a payment that is not more than 60 days late doesn't let the issuer start charging interest before the year is up [3].
Card agreements can still say a late payment ends the offer, and a late fee applies either way. What happens after one is in missed credit card payments.
How do you avoid paying deferred interest?
Pay the whole promotional balance before the deadline. The minimum payment usually won't get you there, so divide the balance by the months you have.
The CFPB says the minimum payment due is usually not enough to pay off the balance by the end of the period [1]. Regulation Z helps near the end: in the last two billing cycles before a deferred interest period expires, the issuer has to apply anything you pay above the minimum to the deferred interest balance first [7]. Before then, extra payments go to your highest-APR balance [7].
Glisten worked example
The CFPB's $400 TV, one month later
The CFPB's example: a $400 TV on a 12-month promotion, $25 a month in payments, $300 paid and $100 left at the end, with a 25% regular rate [1]. We added the next month's interest, at 25% ÷ 12 on the balance owed.
| 0% intro APR | Deferred interest | |
|---|---|---|
| Owed when the promotion ends | $100 | $165 ($100 plus $65 of deferred interest) |
| Interest from then on | 25% on $100 | 25% on $165 |
| Interest in the first month after | About $2.08 | About $3.44 |
The $65 is the real cost. Paying $34 a month instead of $25 would have cleared the $400 in 12 months and avoided it entirely.
Is this right for you?
Best for
- Big purchases you can pay off inside the promotional period.
- Anyone working out whether an offer is 0% or deferred interest before signing up.
Not ideal for
- Deferred interest offers you can't clear in time. A small leftover balance can trigger the whole interest bill.
- Using the promotion as a reason to spend more than you'd otherwise put on a card.
Frequently asked questions
How can I tell if an offer is deferred interest?
Look for "if paid in full." The CFPB says deferred interest offers use that wording, and 0% offers say "0% intro APR" [1].
What happens when my 0% intro APR ends?
The regular APR starts on whatever balance is left, from that day forward. A true 0% offer doesn't charge interest for the promotional months [1].
Do I have to make payments during a 0% intro period?
Yes. The minimum payment is still due every month, and a payment more than 60 days late lets the issuer raise the rate on all balances [5].
Is a 0% balance transfer free?
Not usually. The CFPB says issuers can charge a balance transfer fee on a zero percent offer [6].
How we know this
On November 2, 2026 we read the CFPB's explainer on special promotional financing, its answers on introductory rates, balance transfer fees and consolidating card debt, Regulation Z sections 1026.53 and 1026.55 with the 1026.55 official interpretation, the CFPB's 2013 CareCredit order, and Bankrate's page on deferred interest. The worked example extends the CFPB's own figures with our arithmetic.
- How to understand special promotional financing offers on credit cards, Consumer Financial Protection Bureau. Checked November 2, 2026.
- How long can I keep a low rate on a balance transfer or other introductory rate?, Consumer Financial Protection Bureau. Checked November 2, 2026.
- Regulation Z § 1026.55 Limitations on increasing annual percentage rates, fees, and charges, Consumer Financial Protection Bureau. Checked November 2, 2026.
- Official interpretation of Regulation Z § 1026.55, Consumer Financial Protection Bureau. Checked November 2, 2026.
- What do I need to know about consolidating my credit card debt?, Consumer Financial Protection Bureau. Checked November 2, 2026.
- What is a balance transfer fee? Can it be charged on a zero percent offer?, Consumer Financial Protection Bureau. Checked November 2, 2026.
- Regulation Z § 1026.53 Allocation of payments, Consumer Financial Protection Bureau. Checked November 2, 2026.
- CFPB orders GE CareCredit to refund $34.1 million for deceptive health-care credit card enrollment, Consumer Financial Protection Bureau. Checked November 2, 2026.
- What is deferred interest and is it worth it?, Bankrate. Checked November 2, 2026.