 TITLE: What Is Deferred Interest? CONTENT: Does Deferred Interest Hurt Your Credit?\n----------------------------------------\nIn general, deferred interest financing or payments don't impact your credit any differently than traditional financing. When you defer interest, it still accrues, you just won't owe it if you pay off your balance in time (with a loan or credit card) or later on (with a mortgage).\nWhen it will hurt your credit is the same as with traditional credit—if you make late payments or miss them altogether. Even if a loan or credit card isn't being charged interest every month, you still must make at least a minimum payment toward the debt or risk consequences. This is important to remember if you took on deferred interest debt in an effort to delay paying for it.\nIn addition to a late payment's potential to harm your credit, it may also be enough for some lenders to end the deferral period prematurely and charge you full interest, which will only make matters worse.\nDon't take out a deferred interest financing product unless you're absolutely sure you can afford to make every payment on time, and before interest payments kick in. END