Credit Card Deferred Interest Study - 2012

With the busiest shopping period of the year upcoming and the average consumer expected to spend $749.51 during it, according to the National Retail Federation, we at Card Hub decided to examine the deferred interest plans of the nation’s largest retailers in order to help folks avoid running into unforeseen issues during a time that is expected to be filled with holiday cheer.

Deferred interest plans sound very similar to the 0% introductory interest rates that many credit card companies are using to attract the business of new creditworthy customers, but there is one major difference:

• With a 0% credit card: If you don’t pay down your entire balance by the end of the 0% intro term, the regular interest rate simply gets applied to whatever balance remains at that time.
• With a retailer’s deferred interest plan: If you don’t pay down your entire balance by the end of the 0% intro term or you make a late payment, the regular rate gets applied retroactively to the entire original balance.

Deferred interest plans are extremely dangerous for consumers who plan purchases with the expectation of paying a certain interest-free price, yet are ultimately faced with bills that are much more expensive as a result of either minor payment problems or unfamiliarity with the trap that deferred interest plans pose.

Consider, for example, someone who opens a credit card that offers 0% on new purchases for six months and charges a 20% regular interest rate in order to make an upcoming $750 big-ticket purchase that they’re planning to pay off by the end of the introductory period. If that person misses their goal by one month (and pays off what they owe in seven months instead of six), they’ll pay $2 in interest with a normal credit card. However, if their card offers deferred interest, they’ll not only pay 27.5 times more interest (i.e. $55), but it will also take them an additional month longer to become debt free.

The retailers were evaluated based on whether or not they offer deferred interest and how transparent they are regarding their interest policies. After all, consumers should be able to determine how the interest on a financed purchase will be calculated before they actually buy.

Key Findings

• Under a deferred interest payment plan, paying off your credit card debt one month behind schedule, could increase a consumer’s financing costs by more than 27 times.
• 82.2% of major retailers offer financing options.
• Of the major retailers that offer financing, 62.2% offer a deferred interest plan.
• 54.1% of the major retailers that offer financing are not transparent about their policies.
• Of the major retailers that offer financing, 37.8% offer a deferred interest plan and are not transparent about their policies.
• Only 21.6% of the major retailers that offer financing don’t have a deferred interest plan and are transparent about their policies.
• 51.1% of the retailers we evaluated were either unwilling to participate in this study or directed our inquiries to their co-branded credit card issuers rather than answering themselves. Our assessment is that retailers do not really care about the detrimental aspects of deferred interest as long as it drives sales.
• Among the retailers that offer deferred interest, we were very surprised to find companies like Apple and Amazon that have made a name for themselves by developing the best possible products for consumers.
• Based on our findings and the needs of consumers, we feel that it is time for retailers who truly care about their customers to proactively abolish deferred interest payment plans. In the absence of such a development, regulators must promote the ability for consumers to clearly compare financing options by prohibiting deferred interest payment plans.

Summary of Results

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Methodology

In conducting this study, we contacted 45 of the nation’s largest retailers and asked whether or not they offer deferred interest payment plans. Restaurant chains, grocery stores, pharmacies, and other retailers for whom deferred interest obviously isn’t applicable were excluded from this study.

Retailers were evaluated based on two criteria: 1) whether or not they offer deferred interest; and 2) their transparency. A retailer was regarded as not being transparent if it failed or was unwilling to respond to multiple requests for verification of information. For such retailers, we gathered information by visiting their websites and/or calling their stores and posing as customers.

Retailers who reported offering deferred interest during certain promotional periods were regarded as having deferred interest. Retailers who do not offer any financing options whatsoever were not included in the above infographic because they should neither be rewarded nor punished for not offering deferred interest.

Detailed Results

Retailer: Target
Offers Deferred Interest? No
Transparent About Policies? No
Additional Details: No additional information was provided.

Retailer: JCPenney
Offers Deferred Interest? Yes
Transparent About Policies? Yes
Additional Details:

• Deferred interest payment plans means interest accrues monthly on the unpaid balance during the promotional period and is assessed on the account only if the balance is not paid in full by the end of the promotional period. JCPenney offers deferred interest promotions only in 2 of their Puerto Rico stores, through their Bassett Furniture relationship.
• No interest promotions means interest begins to be assessed only at the end of the promotional period and only on any remaining balance if there is any. No interest promotions are offered in just select JCPenney store departments (e.g. furniture, jewelry, custom decorating) for durations (> 6 mos.) determined by JCPenney.

Retailer: True Value
Offers Deferred Interest? No
Transparent About Policies? Yes
Additional Details:

• True Value plans to launch a new credit card, which will offer a deferred interest payment plan, in early 2013, though the details are still being finalized.

Retailer: Wal-Mart
Offers Deferred Interest? Yes
Transparent About Policies? No
Additional Details:

• No Interest if Paid In Full within 18 Months* on any electronics purchase of $429 or more made in-store with a Walmart® Credit Card. Interest will be charged to your account from the purchase date if the promotional balance is not paid in full within 18 months. Minimum monthly payments required and may pay off purchase before end of promo period. Certificate required. This offer certificate must be scanned at the time of purchase to receive this offer. Offer valid through November 30, 2012.

Retailer: Home Depot
Offers Deferred Interest? Yes
Transparent About Policies? No
Additional Details:

• STOREWIDE AND ONLINE OFFERS: NO INTEREST IF PAID IN FULL WITHIN 6 MONTHS*on purchases of $299 or more. Minimum payments required. Interest will be charged to your account from the purchase date if the purchase balance (including premiums for optional credit insurance) is not paid in full within 6 months or if you make a late payment.
• OUTDOORS OFFERS: NO INTEREST IF PAID IN FULL WITHIN 12 MONTHS*on Snow Thrower purchases of $299 or more. Minimum payments required. Valid 9/27/2012-12/5/2012. Interest will be charged to your account from the purchase date if the purchase balance (including premiums for optional credit insurance) is not paid in full within 12 months or if you make a late payment.
• HEATING AND AIR CONDITIONING OFFERS: NO INTEREST IF PAID IN FULL WITHIN 12 MONTHS*on any Installed Heating or Air Conditioning purchases of $299 or more. Minimum Payments Required. Valid 2/1/2012-1/31/2013. Interest will be charged to your account from the purchase date if the purchase balance (including premiums for optional credit insurance) is not paid in full within 12 months or if you make a late payment.
• BUILDING MATERIALS OFFERS: NO INTEREST IF PAID IN FULL WITHIN 12 MONTHS*on any Installed Roofing, Siding, Windows, Insulation, Gutter, and Leaf Protection purchases of $5000 or more. Minimum payments required. Valid 2/1/2012-1/31/2013. Interest will be charged to your account from the purchase date if the purchase balance (including premiums for optional credit insurance) is not paid in full within 12 months or if you make a late payment.
• The Home Depot Consumer Credit Card Benefits: The Home Depot Consumer Credit Card provides convenient buying power at all U.S. The Home Depot stores. We offer great deferred billing promotions. You can even view and pay your account online!

Retailer: Lowe’s
Offers Deferred Interest? Yes
Transparent About Policies? No
Additional Details:

• Special Promotional Financing Offer Information: At times, we may offer you special financing promotions for certain transactions (“special promotions”). The terms of this Agreement apply to any special promotion. However, any special promotional terms that are different than the terms in this Agreement will be explained on promotional advertising or other disclosures provided to you.
• For each promotion, if the promotional purchase is not paid in full within the promotional period, interest will be imposed from the date of purchase at the APR that applies to your account when the promotional purchase is made.
• At the time your account is opened, the Purchase APR is 24.99%.
• When you make a qualifying purchase under one of the promotions shown immediately above, no interest will be assessed on the purchase if you pay the promotional purchase in full within the applicable promotional period. If you do not, interest will be assessed on the promotional purchase from the date of the purchase. Minimum monthly payments are required. Some or all of the minimum payment based on the promotional balance may be applied to other account balances. Regular account terms apply to non-promotional purchases and, after promotion ends, to your promotional purchases. Offers are subject to credit approval. These promotional offers may not be available at all times for all purchases. Please see any special promotion advertising or other disclosures provided to you for the full terms of any special promotion offered.

Retailer: Best Buy
Offers Deferred Interest? Yes
Transparent About Policies? No
Additional Details:

• 3 Year Financing: Pay no interest on all HDTV, home theater and Geek Squad® home theater installation purchases totaling $899 and up if paid in full within 3 years. Interest will be charged to your account from the purchase date if the purchase balance is not paid in full within 3 years or if you make a late payment.
• 18-Month Financing: Pay no interest on all purchases totaling $429 and up if paid in full within 18 months. Interest will be charged to your account from the purchase date if the purchase balance is not paid in full within 18 months or if you make a late payment.
• 6-Month Financing: Pay no interest on all purchases totaling $149 and up if paid in full within 6 months. Interest will be charged to your account from the purchase date if the purchase balance is not paid in full within 6 months or if you make a late payment.

Retailer: Costco
Offers Deferred Interest? No
Transparent About Policies? Yes
Additional Details:

• “We’re a cash and carry operation. We accept two different credit cards (American Express and Costco Credit Card backed by Capital One), but do not offer any type of financing to our members.”

Retailer: Amazon
Offers Deferred Interest? Yes
Transparent About Policies? No
Additional Details:

• 6-Month Financing Offer: No interest if paid in full within 6 months. Interest will be charged to your account from the purchase date if the promotional balance is not paid in full within 6 months. Minimum monthly payments required.
• 12-Month Financing Offer: No interest if paid in full within 12 months. Interest will be charged to your account from the purchase date if the promotional balance is not paid in full within 12 months. Minimum monthly payments required.
• 24-Month Financing Offer: No interest if paid in full within 24 months. Interest will be charged to your account from the purchase date if the promotional balance is not paid in full within 24 months. Minimum monthly payments required.

Retailer: Macy’s
Offers Deferred Interest? Yes
Transparent About Policies? No
Additional Details:

• Special Payment Plans: We may offer you promotional terms from time to time for all or a part of any balances. Any promotional terms may apply for a limited period of time. They will be governed by the terms of the promotional offer and the Credit Card Agreement, in accordance with law. They may include the Special Event and the No Interest offers described below. Your promotional terms may end if you make a late payment. (a) Special Event: Interest Charges will accrue but will be deferred during the promotional period, and will not be imposed on this balance if you pay the balance in full by the end of the promotional period. We will impose Interest Charges on this balance if you do not pay the balance in full by the end of the promotional period or the promotional terms are terminated. We will impose these Interest Charges from the date of purchase until the balance is paid in full. The promotional offer will specify any minimum purchase amount and the amount of any minimum payment required on this balance. (b) No Interest: No Interest Charges are imposed on this balance during the promotional period. The promotional offer will specify any minimum purchase amount and the amount of any minimum payment required on this balance.

Retailer: Kohl’s
Offers Deferred Interest? No
Transparent About Policies? No
Additional Details: No additional information was provided.

Retailer: Apple
Offers Deferred Interest? Yes
Transparent About Policies? No
Additional Details:

• New cardmembers get no interest financing on initial purchases at the Apple Store, with the new Financing Visa Card from Barclaycard. No interest on your initial Apple purchases under $999 if paid in full within 6 months or months no interest on your initial Apple purchases over $999 if paid in full within 12 months

Retailer: TJX
Offers Deferred Interest? No
Transparent About Policies? No
Additional Details: No additional information was provided.

Retailer: Meijer
Offers Deferred Interest? No
Transparent About Policies? Yes
Additional Details:

• Meijer credit cards are managed through GE Credit. The credit products are consistent from store to store. We do not offer deferred interest programs.

Retailer: Sears
Offers Deferred Interest? Yes
Transparent About Policies? Yes
Additional Details:

• Sears Holdings Corporation does, on occasion offer deferred interest financing options. Usually the plans focus on specific products or transactions above a certain price. The offers are available in-store and / or online. The offers are made and accepted (or declined by the customer) as part of the checkout process.
• IMPORTANT SPECIAL FINANCING/DEFERED INTEREST DETAILS (when offered). No interest if paid in full within 12 months on home appliance purchases over $499 made from November 1-30, 2012. Interest will be charged to your account from the purchase date if the purchase balance is not paid in full within 12 months or if you make a late payment. Minimum payments required.
  • With credit approval, for qualifying purchases made on a Sears card at participating stores (Sears Commercial One accounts excluded) Sears Home Improvement Account (sm) valid on installed sales only. Offer is valid for consumer accounts in good standing; is subject to change without notice; see store for details. May not be combined with any other promotion offer. Sears cards: As of 10/5/2012, APR for purchases: Variable 7.24%-27.24% or non-variable 14.00%-29.99%. Minimum interest charge: up to $2. See card agreement for details, including APR’s and fees applicable to you. Sears cards are issued by Citibank, N.A..
• IMPORTANT SPECIAL FINANCING/DEFERRED INTEREST DETAILS (when offered). No interest if paid in full within 12 months on Fine Jewelry purchases over $299 made from November 1 – December 1, 2012. Interest will be charged to your account from the purchase date if the purchase balance is not paid in full within 12 months or if you make a late payment. Minimum payments required.
  • With credit approval, for qualifying purchases made on a Sears card at participating stores (Sears Commercial One accounts excluded) Sears Home Improvement Account (sm) valid on installed sales only. Offer is valid for consumer accounts in good standing; is subject to change without notice; see store for details. May not be combined with any other promotion offer. Sears cards: As of 10/5/2012, APR for purchases: Variable 7.24%-27.24% or non-variable 14.00%-29.99%. Minimum interest charge: up to $2. See card agreement for details, including APR’s and fees applicable to you. Sears cards are issued by Citibank, N.A.
• IMPORTANT SPECIAL FINANCING/DEFERRED INTEREST DETAILS (when offered).No interest if paid in full within 24 months on purchases of mattresses and foundations from $500-$1,299.99 OR; 36 months for purchases of mattresses and foundations $1,300 or more made from November 4-17, 2012. Interest will be charged to your account from the purchase date if the purchase balance is not paid in full within the promotional period or if you make a late payment. Minimum payments required.
  • With credit approval, for qualifying purchases made on a Sears card at participating stores (Sears Commercial One accounts excluded) Sears Home Improvement Account (sm) valid on installed sales only. Offer is valid for consumer accounts in good standing; is subject to change without notice; see store for details. May not be combined with any other promotion offer. Sears cards: As of 10/5/2012, APR for purchases: Variable 7.24%-27.24% or non-variable 14.00%-29.99%. Minimum interest charge: up to $2. See card agreement for details, including APR’s and fees applicable to you. Sears cards are issued by Citibank, N.A.

Retailer: Staples
Offers Deferred Interest? Yes
Transparent About Policies? No
Additional Details:

• Deferred Interest Promotional Offers on the Staples card: From time to time, as a Staples card holder you may be offered special limited time only deferred interest promotional offers. Deferred Interest promotional offers include the following types of offers:
  • No Interest if Paid in Full in 6 Months, Minimum Monthly Payments Required
  • No Interest if Paid in Full in 12 Months, Minimum Monthly Payments Required
  • No Interest if Paid in Full by a specified date, Minimum Monthly Payments Required
• If the balance is not paid in full by the end of the promotional period (or, to the extent permitted by law, if you make a late payment), interest charges will be imposed from the purchase date at the purchase rate on your account which is 27.99% APR. This APR is as of 08/01/2012 and will vary with the market based on the Prime Rate. These offers are not available all the time and may be limited to specific merchandise and/or have a minimum payment and purchase requirements as disclosed in the offer. Your card agreement, the terms of the offer and applicable law govern these transactions including increasing APRs and fees and termination of the promotional period.

Retailer: Ace Hardware
Offers Deferred Interest? No
Transparent About Policies? No
Additional Details: No additional information was provided.

Retailer: Toys R Us
Offers Deferred Interest? Yes
Transparent About Policies? Yes
Additional Details:

• Special Promotional Financing Offer Information: At times, we may offer you special financing promotions for certain transactions (“special promotions”). The terms of this Agreement apply to any special promotion. However, any special promotional terms that are different than the terms in this Agreement will be explained on promotional advertising or other disclosures provided to you. Below is a description of certain special promotions that may be offered:
  • No Interest if Paid in Full Within 6 Months
  • No Interest if Paid in Full Within 12 Months
  • No Interest if Paid in Full Within 18 Months
• For each promotion, if the promotional balance is not paid in full within the promotional period, interest will be imposed from the date of purchase at the Purchase APR that applies to your account when the promotional purchase is made.
• At the time your account is opened, the Purchase APR is 26.99%.
• When you make a qualifying purchase under one of the promotions shown immediately above, no interest will be assessed on the purchase if you pay the following (the “promotional balance”) in full within the applicable promotional period. If you do not, interest will be assessed on the promotional balance from the date of the purchase. Minimum monthly payments are required.

Retailer: Menard
Offers Deferred Interest? Yes
Transparent About Policies? Yes
Additional Details:

• PROMOTIONAL CREDIT PLANS: From time to time, we may offer one or more Promotional Credit Plans. These may be offered to you: prior to your purchase; and/orat the time of your purchase. Any of these Plans may be offered at any time and are conditioned on your timely payment of at least the Minimum Payment Due for each billing statement:
  • Waived Interest Charge Credit Plan: With this Plan there are no Interest Charges on your purchase for a specified period.
  • Same As Cash / Monthly Payment Credit Plan: With this Plan, there are no Interest Charges on your purchase if you repay the full cash price of the purchase before the promotional expiration date shown on your billing statement. If you do not repay in full by the promotional expiration date, Interest Charges will be imposed from the purchase date.
  • Reduced Rate Credit Plan: With this Plan, you will receive a reduced periodic rate on your purchase for a specified period.
  • Special Repayment Term Credit Plan: With this Plan special repayment terms will be applied to the purchase for the specified period.
  • Special Repayment Term / Reduced Rate Credit Plan: With this Plan special repayment terms and a reduced periodic rate will be applied to the purchase for the specified period.
  • Purchases that do not fall under one of these Plans are called Regular Credit Plan purchases. If you make more than one purchase on your card, these balances may be treated differently. Certain rules apply to the allocation of payments and interest charges on your promotional purchase if you make more than one purchase on your Card. Call 1-888-367-4310 or review the HOW WE APPLY PAYMENTS section of your Cardholder Agreement for information.

Retailer: Office Depot
Offers Deferred Interest? Yes
Transparent About Policies? No
Additional Details:

• Deferred Interest Promotional Offers on the Office Depot card: From time to time, as an Office Depot card holder you may be offered special limited time only deferred interest promotional offers. Deferred Interest promotional offers include the following types of offers:
  • No Interest if Paid in Full in 6 Months, Minimum Monthly Payments Required
  • No Interest if Paid in Full in 12 Months, Minimum Monthly Payments Required
  • No Interest if Paid in Full by a specified date, Minimum Monthly Payments Required
• If the balance is not paid in full by the end of the promotional period (or, to the extent permitted by law, if you make a late payment), interest charges will be imposed from the purchase date at the purchase rate on your account which is 27.99% APR. This APR is as of 08/01/2012 and will vary with the market based on the Prime Rate. These offers are not available all the time and may be limited to specific merchandise and/or have a minimum payment and purchase requirements as disclosed in the offer. Your card agreement, the terms of the offer and applicable law govern these transactions including increasing APRs and fees and termination of the promotional period.

Retailer: Nordstrom
Offers Deferred Interest? No
Transparent About Policies? Yes
Additional Details: No additional information was provided.

Retailer: Dillard’s
Offers Deferred Interest? No
Transparent About Policies? Yes
Additional Details: No additional information was provided.

Retailer: OfficeMax
Offers Deferred Interest? Yes
Transparent About Policies? Yes
Additional Details:

• 6 Months Special Financing on Purchases of $299 or more made from 11/06/12-12/29/12 on the OfficeMax Business Credit Card. Interest will be charged to your account from the purchase date if the purchase balance is not paid in full within 6 months or if you make a late payment.

Retailer: QVC
Offers Deferred Interest? No
Transparent About Policies? Yes
Additional Details:

• QVC does not offer a deferred interest payment plan. QVC previously offered a deferred payment plan through QCard®, our private-label credit card. However, this program was dropped several years ago and, in any event, was not a deferred interest payment plan.

Retailer: Dick’s Sporting Goods
Offers Deferred Interest? Yes
Transparent About Policies? Yes
Additional Details:

• From time to time, Lender may offer Standard Purchases or Promotional Purchases with a lower rate that may apply for a limited time.
• From time to time, Lender may waive the Installment Purchase Transaction Fee in connection with an Installment Purchase promotional offer.

Retailer: Dell
Offers Deferred Interest? Yes
Transparent About Policies? Yes
Additional Details:

• WebBank frequently offers deferred interest promotional plans such as “12 Months Special Financing on New Computer Purchases $1299 or More with Dell Preferred Account,” which offers qualified customers 12 months of no interest monthly payments if they pay the purchase balance in full by the promotional expiration date. If the purchase balance is not paid in full by the promotional expiration date, or if a payment is made late, interest will be charged to the customer’s account from the date of purchase. These consumer loans are serviced by Dell Financial Services.
• Promotional Credit Plans. In addition to purchases that accrue Interest Charges and require monthly payments as described previously in this Agreement, Promotional Credit Plans may be offered from time to time on specific purchases for qualified buyers. A Promotional Credit Plan is strictly limited by its terms and the terms and conditions of the special promotion to which it relates. In addition, the benefits of a Promotional Credit Plan will expire and all accrued Interest Charges in these plans will be added to your Account if your Account is placed in Penalty APR status. The special promotions that may be offered include:
  • (a) No Interest Credit Plan – If you pay the full purchase price before the expiration date of the promotion, as indicated on your billing statement, and pay the Minimum Payment Due each Billing Period when due, no Interest Charges will be imposed on the purchase. If such payments are not made, Interest Charges from the date of shipment will be added to your Account either when you fail to make a payment during the promotion period or at the end of the promotion period. We may offer promotion periods of different lengths that we will announce from time to time.
  • (b) Promotional Rate Plans – We may offer Promotional Rate Plans with promotional periods of different lengths that we will announce from time to time for a specified number of days.
• WebBank offers deferred interest promotional plans in relation to particular products. Therefore, a customer qualifies to receive the deferred interest financing promotion if the customer (1) has enough credit on their Dell Preferred Account to purchase the product and (2) purchases that product.

Retailer: Tractor Supply Co.
Offers Deferred Interest? Yes
Transparent About Policies? Yes
Additional Details:

• NO INTEREST IF PAID IN FULL WITHIN 6 MONTHS – $150 MINIMUM PURCHASE REQUIRED
  • No Interest If Paid In Full Within 6 Months** on all purchases that total $150 or more on the Tractor Supply Company Personal Credit Card. Minimum Payments Required. Interest will be charged to your account from the purchase date if the purchase balance (including premiums for optional credit protection) is not paid in full within 6 months or if you make a late payment. Valid through November 20, 2012.

Retailer: RadioShack
Offers Deferred Interest? Yes
Transparent About Policies? Yes
Additional Details:

• NO INTEREST IF PAID IN FULL WITHIN 6 MONTHS
  • $150 Minimum Purchase Required. Minimum Payments Required.
  • Interest will be charged to your account from the purchase date if the purchase balance (including optional Balance Protector Premiums) is not paid in full within 6 months or to the extent permitted by law, if you make a late payment. Minimum monthly payments of the greater of up to $25 or up to 2.4% of your promotional balance (which calculation is rounded up to the nearest dollar) are required plus any minimum payment otherwise due. Making the minimum monthly payment will not pay off your promotional balance in time to avoid INTEREST CHARGES. With credit approval for qualifying purchases made on the RadioShack credit card. As of 6/01/2012, APR for purchases: Variable 26.99% – 28.99% (see your card agreement for APR applicable to you), except when your account is at the penalty rate, which is up to 29.99% APR. Minimum INTEREST CHARGE: up to $2.99. See card agreement for details including when the penalty rate applies. Offer is only valid for consumer accounts in good standing and is subject to change without notice; see store associate for details. Offer expires 10/31/2012. May not be combined with any other credit promotion offer.
• NO INTEREST IF PAID IN FULL WITHIN 12 MONTHS
  • $300 Minimum Purchase Required. Minimum Payments Required.
  • Interest will be charged to your account from the purchase date if the purchase balance (including optional Balance Protector Premiums) is not paid in full within 12 months or to the extent permitted by law, if you make a late payment. Minimum monthly payments of the greater of up to $25 or up to 2.4% of your promotional balance (which Calculation is rounded up to the nearest dollar) are required plus any minimum payment otherwise due. Making the minimum monthly payment will not pay off your promotional balance in time to avoid INTEREST CHARGES. With credit approval for qualifying purchases made on the RadioShack credit card. As of 6/01/2012, APR for Purchases: Variable 26.99% – 28.99% (see your card agreement for APR applicable to you), except when your Account is at the penalty rate, which is up to 29.99% APR. Minimum INTEREST CHARGE: up to $2.99. See card agreement for details including when the penalty rate applies. Offer is only valid for consumer accounts in good standing and is subject to change without notice; see store associate for details. Offer expires 10/31/2012. May not be combined with any other credit promotion offer.

Retailer: Belk
Offers Deferred Interest? No
Transparent About Policies? Yes
Additional Details: No additional information was provided.

Retailer: Neiman Marcus
Offers Deferred Interest? Yes
Transparent About Policies? Yes
Additional Details:

• Deferred interest is available for purchases of a minimum of 1000.00. It is always offered in fur salon, precious jewelry and gift gallery departments and occasionally in other departments
• Any of these Plans may be offered at any time and are conditioned on your timely payment of at least the Minimum Payment Due for each billing statement:
  • Waived Interest Charge Credit Plan:
    • With this Plan there are no Interest Charges on your purchase for a specified period.
    • If you make more than one purchase on your card, these balances may be treated differently.
    • Certain rules apply to the allocation of payments and interest charges on your promotional purchase if you make more than one purchase on your Card. Call 1-888-367-4310 or review the HOW WE APPLY PAYMENTS section of this Agreement for information.
    • HOW INTEREST CHARGES ARE CALCULATED: Each billing statement shows the Interest Charges, which are calculated separately for each:
      • Promotional Credit Plan with a unique due date or unique terms;
      • Regular Credit Plan
      • The total interest charge for the billing cycle is the sum of the interest charge for each plan subject to the minimum interest charge shown in the chart.

Retailer: Williams-Sonoma
Offers Deferred Interest? No
Transparent About Policies? Yes
Additional Details:

• The Williams-Sonoma brand and associated Williams-Sonoma Visa card does not offer a deferred interest payment plan (“same as cash”).

Retailer: Bed, Bath and Beyond
Offers Deferred Interest? No
Transparent About Policies? No
Additional Details: No additional information was provided.

Retailer: Ross Stores
Offers Deferred Interest? No
Transparent About Policies? No
Additional Details: No additional information was provided.

Retailer: The Sports Authority
Offers Deferred Interest? Yes
Transparent About Policies? Yes
Additional Details:

• Financing promotions are offered by Comenity and must be placed on the Sport Authority Credit Card. Any Customer can apply for the Sports Authority Credit Card in-store. Once the respective threshold has been met in a single transaction ($299+ deferred interest 6 months; $699+ deferred interested 12 months) that transaction is automatically deferred for the correlating plan amount.
• The types of Credit Plans offered and the particular features (including but not limited to minimum purchase requirements, Minimum Payment, etc.) of such Credit Plans may vary from time to time at our discretion and may include one or more of the following: Regular Revolving or Promotional Credit Plans.
  • The Regular Revolving Credit Plans are your non-promotional purchases using the Card.
  • The Promotional Credit Plans may include: Waive Interest, Payment Required; Waive Interest, Equal Payment; Waive Interest, Low Payment; Defer Interest, Equal Payment; Defer Interest, Payment Required; Defer Interest, Low Payment. (Please see section 14 for explanation for how Finance Charges are calculated for each Plan.)

Retailer: Burlington Coat Factory
Offers Deferred Interest? No
Transparent About Policies? No
Additional Details: No additional information was provided.

Retailer: BJ’s
Offers Deferred Interest? No
Transparent About Policies? Yes
Additional Details: No additional information was provided.

Retailer: Barnes & Noble
Offers Deferred Interest? No
Transparent About Policies? Yes
Additional Details: No additional information was provided.

Retailer: Sherwin-Williams
Offers Deferred Interest? No
Transparent About Policies? Yes
Additional Details: No additional information was provided.

Retailer: Foot Locker
Offers Deferred Interest? No
Transparent About Policies? Yes
Additional Details:

• We do not offer any type of deferred interest program. In fact, we do not directly offer any customer financing (deferred payment) options. Customers either pay at time of purchase with cash, credit/debit card, or by check.

Retailer: Michaels Stores
Offers Deferred Interest? No
Transparent About Policies? Yes
Additional Details: We’ve confirmed with Michaels that they do not use deferred credit.

Retailer: AutoZone
Offers Deferred Interest? No
Transparent About Policies? No
Additional Details: No additional information was provided.

Retailer: Big Lots
Offers Deferred Interest? Yes
Transparent About Policies? No
Additional Details:

• Big Lots offers 0% for 6 months, and if the entire balance is not paid down at the end of the 6-month period, interest is retroactively applied to the original balance.

Retailer: Gap
Offers Deferred Interest? No
Transparent About Policies? No
Additional Details: No additional information was provided.

Retailer: Pottery Barn
Offers Deferred Interest? Yes
Transparent About Policies? No
Additional Details:

• Section 6
  The types of Credit Plans offered and the particular features (including but not limited to minimum purchase requirements, Minimum Payment, etc.)of such Credit Plans may vary from time to time at our discretion and may include one or more of the following: Regular Revolving or Promotional Credit Plans. The Regular Revolving Credit Plans are your non-promotional purchases using the Card. The Promotional Credit Plans may include: Waive Interest, Payment Required; Waive Interest, Equal Payment; Waive Interest, Low Payment; Defer Interest, Equal Payment; Defer Interest, Payment Required; Defer Interest, Low Payment. (Please see section 14 for explanation for how Finance Charges are calculated for each Plan.)
• Section 14B
  For any Defer Interest Plan that ends, we will add the remaining amount of the plan and the amount of Finance Charges that have accrued from the date of purchase through and including the last day of the promotional period to your Regular Revolving balance.