“While shopping for holiday gifts, I bought something using my store credit card and was told that I would not have to pay any interest for 12 months. How does that work?”

This is what is called “deferred interest” and please be very careful if you use this option.
This means you won’t pay interest on that purchase as long as you pay off your balance by the end of the deferred interest period (12 months) and don’t make any late payments. If you are even one day late, you owe all of the interest that has been deferred.

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