We all want an interest-free loan or to borrow money for free, but is it really possible? Getting a loan with no interest payments may appear to be unrealistic on the face of it, but this isn’t actually the case. It’s just a matter of improvising and taking advantage of offers designed to generate new business.
How to Get Interest-free Loans in a Difficult Market
There are ways that allow us to get the equivalent of a free cash loan, we just need to use market conditions to our advantage. Borrowing costs have risen, but banks still want new business and merchants still want you to buy their goods and services. Nothing has really changed.
Lenders and businesses only want reliable payers so you will need to have a good credit history. You can’t really expect a bank or business to lend money for free if you’re unlikely to repay the debt. You’ll also find that they make their money in different ways, such as merchant transaction fees or their sales margin.
Interest-free Finance is Simply a Loan with No Interest Payments
It’s surprising how often people take out a bank loan rather than going to a merchant to buy their new car or electrical goods on interest-free credit. You can borrow money for free and spread the monthly repayments over the next 12, 24 or 36 months. It’ll save you a fortune in interest payments.
In the current financial climate, merchants are desperate to generate new business. They realize that personal finances are tight and want to make it easy for you to pay for goods and services. Rather than getting a personal loan, consider what you want to buy and see if you can secure interest-free credit.
Interest-free Credit Card Balance Transfer vs. Interest-free Loans
You’ve got an outstanding balance on your credit card and are considering taking out a debt consolidation loan. While it makes sense to put all your debts under one roof and make a single payment each month, is it really the most economical way of paying off your debts?
Rather than taking out a low interest loan, you can perform a 0% balance transfer. You’ll have to pay a 4% administrative fee for making the transfer, but it’s still a great way to save money. The process takes about 30 days and you’ll typically enjoy the equivalent of a 12 to 15 month interest-free loan.
Borrow Money for Free from a Member of the Family
Rather than approaching a bank, consider asking a family member if they’re prepared to lend you money. It’s a great way of borrowing money for free and spreading the repayments over an extended term. It’s easy to arrange and there won’t be any credit checks.
If you are considering a family loan, make sure that the repayments are affordable. The last thing that you want is to be left owing money to a loved one as it could damage your relationship. If you do encounter difficulties, keep them informed as they may offer you a repayment holiday.
An Interest-free Bank Overdraft is a Great Way of Borrowing Money for Free
Despite the fact that an overdraft facility is designed to cover short-term financial shortfalls, many people have developed an excellent relationship with their bank. If you have been offered an interest-free bank overdraft, consider it as a loan with no interest and reduce the debt gradually each month.