If you do not have an interest-free loan, you can borrow it without interest. Here are five cheap or free debits. There are many unsecured loans on the market that can help you borrow cheap money or check your existing debt. Here are some ways to get rid of bad debt. Remember, however, that not everything is free, as there may be hidden money involved.
Confused? We will provide further explanations as we analyze each option and identify all possible pitfalls you need to watch out for so that your “free” loan does not get into deeper financial problems. By the way, when you compared personal loans online, you didn’t find those options. This is because suppliers do not call this “credit” in any way!
If you have been in debt for a long time or are making progress in the red, we have developed a debt guide and available help. Finally, these options are really only suitable for small and medium amounts: if you need to borrow thousands of pounds in loans, a personal interest loan is the best option.
Overdraft without interest
Good for: Reliable and truly free loans whenever you need them.
A small number of current accounts currently offer an interest overdraft of 0%, although they may be withdrawn soon following new overdraft rules for funding costs. How much can I borrow?
For example, Nationwide offers a combined overdraft of up to 1,200 in your FlexDirect account, which charges no interest or fees for the first 12 months (39.9% EAR after that). Remember that the interest-free overdraft amount you offer will also depend on your creditworthiness.
It depends on the account, but borrowing using more than 0% is not really a long-term solution. While you are not a student, multiple checking accounts will help you earn in a few months or more than a year. After that, interest will be paid on the remaining amount, so you must confirm that you have paid your debt at 0%. Things to keep in mind: While the Financial Conduct Agency (FCA) has replaced legal and non-standard rates, many banks have raised interest rates to 40%. Although some banks have decided not to implement this increase due to the COVID-19 epidemic, this is temporary.
0% purchase of new credit card
Good: single large purchases
Another key way to get a completely free loan is to take a credit card that charges 0% interest on new purchases. How much can I borrow? Credit cards usually show a maximum credit limit before applying. The credit limit offered can be much lower and (like an overdraft) depending on your personal financial circumstances.
How long is the money interest-free? It depends on the credit card. Currently, bidders are offering new, interest-free purchases for up to 26 months, but the maximum price may change frequently.
Things to look for: When your 0% charge expires, you will usually be charged a very high-interest rate on your remaining balance (usually around 20% APR) – so you need to cancel your balance before this happens. If you are still in arrears when your 0% contract expires, you can try to remove the 0% equity transfer card (more in the next installment) and transfer the remaining credit to that card. You should also make sure that you make lower monthly payments (and more if you can). If you are late or unable to pay, you may be charged, and your 0% contract may be terminated. Over time, note that 0% longer credit cards are usually stored for those with high credit scores.
0% credit card balance transfer
Compatible with: credit card debt consolidation and payment
If you have already paid interest on a credit card loan, you can make a non-profit loan by transferring to a credit card that offers 0% of the cash transfer. How much can I borrow? As the new 0% price card, a credit card larger than 0% will indicate your credit limit before applying. The credit limit offered will be based on the size of your loan, so do not assume that you will get higher interest rates.
How long is the money not interest-free? In addition, it depends on the card you choose, but with this card, it is important to observe the price, as well as the 0% window to decide what is most suitable for you. When TSB offers a conversion duration of up to 29 months (writing time), it pays a maximum payout of 2.95%. If you are willing to sacrifice for four months at a time free of charge, HSBC Money Transfer offers a 1.5% discount.
Things to keep in mind: While you may lose your pay temporarily, most buses are not free. Most credit card lenders will charge a fee of approximately 3% of your total debit card exchange (although some debit cards do not charge). If you want to choose the lower 0% window, you can choose one of the few freebies to replace the deductible. NatWest / RBS also offers debit cards and a 20-month free trial, but this is only open to members and is not a good option.
If you are interested, MoneySavingExpert recommends opening US cash and all banks (£ 1 deposit) to qualify – but you need to make sure US money and a credit card are right for you first. Santander Everyday Credit Card also offers a fixed term of 18 months. Unlike other credit card balances on the market, you will be charged a transfer fee for the entire 18-month period (another fee is payable if you do not change debt in the first months after receiving the card).
As a last resort, remember that if you are unable to pay off your debt during the 0% period, you will end up in debt with high-interest rates. Prices usually return between 18% and 22% in April – but there are many scary stories that people are charged up to 30% in April or more! If not, you can earn huge fines and interest for the very large sum!