Where Can a Person Get Interest Free Personal Loans?

June 30, 2012 by  Filed under: Loans 

Do you need to borrow cash and do not want to pay the interests? It may put you on red alert and sound unlikely; however there are ways how to get interest free cash. Learn how!

If you would like to get interest free cash there are several ways how to do it. Yet you need to be careful in order to avoid being dragged into an even deeper financial crisis.

Do not ask for loans but instead, ask for the cheapest way of borrowing over a certain period of time. You might object that borrowing money and taking out a loan is the same thing. Sure it is but not for the money lenders.

an Interest Free Overdraft Account

One of the ways how to get interest free money is to apply for an overdraft account. Some of them may offer overdrafts up to Ã�£1,200.

One of such accounts is 123 Santander Current Account which offers other benefits as well. These include an interest free overdraft for a year if you use the bank’s dedicated switching service to transfer over your direct debit. As a bonus you will earn cashback on the direct debits you set up:

Earn cashback:

  • 1% on water and council tax bills
  • 2% on gas and electricity bills
  • 3% on communications bills such as phone, broadband and digital TV

However, you will have to pay in £500 every month and an account fee of £2 a month. You should also watch out for the overdraft limit, if you exceed it you will be charged enormous interests!

a 0% on Purchases Credit Card

Another way how to get an interest free loan is to take out a credit card which offers 0% interest on new purchases.

The best 0% purchase credit cards on the market are currently Nationwide Select credit card, which is available only for Nationwide Flex account current holders and Halifax All in One credit card. These two cards vary in the maximum credit limit (depending on your credit rating) and also in the period during which you can make 0% interest on new purchases (usually 15 -18 months).

However, as with overdraft accounts, these borrowings can be made only for a shorter period of time otherwise you will be charged hideous interests. Therefore it is essential to clear your remaining balance before your 0% deal ends. Another point to watch out for is to make sure you repay every month in order to avoid paying fees for late payments or losing your 0% deal.

a 0% on Balance Transfer Credit Cards

If you have already taken out a loan and are paying it back, you can save money on interests by shifting it onto a card offering 0% on balance transfers.

The most favourable 0% balance transfer credit card at the moment is Barclaycard. It offers 0% on balance transfers for 22 months but it also charges 2.9% transfer fee. After the 0% period, the typical APR is 17.9%.

Moreover, make sure to pay off your debt before the 0% period ends to avoid paying huge interests. It is also important to repay the card every month otherwise you could end up not only paying huge interests but also a fine.

If you would like to learn more useful tips and advice then read regularly updated articles at http://portal-loans.co.uk

Article Source:
http://EzineArticles.com/?expert=Andrew_Burghes

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