If you are looking for the best loan deals with the cheapest interest loans (as in zero interest), you are looking for a free payday loan. The short answer is 'yes', they do exist. But what's in it for them, and more importantly for you, is there a catch? Get the details in this article.
Free payday loans
The answer The short answer is 'yes', there are free payday loans. What does 'free' mean? Free means zero interest. It does not mean free money. This is the next, best thing to free money, though. Borrowing money without having to pay for the interest sounds good enough, and the lender isn't even your friend or relative.
What's in it for me?
Can you use a free payday loan? Sure, why not (if you are looking to apply for cheap loans online)? The interest rate for loan deals like these usually fall in the range of 15 to 30 percent, and the average is around 25 percent. This is a big difference relative to zero percent, as big as 15 percent at the minimum.
What's in it for them?
Why do lenders offer free payday loans? After all, the interest is the lender's profit. The higher the rate, the more they are profiting. If they give you an interest free loan, they don't make any money from doing business with you (not to mention the risk that they are already taking, lending money to you). What is in it for them? All this is a marketing tactic. This is a great way to get new accounts also known as new customers, don't you agree?
Is there a catch?
A marketing tactic
Firstly, you better read the fine print. If this is a marketing tactic to get new customers, what the lender hopes for, is your future business. As you return to him again, he will of course make a profit. Another thing is that, he may charge you a higher rate, relative to some lenders in the market.
Shop and compare lenders
You may have got a zero interest loan from him the first time, but this does not mean that you do not have to shop (to compare) the second time you need a loan at a low rate. Still looking for the best rate loans (as in zero interest)?
You had better find a new lender who uses this marketing tactic.