Using Credit Cards for Short-Term Loans
If you are considering taking out a personal loan from a conventional source, take a minute to consider a another, potentially far cheaper, quicker and easier, way to borrow money, without having any interest to pay at all!
Today, the cheapest personal loans available offer money at a rate of approximately 6% (although this can, and does, often vary between 5% - 7%). However, many lenders only offer their 'typical' rates to customers wishing to borrow more than £7,000, so if you want less, you might have to pay a lot more for it! Supplying larger sums at lower interest rates ensures that lenders get their loan products into best buy tables while maximising their profits from people who just want to borrow a few thousand pounds.
The best lenders around will offer their advertised 'typical' rates to customers borrowing less than £7,000, but they may also require you to have a very good credit rating before they approve the loan.
So, how do I get a 'Free' Loan Then?If you are after a short-term cash injection to pay for a big purchase or settle some relatively small but expensive debts then consider taking out one or even two 0% credit cards. The best credit card deals on the market today will lend you money on a balance transfer for up to 18 months at 0% and for new purchases for 12 months at the same rate.
If you already have debts racking up, on a store card for example, you may have found yourself paying anywhere up to 29.9% APR interest on your overall debt. If this is the case, then transferring your balance to one of the new 0% offers does make financial sense - the bottom line is, it could save you a packet!