An interest-free loan is a credit that does not have a commission or an interest rate. It is often referred to as a credit with a 0% commission or free credit.
This free name is logical because the borrower has to return exactly the amount of money he was borrowing. This means that you do not have to pay for this money loan service. It should be noted that such loans in two different forms are offered by lenders from both the banking and non-banking sectors.
Lending lenders in the non-banking sector offer quick loans
which for the first time are free of commission, or without any interest. This is a very profitable marketing strategy because potential customers often intend to be able to get even more credits under such conditions. This can be done if the customer borrows from another lender after each first interest-free loan.
Of course, the number of such lenders is limited and it would be best to re-borrow money at the most advantageous lender, because the business principles and customer service options are different. In turn, banks offer credit cards with an interest-free credit limit.
Each customer has a maximum amount of credit that he may spend on his choice, but the amount of money spent must be returned to the card account by the end of the current month or until a certain date in the following calendar month. If the amount is not refunded in full, interest will be charged for the delay.
Each bank offers its credit card customers very favorable discount
Plans and takes care of customer interests. Borrowing interest-free loans with bad credit history may seem problematic initially.
However, you have to think about different aspects that may affect the creditor ‘ s decision. There is no exact definition of bad credit history, because each person’s loan commitments are individual and it is not determined at what point in time the credit history can be called bad.
Bad credit history is one in which the borrower has had problems
With repaying previous loans or has started a debt recovery process. All of this information is seen by every creditor – it is studied in more detail by banks, but it is viewed by issuers of quick loans in general.
If past delays or indebtedness have been just a coincidence and, for example, a few days late payment, the creditor will definitely issue the loan. If the customer is able to prove his / her solvency in a reasonable manner and inform the creditor openly about his / her previous obligations, then in accordance with all the requirements.