Borrowing money comes at a cost. Depending on the lender, you might need to pay application fees, origination fees, and late payment fees. You also must pay interest on the loan, which can be the most expensive part of borrowing money. That makes the idea of no-interest personal loans appealing. But can you really borrow […]
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Borrowing money comes at a cost. Depending on the lender, you might need to pay application fees, origination fees, and late payment fees. You also must pay interest on the loan, which can be the most expensive part of borrowing money.
That makes the idea of no-interest personal loans appealing. But can you really borrow money through a personal loan without accruing interest? Below, we’ll walk you through personal loan options that don’t charge interest and the risks of these kinds of no-interest personal loans.
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In short, you can’t get a traditional personal loan with no interest. A personal loan—secured or unsecured—will always have an associated APR. That’s part of how personal loans work: Lenders offer them because they can make money from borrowers through interest.
However, the following borrowing options address the same goals as personal loans—and come without interest. (Click the loan type in the list below to jump to our discussion of how it works and where to get one.)
“If you’re considering no-interest personal loan options, such as BNPL loans or 0% APR credit cards, ensure you can repay the balance before or by the time the interest rate changes or the lender or company begins charging astronomical interest rates.”
So where can you get these no-interest loans? Often, it depends on your credit history and what you’re trying to finance.
A traditional cash advance allows you to withdraw cash using your credit card. You’ll typically pay a transaction fee plus interest on the loan from your credit card—and that interest starts accruing right away.
However, some financial technology (fintech) companies offer payday cash advances without interest. These aren’t your traditional payday loans; instead, these app-based companies allow you to borrow a portion of your scheduled paycheck without interest up to a certain amount.
Often, a credit check is not associated with these loans.
To participate in these interest-free cash advances, you’ll usually need to connect your bank account to the payday advance app and let the company monitor your direct deposit a few times to understand your income and payment schedule.
Then you can start borrowing money you’re scheduled to receive. The best cash advance apps don’t charge interest and may just ask for a “tip” or charge a fee for immediate payment (otherwise, you might need to wait a few days).
If you borrow part of your paycheck in advance, you’ll make less money come payday. Don’t dig yourself in a hole later by using up all your cash now.
The top interest-free cash advance options include EarnIn, MoneyLion, and Dave. The table below shows the lender’s name or app, and you can click the name to visit its website.
| App | Borrow up to | What to know |
| EarnIn Cash Out | $750 per pay period | You can leave a “tip” every time you get cash early Limited to $100 per day Fee for instant payments (Lightning Speed) |
| MoneyLion Instacash | $500 per pay period | Get additional Instacash with a paid monthly membership Fee for instant payments (Turbo) |
| Dave ExtraCash | $500 | You can leave a “tip” every time you get cash early Fee for instant payments |
BNPL loans have become popular, in part because they often have zero interest. This form of short-term financing enables you to spread payments over weeks or months.
You can use one of many online apps for BNPL loans (also called point-of-sale loans), but many merchants offer BNPL programs at the counter when you make a purchase.
Some BNPL lenders may require a hard credit check, but many do not. Instead, you’ll offer basic personal information, make one upfront payment, and then schedule the remaining payments.
The table below shows four of the most popular BNPL lenders in the market. You can click the lender’s name to visit its website.
| Lender/app | What to know |
| Klarna | Split into 4 payments, 30 days, or long-term financing |
| Afterpay | Pay over 6 or 12 months or in 4 interest-free payments |
| Affirm | Pay in 4 (every 2 weeks) for interest free, or make monthly payments |
| PayPal | Divide into 4 payments or monthly payments for interest-free |
No credit card will give you 0% APR forever, but many have 0% APR introductory fees, sometimes up to 21 months. Research the best 0% APR credit cards to find options that allow balance transfers—moving debt from a high-interest credit card to a new card—and have long 0% interest periods.
For several months, you won’t pay interest on the balance you carry on a 0% APR credit card. However, it’s essential not to rack up too much debt; at the end of the introductory period, your debt will start to amass interest, and credit card APRs can be high.
In addition, one missed or late payment may cancel the 0% APR, and the debt you’ve taken on could retroactively earn interest. Be careful how you use and pay off these 0% APR credit cards.
Most major credit card companies have 0% intro APR offers for credit cards, and many have no- or low-interest options for balance transfers. The table below shows three of the best balance transfer cards available.
Click each company’s name in the table to visit its website.
| Company/card | 0% APR intro period | What to know |
| Citi Simplicity | 12 months for purchases, 21 months for balance transfers | No interest on balance transfers for the first 21 months |
| Capital One Quicksilver | 15 months | Earn 1.5% cash back on all purchases |
| Discover Balance Transfer Credit Card | 15 months | Allows balance transfers, but they carry a 3% intro fee |
Medical debt is one of the major reasons for taking out a personal loan. Still, some borrowers may avoid origination fees and interest payments by working out a payment plan with the hospital.
Depending on your financial situation and the hospital’s programs, you might be able to get treatment now and repay your bills with zero interest. Your best bet is to speak with the hospital’s billing department.
This can extend to your four-legged friends too. Companies such as CareCredit allow you to borrow money for a set time without interest. Your best bet, though, is to carry pet insurance to help with high vet bills.
Big-ticket items—houses and cars—have specialized loans, e.g., mortgages and car loans. You can get loans for less expensive (but still costly) purchases, such as furniture and appliances.
Ask the salesperson on the showroom floor what financing options they offer. Many have programs to help you pay off the purchase with zero interest as long as you keep up with the payment schedule.
No-interest personal loans carry risks, such as:
Our expert recommends
Be sure you create and stick to a reasonable budget—and give yourself the grace to get back on track if a month or short period occurs when you stray from your plan. Consistency and discipline are essential, but life happens, so don’t get discouraged. Build in “fun” money savings to enjoy life while sticking to your budget. Planning helps avoid overspending and impulsive decisions.
These no-interest personal loan alternatives may seem attractive, but you’re likely better off with a low-interest personal loan or credit card in the long run. You’ll need a steady income and a strong credit score to get a personal loan with the best rate.
It varies by lender, but the credit score you need for a personal loan at a competitive rate is 670 or higher. Those with excellent credit (800 or higher) will get the lowest personal loan rates.
Personal loans with a fixed interest rate may be a better choice than a no-interest personal loan because:
Many personal loan lenders report your payment history to the credit bureaus, meaning you can improve your credit score during the life of your loan.
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