Most of the loans that you see on the market are not 0% interest loans because if lenders didn’t charge interest, their business plans would not be sustainable. Usually, you will find that loans have interest that is based on a percentage from the amount that you borrow, which covers the lenders’ costs but despite this, there are some lenders who offer 0% interest loans. However, they may not always be ‘free’ loans and you should be wary.

At QuidMarket, we do not offer 0% interest loans, but we want to provide you with a thorough scope of all the loans that are available to you, which should help you to make an informed decision when it comes to securing a loan. By researching loan types, and factoring in your budget and needs, you will hopefully find a loan that suits you. On this page, we will be covering 0% loans, why you might consider 0% interest loans, and alternatives that may be more suitable.

What Are 0% Interest Loans?

0% loans are advertised as being interest-free, but the chances are that these cash loans are not completely ‘free’. In many cases, you may find that there are other terms attached, so before you apply, it is crucial to understand what you are applying for and why a lender may offer 0% loans. Many may have fine print that makes the loan sound much less appealing, such as late repayment fees and fees outside of the 0% interest period.

Usually, a 0% interest loan is attached to a product, for example, car retailers may offer 0% loans if you purchase their new car. This because the company can apply a markup on the car that they sell, so there is no need to offer a loan with interest. However, the same car retailer may offer a cheaper price to someone paying up front and opting for a regular loan with interest, which means that you may have potentially paid more. The difference between the two scenarios is the true cost of the loan.

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£300 £1500

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This is for illustration purposes only. Your repayment schedule will be confirmed during your application

*All applications are subject to affordability checks*

Representative example: Borrow £300 for 3 months / Interest payable £154.38 / Total amount payable: £454.38 in 3 instalments / 3 payments of £151.46 / Representative 1299.7% APR / Interest rate 292% per annum (fixed) / Maximum APR 1625.5%

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As a new customer the minimum repayment period is 3 months and the maximum is 6 months. Additional options may be available to you as a repeat customer.

Is There A Difference Between 0% Interest Loans & 0% APR Loans?

In short, yes, there is a difference between 0% interest loans and 0% APR loans. Interest refers to the percentage of your loan that is added to your monthly repayments each month and does not factor in any other fees. APR stands for Annual Percentage Rate and covers all of the extra costs involved in the loan. Both of these deals are usually offered over a promotional period to pique your interest, however, if you do not repay the full amount back on your 0% APR loans within the promotional period, you may be faced with high interest rates on what is left to pay. This may also be the same for 0% interest loans, but the other costs will not be factored in to your monthly repayments, so you may end up paying more than you expected.

While it is possible to take full advantage of 0% loans, whether 0% APR or interest, but you must be diligent and pay off the full amount before the 0% period ends. If you still have remaining credit to pay back after the promotional period, it is likely that you will need to pay it back with high interest rates.

Can I Secure 0% Loans With Bad Credit?

Typically, individuals with bad credit are seen as high risk applicants to most lenders, and while many will offer bad credit loans with decisions based on affordability, the interest rates will usually be quite high. This means that you may find it difficult to secure 0% interest loans if you have poor credit history and may need to consider other lending options if you would like to avoid paying interest.

While they are not 0% interest, our bad credit loans are designed to help you cover unexpected costs, such as when you need to replace the boiler or repair your car. We take a personal approach to each application and base our lending decision on affordability, rather than your whole credit history. This means that we look at your income and your essential monthly spending to ensure that you are not left out of pocket after your loan repayments. You will also find similar affordability checks from no credit check loans, which are another available option for those with poor credit.

Alternatives To 0% Interest Loans

0% loans may sound like an attractive option, but they have the potential to leave you in further financial difficulties if you don’t pay the full loan back within the 0% period. This means that they aren’t the best solution for everyone, particularly if you need a long term solution, but there are a few other options that may be more helpful, depending on your current finances.

Borrow from friends or family – with personal borrowing, you are opening the door to 0% APR loans on your own terms. If you are confident that you won’t ruin personal relationships, borrowing from family or friends and reaching an agreement that suits both parties can be a great way to borrow money, especially if they aren’t looking to add an interest rate.

Use your savings – if you have a considerable amount of money in savings accounts, it could be worth considering whether you have the funds to cover the cost without taking out a loan and save more money in the long run.

Use a credit union – credit unions have their members’ best interests at heart and typically offer much lower interest rates than direct lenders. They have a cap on the amount of interest that they can charge (3% a month or 42.6% APR), which means that you have an understanding of the maximum you can be charged. Credit unions operate with three main aims, which are to encourage all members to save regularly, provide loans at low rates and help members in need of financial advice. They do not let members take out loans that they can’t afford and offer advice, no matter their members’ financial situations.


QuidMarket do not offer 0% interest loans, but we do offer short term loans over a period of 3-6 months and a tailored repayment plan to suit your budget and needs. Our loans are designed to be used in an emergency situation or to cover any short term cash flow issues, so should not be used for any long term financial support. For more information, contact the experts at QuidMarket or for financial support, visit the Money Advice Service for free and impartial help.

Warning: You should never pay upfront fees for a short term loan or send money in return for a short term loan. Late repayment can cause you serious money problems. For help, visit: