Interest-Free, Free or 0% Credit



To attract new customers and thus be able to withstand competition, many private creditors offer interest-free or free credits to new customers. But what exactly does “Interest free, 0% credit” mean? Fast loans have become increasingly popular in recent years, and demand for them is increasing, which is why private lenders are trying to offer customers a variety of profitable loan options. Concepts such as free credit, interest-free credit, or 0% credit are often found in the context of the Internet and quick loans.


What does that really mean?

What does that really mean?

In essence, these three concepts mean the same thing – a person who borrowed money must repay the same amount of money borrowed at the end of the loan repayment period, without overpayment. Non-interest-free or free credits are not profitable for the creditor, but such a business model helps creditors to attract new customers, as virtually all private credit institutions have access to interest-free credit only for the first time borrowing. If you want to borrow again for a particular lender, you will have to repay not only the loan amount, but also the money on the loan interest when you repay the loan.

Interest-free loans traditionally have very high interest rates, 100% and even more per year, so offers where you can borrow for the first time for free are very attractive. No matter how good it would be to borrow without overpaying the amount of the loan, it is worth remembering to look very carefully at the offer of each individual creditor and the terms of the loan before the loan. If you need a loan of over € 300, you may have to consider another type of loan or lender. One of the biggest drawbacks of interest-free credit is the amount of the loan as well as other restrictions from the lender. It is possible that the lender has set up a queue to make the first loan free of charge and these rules make the offer of the particular creditor less attractive. That’s why we remind you again – remember, before borrowing, carefully evaluate the terms of each lender!

Interest-free loan repayment

Interest-free loan repayment

Just like any other type of credit, it is very important to repay the interest-free loan at the agreed time. Unlike other types of loans , it is not possible to extend the maturity of interest-free loans in most cases. If it is possible, then you have to expect that the loan will be converted into a regular quick loan with a fixed interest rate that you will have to repay, even though you borrowed interest-free credit at the beginning. The same is true in situations where a private person avoids repayment of the loan at the agreed time, but it should be noted that in these cases the person will not only have to repay the loan interest, but also to pay additional interest for the avoidance of credit obligations. Regardless of whether you borrow for the first time or again, it is important to consider the need for the loan and your ability to repay the loan.


If you have once used your opportunity to receive a non-interest-bearing loan at a particular creditor, this does not mean that this has been the first and last time you have used this opportunity. If you are in a sudden financial hardship, where you need to pay for a service or need to buy a product urgently and you want to receive this loan without interest, then you have to consider choosing one of the creditors who offers interest-free loans and which you have not used before. This is the only way to bypass the system and borrow again free of charge, with 0%.

Of course, as in all cases, Thomas reminds you that the terms of the loan, the reason, the amount and the ability to repay the loan must be carefully assessed before you enter into transactions with a particular credit institution. Quick loans can be a good solution in many different situations, but it is your responsibility to carefully evaluate the situation and decide whether or not to take out a quick credit. If you are in financial difficulties and want to get a quick credit to cover your past credit, then in order not to get into a worse financial situation, perhaps the best solution you should consider is consolidation of fast loans or so-called mergers. You can read more about quick credit consolidation or merger here .

Compare interest-free loans 

Compare interest-free loans with Thomas

Situations where fast credit is needed can come suddenly and unexpectedly, but that does not mean that the credit need not be carefully assessed. Private creditors often advertise with many and different interesting offers, but always remember to carefully read and evaluate all credit terms and conditions so that you do not have to regret that decision later. Each creditor offers a different amount of credit, repayment term, interest rate and other parameters that can fundamentally change the creditor’s attractiveness, depending on your particular situation.


For example, if you want to borrow € 300, then compare and evaluate which lenders lend this amount, how long it is possible to borrow, and whether you can repay this amount at the agreed time, and whether it is possible to borrow at 0% and if not, then what is the APR (annual interest rate) for this loan. If you want to know the exact APR for the amount of money you want to borrow and the credit company, you can find out about it on the website of the particular company or by contacting the credit company in person.

To get the so-called free credit is not enough that you have carefully studied the available creditors and chose the most advantageous credit issuer. Just as you receive any other credit, you must meet all the conditions set by the creditor. It should be noted, however, that these rules may differ between the different lenders, as each institution may set its own limits, but these conditions usually include factors such as:

  • Age

Fast credit after Latvian legislation is available to all citizens who have reached the age of majority, but it must be admitted that the majority of private creditors are reluctant to lend to people under 20 years of age. They credited, owned by LNKA (Latvian Non-Banking Creditors Association) in 2013, and decided not to grant quick loans to persons under 20 years of age. This means that persons at the age of 18 and 19 have the possibility to receive fast loans from private creditors who are not members of the LNKA, but often those non-members of the LNCA do not issue interest-free loans.

Age limits also apply to persons who have reached retirement age, as credit institutions most often limit the age of the loan to the age of 20-75. Credits for people aged 18 and 19 are issued, but the choices between bidders are much smaller, as most non-bank creditors have set an age limit for loans from the age of 20, as most young people between the ages of 18 and 19 are still studying or studying, at their best. in some cases, these individuals do not have a stable income and non-bank creditors are not particularly attractive to deal with. If you are in the 18-19 age group and you have a good reason for the need for fast credit and you are able to pay back these amounts, then with Thomas choose the most appropriate creditor with the most suitable terms and fill out the application for credit. If the creditor assesses you as being able to repay the loan in time, the creditor will approve your application and you will be able to receive a quick loan.

  • Credit history

Damaged or negative credit history can limit your ability to borrow. Bad credit history shows banks and non-bank creditors that you have not been able to repay your credit obligations in the past and that this may result in credit institutions not willing to lend you money because of the increased risk that you will not repay the loan on time or avoid any repayment. Credit history is a tool used by credit issuers to assess potential borrowers. If you have a bad credit history, it may mean that creditors will not want to give you credit. Credit institutions shall carefully evaluate each loan application and evaluate all risk factors that exist when lending money to the individual. If you have reached the age of majority, you have a stable monthly income and a positive credit history, then getting a loan or an interest-free loan should not be a problem.

  • Income

Your income has a decisive role in whether credit institutions want to give you credit or not. To be able to get credit successfully you will have to prove to the creditor that you have regular income. The amount of income affects how much the credit institution will be willing to lend you. If you have a half-time job of receiving € 150 a month, then it may be difficult to convince the creditor to lend you € 500 for 30 days.

Of course, everything depends on each individual situation and will be assessed by the staff of the credit institution in which you apply for credit. Regardless of whether you want to receive an interest-free loan or just one of the types of quick loans, creditors want to make sure that the borrower will be able to repay the full amount of the loan. To ensure that creditors assess the state and stability of the individual’s income before issuing the loan. Unlike commercial banks, private creditors do not need a statement from the State Revenue Service. This means that if a person receives money unofficially, but it appears on a personal account statement, then they have every chance of standing for a loan. Whether it is interest-free or some other type of credit, both for the bank and for private creditors.