16 The Best Ways To Borrow For Free

Sep 29, 2022 By Susan Kelly

It is important to remember that all loans are interest-based payments on the loan's principal, and cost involves financial institutions that charge different rates for different loans.

And what is more interesting than finding out how to borrow without being charged huge high-interest rates?

Here are some tips.

1. Find a lender who offers flexible repayment options

Some lenders offer flexible options as low as 3% and up, while others ask their customers to pay over time with one large lump sum payment at the end of the year. It all depends on your needs and personal circumstances.

2. Ask for a temporary loan

Some lenders will offer you a short-term loan paid back at the end of the year. This allows you to pay off your debt over time.

Some people like this if they have an emergency or unexpected expenses that need immediate payment or have to take on extra work to make ends meet.

If you are in this boat, it is best to shop around because some lenders may charge exorbitant interest rates. (upwards of 8% every month).

3. Try borrowing through cash advance loans

This option involves borrowing and paying back cash, usually within two weeks. They are typically paid off in installments and can be had for very little interest.

Think of it as an interest-free loan, which you pay back over time and with the loan fees included. However, most companies will charge extra for late fees or missed payments.

4. Look for an unsecured loan

Unsecured loans do not require collateral and are available for varying amounts.

This option is only recommended if you have excellent credit and never missed a payment or made late payments on your previous loans or credit cards; otherwise, the lender will worry about repaying and ask for collateral to ensure that you keep up with fees.

5. Try a private student loan

As the name suggests, this loan is for students only; it usually comes with a low-interest rate and flexible payment options. Most private student loans require that you complete all payments on time and can be based on your credit score.

However, some lenders may also require proof of income or even previous school tuition as collateral if you have no credit history. You may also have to take out insurance policies to protect the lender against any accidents or problems with your car, house or other assets for which the loan was taken out.

6. Look into the guaranteed loans

These loans are usually backed by another financial institution or entity, making it easier to get a loan with no credit or collateral involved. The guarantee usually involves charging a higher interest rate until you pay down your loan and may even require a relatively high down payment.

7. Try applying for an unsecured credit card

If your credit history is spotty or very bad, it is advisable to find a type of unsecured loan that allows you to borrow within your budget.

An unsecured credit card would be suitable for such circumstances as long as you avoid spending money you do not have and make late payments. Instead, you should use your credit card and pay off the entire bill every month to build good credit.

8. Try a balance transfer

This type of loan may be a good option for those who want to consolidate debt and pay off their debts quickly and efficiently.

A balance transfer helps you switch all your balances from various cards onto one card with a lower interest rate as long as you have excellent credit. However, this is not the route if you have poor or terrible credit. Instead, try to get rid of some of your debt before considering this option.

9. Ask your friends and family

Asking your family or close friends for a loan is a good idea, especially if they are in the same economic boat. No interest is included, meaning you will not have to pay extra fees or interest on the money you borrowed from them.

However, you should be careful about this option because it may strain your relationship with them if you do not make payments on time or need more than originally asked for.

10. Try getting refinancing loans

These are great options for those who want to consolidate their debts and make monthly payments easier to handle.

You simply borrow from the new lender, which will offer you all the same features as your previous lenders, and repays the loan promptly at the end of every month. Again, this loan is best for those with bad credit or a good payment record.

11. Shop around for low-interest loans

It is always recommended that you shop around to find a cheaper interest rate, as whatever interest rate you choose will be reflected in your monthly payment amount.

Several lenders are offering low-interest loans to people with bad credit. Still, they do not usually require collateral, making it easier for you to achieve a lower payment amount each month.

12. Try searching for no credit check loans

This option is for those who want to get rid of some debt but are still looking for a cheaper interest rate or prefer a riskier loan.

You can get such loans from thrift institutions, credit unions, and banks. However, these types of lenders often have specific requirements and may require that you have a good credit history or simply a decent down payment.

13. Try looking at the right kind of lenders

As long as you do not have bad credit or pay late payments on any previous loans or lines of credit, plenty of lenders will lend you money with very little trouble or paperwork involved. A bad credit rating is not one of them.

14. Know how to find the best and cheapest interest rate

Before applying for any loan with a bank or other lender, you must determine the minimum and maximum payment amounts.

This will help you keep a close eye on your finances throughout the year. After budgeting, you can easily control your expenses without going into debt.

15. Keep an open mind

One of the worst things that can happen when you require a loan is that you get one that has high-interest rates or requires a lot of paperwork, like proof of income or collateral.

Sometimes, you may have to take out a loan that is not what you initially wanted. Still, with careful planning and research, you will be able to find a lender that suits your needs and can provide you with money that is low in interest rates and has very little paperwork involved.

16. Understand the difference between secured and unsecured loans

Both loans have their benefits, but when it comes down to them, there are huge differences between secured and unsecured loans.

Some lenders will want immediate repayment from the borrower in exchange for providing them with a loan. In contrast, others provide home equity lines of credit that allow the borrowers to borrow more than they already own, such as collateral or other assets.


So there you have it. 16 ways to borrow for free and improve your financial situation. If you’re looking for a way to get out of debt, these methods can help you.

But remember, using any of these strategies requires discipline and dedication. Start small and work your way up until you’ve paid off all your high-interest debt. Then enjoy the peace of mind that comes with being debt-free!

What method will you use to borrow for free today?

Related Articles