it is possible to get an interest-free loan in some cases. However, eligibility requirements vary depending on the loan type, and some borrowers may not be eligible. For example, some auto loans from dealerships may offer 0% APR financing for a set period, but borrowers typically need a good credit score to qualify. Cash advance apps may not require a credit check, but borrowers generally need a checking account with a positive balance and a steady paycheck. Buy-now, pay-later lenders may perform a soft credit inquiry and require a linked checking account, credit card, or debit card.
Some of the best options for interest-free loans include:
>Earning: offers interest-free cash advances of up to $500 per pay period with no mandatory fees for standard transfers. Eligibility requirements include a steady paycheck, direct deposit into a checking account, and a fixed work location.
- MoneyLion: offers interest-free cash advances of up to $250 without a RoarMoney account or $1,000 with a RoarMoney checking account with recurring deposits. Eligibility requirements include a checking account with recurring income deposits and a positive balance that’s been open for at least two months.
- Chime: offers Instant Loans starting at $100 with a fee for eligible members, as well as the ability to receive loans from family and friends without using cash apps. Chime checking accounts have no monthly, minimum balance, or overdraft fees, and the SpotMe feature covers up to $200 on debit card purchases and cash withdrawals without charging an overdraft fee.
- Affirm: allows retailers to offer installment loans before checkout, with 0% APR options available for some retailers. Affirm’s pay-in-four option allows users to spread out payments without impacting their credit score.
- Sezzle: a buy-now, pay-later company that allows users to split up purchases at checkout and includes thousands of retailers. Sezzle reports payments to credit bureaus, helping users establish a positive payment history. Users must make a minimum purchase of $35 to use the app, and there are fees for failed and rescheduled payments.