As a consumer, you see loans with zero percent APR often enough. Especially with car loans and other loans where you don’t get hold of cash but you purchase an item. For garages and shops, a free loan is an attractive way to attract customers. You will not easily come across 0% APR on personal loans, cash reserves and other bank loans.
Good news: the loan is often really free
In contrast to the previously known debit interest, JKP is a total of all costs associated with a loan. In addition to the current annual interest rate, the annual cost percentage also includes all additional costs (such as administration and administration costs). This is a legal obligation on all consumer credit, making it easier to compare. A garage or chain that offers you a loan with a 0% APR may in no way charge credit costs afterwards. You only have to pay off the loan amount. The loan itself is therefore really free.
Less good news: only the sun rises for free
A free loan often turns out not to be the cheapest option when purchasing a car, television or refrigerator. As a consumer you are usually offered the choice between a 0% loan and a discount on the basic price. When you choose a free loan you miss out on the discount on the item. In such cases, it is advisable to calculate if it is not more advantageous to take the discount in combination with a loan that is subject to APR. You can also apply for the loan somewhere else, for example at a bank. It also often happens that a couch or washing machine on which a 0% loan applies is considerably more expensive in the relevant business than at other stores. The credit may be free, but you pay extra for the item. A third construction that is regularly linked to a free loan is a mandatory full comprehensive insurance when purchasing a car. The interest rate on the credit is zero percent, but you could have taken out the same full comprehensive with your own insurance company. Calculation is also wise here.