How to get a 0% loan
Martin's 10 ingredients to safely get NO COST borrowing

Know what you're doing and a 0% loan really is possible. Borrowing is dangerous though, so you need to keep tightly to the right recipe.

So I shall pop on my chef's hat and show you the key ingredients, to ensure if you do need to borrow, it's as cheap and safe as possible. First the basics - then, for the icing on the cake, the clever stuff (OK, I think I've overdone the cooking analogy now).

1. Never just apply willy-nilly - that marks your credit file. Use credit detective tools to uncover YOUR best deal. Apply for a loan or credit card and it usually puts a mark on your credit file that lasts a year, and too many of these can have a negative impact.  
   
   To help you minimise applications, we've two free tools that let you home in on the card or loan you're most likely to be accepted for - without any credit impact - so you can have a play to see what's out there...
    
   - Eligibility calculators: Quickly fill in your details and they reveal your winners. The calcs include Loans Eligibility | 0% Purchase Cards | 0% Balance Transfers | 0% Money Transfers. The calcs include most top deals but occasionally we're unable to include a few of them.
    
   - MSE Credit Club: The free MSE Credit Club includes all eligibility calcs plus your free Experian Credit Report, credit hit rate and credit and affordability scores. The registration process takes a little longer, but once in you can view all the calculators' results.  
   
   
2. How to get a 0% loan? Pervert your plastic. There are no 0% loans, but there are 0% credit cards, so the game here is to turn the cards into a loan.
   
   The easy way to do this is also the cheapest, but it only works when borrowing for something you can pay for by credit card eg, a washing machine (if not skip to point 3). Card credit limits above £3,000-£5,000 are tough to get, so it's best for smaller borrowing.
   
   Use the 0% Purchases Eligibility Calc to see what your best card is. For example, Sainsbury's Bank* 31mths 0% is the current longest 0% period (it also gives Nectar points on spending).
   
   Once you've got a card, buy your planned purchase on it, ensure you never miss a minimum monthly repayment and repay within the 0% period and IT'S TOTALLY FREE. Fail to clear it within that time though and the rate rockets (eg, Sainsbury's jumps to 18.9% rep APR). More info in Top 0% Cards.
   
   - Quick Tip: To truly replicate a loan, set up a monthly direct debit to repay a fixed amount which'll clear the debt before the 0% ends.
   - Quick Tip: Once you've done the planned spending, freeze the card in a bowl of water, to ensure you don't use it willy-nilly.
   - Quick Tip: If you really don't trust yourself with a credit card, don't risk it; a cheap loan may be a bit costlier, but safety counts.
   - Quick Tip: Some retailers used to add fees if you paid by credit card, but since 13 Jan '18 they've been banned.
   
   Once you have a card, follow the golden rules of repaying at least the min monthly repayment each month (as miss it and you can lose the 0% period) and never withdraw cash on the card.
   
   
3. Need a '0%' cash loan? Use a money transfer card. If you need actual cash, or to, say, pay off an overdraft, a few cards offer new cardholders 0% money transfers. Here, for a one-off fee, you ask it to transfer cash to your bank account, which you then owe to the card. Use the 0% Money Transfers Eligibility Calc to see what you can get.
   
   Eg, if you can repay quickly, Virgin Money's* 20mth 0% money transfer fee is 2.5% of the amount shifted. The longer you need, generally, the bigger the fee - the longest, from Tesco Bank (not in the eligibility calc) is up to 36mths 0%, with a 3.94% fee.
   
   Once you've got the card, ensure you repay it within the 0% period. Fail to clear it within that time and the rate rockets (eg, Virgin is 20.9% and Tesco is 20.6% rep APR).
   
   How cheap is it? If you borrowed, say, £1,250 over 2yrs, done right the cheapest 2yr money transfer card fee would be £38. The market's cheapest loan, for the same, is Zopa's 9.9%, costing £133. 
   
   Yet do make sure you understand exactly how this works - full step-by-step help is in our 0% Money Transfers guide.
   
   Quick Tip: Do read the quick tips and golden rules in point 2 above, as most of them apply here too.
   
   
4. Borrowing £3,000+? The cheapest actual loans are 2.8%. For bigger loans, the issue with plastic is getting a big enough credit limit. So then a loan becomes the prime option.
   
   But loan acceptance isn't just about your credit score. Your affordability score (see yours via MSE Credit Club) counts too, especially for large loans, as if lenders think you may struggle to repay that amount, they'll reject you.  
   
   The Loans Eligibility Calc incorporates this, showing your acceptance odds. Always borrow as little as possible and set the shortest affordable repayment time (longer borrowing accrues more interest), being careful never to miss a monthly repayment. Here's an indication of the best buys (borrowing over 1-5yrs unless stated).
   
    - £3k-£4,999: Zopa's* 5%-6.9% rep APR, Admiral* 7.7% rep APR.
    - £5k-£7,499: Admiral* is 3.3% rep APR, Zopa* 3.4% rep APR.
    - £7.5k-£15k: M&S Bank* (1-7yrs) & Yorkshire* / Clydesdale* are 2.8% rep APR. Full help in Cheap Loans.
    
   - Quick Tip: All personal loans are 'representative APR', meaning only 51% of those accepted need to get the advertised rate.
   - Quick Tip: Nationwide promises to beat any loan its current account customers are accepted for (excl peer-to-peer lenders like Zopa), by 0.5 percentage points.
   - Quick Tip: Is your borrowing for a new car? If so there is a range of other options too - see our Cheapest Car Finance section.
   
   
5. Just because you can get cheap borrowing, doesn't mean you should - FOUR QUESTIONS to ask yourself. Debt is like fire - use it right and it's a powerful tool, use it wrong and you get burnt. So before you borrow, ask yourself...
   
   - Do I really need to borrow? Be tough on yourself. If you do, borrow the very minimum. Better to wait and save.
   
   - Is this a planned purchase? The worst borrowing is where you keep doing it to fill gaps in your income, which risks a debt spiral. Don't do it. Only borrow for a one-off, planned, necessary purchase, eg, paying for annual car insurance as it's cheaper than monthly.
   
   - Have I budgeted for affordable repayments? Do the numbers. If you can't afford it, even if you really need it, don't do it. It'll likely make life worse, ruin your credit score and add stress and pressure.
   
    - Can't get a loan or only offered a hideous rate? It's likely because lenders have evaluated your finances and decided there's a risk you can't repay. See that as a warning - it's best not to borrow. If you've a crisis see our crisis loans help or talk to a credit union.
   
   
6. Looking for a loan to repay existing credit card debt? The cheapest way to do this is usually a balance transfer. That's where you get a new card that pays off debts on old cards for you, so you owe it instead but at 0%. Our 0% Balance Transfer Eligibility Calc shows you top cards and Balance Transfers guide explains it.
   
   
   And now on to the clever stuff...
   
   
7. THE CLEVER STUFF I: With personal loans, bizarrely, borrowing MORE can cost less. While generally you should try to minimise borrowing, a peculiar quirk means with loans sometimes you pay less by getting a slightly bigger loan. This happens as rates decrease at set thresholds (see point 4).
    
   For example, if you wanted to borrow £4,900 over 5yrs, the cheapest loan is 6.8%, so in total you repay £5,794. Yet borrow £5,000 and as the rate drops to 3.3%, the total repayment is £5,431 - that's £363 LESS even though you borrowed £100 more.
   
   So if you're borrowing close to a threshold (£2,000, £3,000, £5,000 or £7,500) use our Loan Cost Calc to see if you're better off borrowing a tad more (assuming you're accepted for the advertised rate).
   
   
8. THE CLEVER STUFF II: You're not certain to get the rate on a loan, you are on some credit cards. Use the Loans Eligibility Calc and while it shows your odds of acceptance for each loan, only 51% of accepted applicants have to get the advertised rate (we're working on trying to uncover this before application too).
   
   However, use the Credit Card Eligibility Calc and with some top 0% cards that you can use as loans you get more certainty due to...
   
   a) Pre-approval. The tool can pre-approve you for a few cards, meaning as long as you've given correct info, you've 100% chance of that deal.
   
   b) Non 'up to' cards. Most card 0% deal lengths are 'up to' - meaning you're not certain to get the headline 0% length - but some deals aren't. While banks don't necessarily explain this, we highlight them, so if you see a card without an 'up to' and you're accepted, you will get the 0% length shown.
   
   
9. THE CLEVER STUFF III: There is a way to give yourself a much longer 0% credit card loan, but it's risky. The longest 0% cards last little more than 30mths, which is relatively short for a loan. Yet if you simply shift the debt before the 0% ends to a no-fee balance transfer card, you can extend it at no cost.
   
   But this relies on no-fee 0% transfer deals still existing when your 0% card ends, and your credit score still being top-notch so you're accepted. So only do this if you're sure.
   
   
10. Are you in debt crisis? The options above are for new, planned borrowing. Yet some try to borrow their way out of debt. It doesn't work. Do any of these apply to your existing debts?
    
    - You can't even meet minimum monthly payments.
    - You have non-mortgage debts bigger than a year's salary.
    - You have sleepless nights or depression/anxiety over debt.
    
    If so, don't borrow more, get free, one-on-one debt-counselling help from Citizens Advice, StepChange or National Debtline. And if you need emotional support too, try CAP.
    
    They are there to help, not judge. The most common thing I hear after is: "I finally got a good night's sleep". Read inspiring stories in our Debt-Free Wannabe forum and see our Mental Health & Debt guide. Full info: Debt Crisis Help.