Interest Free Credit hack

CuriousDragon

If you are offered interest free credit from companies such as DFS, but you don't need or want to spread it out over a number of years, still take it, over as long a period as they offer.

After a couple of months, ask for a settlement figure and it will be less than the outstanding balance.

This is because the company (DFS or similar) pay the interest on the loan amount up front so that it appears the loan interest really is 0% instead of 5 or 6%. Therefore, the settlement will give you the discount of the interest paid.

CliveOfIndia

CuriousDragon said:

After a couple of months, ask for a settlement figure and it will be less than the outstanding balance.

It'll be less by the amount of payments you've made.  If you borrow £1000 and the monthly payments are £50, after 2 months the settlement figure will be £900.  If it's interest free, you still have to repay the total amount borrowed, it's just that you won't pay any interest.

There's nothing to be gained from repaying early (unlike with an interest-bearing loan).  And if it's one of these deals where you don't have to make any payments during the first year or whatever, you'd be better off putting the money you owe into a savings account and earning yourself some interest on it.

la531983

Doesnt sound believable at all, sorry. They arent going to deduct interest off when that wasnt payable in the first place.