Did you know you can pay in 3*, interest free for treatments ranging from £100 to £1,000? (2024)

FAQs

What does 3 interest-free payments mean? ›

Pay in 3 is an interest-free loan that lets you split your basket into 3 repayments, with the first due at time of purchase and subsequent repayments due every month on the same date.

If approved, you make a small down payment, such as 25% of the overall purchase amount. You then pay off the remaining amount in a series of interest-free installments, usually over a few weeks or months. Payments can be deducted automatically from your debit card, bank account, or credit card.

There is no interest to pay

With this type of payment plan, companies agree to sell you their goods on credit with no interest. One of the biggest advantages of this is that it lets you spread out your payments without paying any extra on the total price.

Pay in 4 is an interest-free installment loan that lets you split your purchase into 4 payments, with the down payment due at the time of the transaction and 3 subsequent repayments made every 15 days thereafter.

Michael Zuber, author of One Rental at a Time and former tech worker turned real estate investor, told Fortune that a 30-year fixed mortgage at a rate of 3% is without question one of the best assets most homeowners will ever have.

In the right circ*mstances, an interest-free payment plan could be a good choice. Generally, only go for it if you qualify for an introductory 0% payment period and you feel sure you can pay off the purchase in time.

“This itself is a potential warning flag for regulators as it indicates cardholders may be paying off debt with debt: with a 0 percent interest BNPL debt potentially leading to a debt spiral incurring 20 percent credit card interest rates,” the researchers write.

With an interest-free deal, the cost of a product or holiday is typically put on a credit card or store card, which you pay off over time. The card has an interest-free period that applies for goods or services provided by a retailer. An interest-free deal is different to buy now, pay later.

A credit card purchase rate of 0% is an introductory offer and will last for a fixed period, usually a few months. After this period, your lender will start to charge interest on purchases.

Some accounts may provide an overdraft with an interest-free amount. This means you'll only pay interest on any money you borrow above that amount.

Why do companies offer interest-free payments? ›

Companies that offer zero-interest loans tout these vehicles as no-lose opportunities for borrowers. A major purchase that might otherwise require a lump-sum payment can be spread out over 12 months to several years, with 0% interest, thereby creating a more palatable cash flow situation.

Zero percent financing is a loan that doesn't charge interest, either for the entirety of the loan or for a certain period of time. But I don't want you to get confused: Zero interest doesn't mean free.

With a 0% interest rate offer, you use your credit card without paying interest on your balance for a set period of time. This usually relies on you using your card for its intended purpose (e.g. card purchases or balance transfers) and paying off your balance before your offer ends. What is an interest rate?

For example, if a bank charges an interest of 3% on a loan per annum, it means that you will need to pay an additional 3% of the principal amount every year until the end of the contract.

You usually need a very high credit score to qualify for zero interest loans. Zero interest car loans usually come with a higher price tag, expensive extras and strict repayment terms. If you miss even one payment, you lose your 0% interest rate and get charged late fees.

Some accounts may provide an overdraft with an interest-free amount. This means you'll only pay interest on any money you borrow above that amount.