Best 0% purchase credit cards April 2017

Sally McMullen 20 April 2017

man-holding-smartphone-credit-card

Avoid interest as you spend for up to 12 months with a 0% purchase credit card.

A credit card can be a great way to free up your cash flow, but it usually comes at the cost of high interest rates. If you have some purchases in mind but don’t think you can repay your entire balance in one statement period and still want to avoid interest, a 0% purchase credit card could be for you.

As there are many 0% purchase credit cards on the market, we’ve rounded up some of the most competitive offers based on the length of the promotional interest-free periods. Of course, the best 0% purchase credit card will depend on your spending plans and your ability to repay the debt. However, this month's roundup of credit cards could help you narrow down your search.

Compare the best credit cards for 0% interest on purchases

Virgin Australia Velocity Flyer credit card

The Virgin Australia Velocity Flyer credit card boasts one of the most competitive promotional purchase rates on the market. With 0% for 12 months, this gives you an entire year to pay off your purchases without collecting any interest if you apply and are approved by 15 June 2017. This is the longest interest-free period on the market by a long shot, with most competing cards offering 0% for only up to 6 months.

Are there any other perks?

As well as the promotional purchase rate, you can also reward yourself with points as you save on interest. You’ll collect 0.66 Velocity Points per dollar spent up to $1,500 and 0.5 per $1 thereafter. This makes it one of the few cards on the market that offers both 0% on purchases and reward points. The card also offers 0% on balance transfers for six months, another feature that makes it unique among other interest-free purchase credit cards.

What are the costs?

While you’ll enjoy 0% interest on purchases, this card doesn’t come without its costs. At the end of the promotional period, any remaining balances will start to collect the standard interest rate of 20.99% p.a. This is a relatively high purchase rate, so you’ll want to make sure you clear your balance before this kicks in to avoid potential debt. The card also comes with a $129 annual fee, so it’s best to calculate whether the amount you’ll save on interest outweighs the annual fee to justify applying for the card.

St.George Vertigo Platinum credit card

The St.George Vertigo Platinum is next up on our roundup of the top 0% purchase credit card offers this month. While the offer isn’t quite as long as its Velocity Flyer counterpart, it does come with 0% on purchases for 6 months for applicants who apply by 1 May 2017. At the end of the promotional period, the interest rate will revert to 12.47% p.a. While this means you’ll collect interest on any remaining or future purchases, it’s a low rate compared to other cards on the market and a competitive offer if you plan to use the card beyond the promotional period.

stg-vertigo-platinum

Are there any other perks?

As well as the 0% purchase offer, you can also look forward to 0% on balance transfers for the first 12 months. The card also comes with a series of complimentary insurances including international insurance and domestic flight inconvenience cover. Plus, you can shop with peace of mind thanks to price guarantee cover, purchase cover insurance and up to 12 months extended warranty.

What are the costs?

As well as the revert interest rate of 12.74% p.a., this card also comes with an annual fee of $99. This is one of the higher annual fees when compared to other 0% purchase credit cards, so you should make sure that it doesn’t outweigh the savings you’ll get from the promotional interest-free period.

Bank of Melbourne Vertigo Visa credit card

Similar to the St.George Vertigo Platinum, the Bank of Melbourne Vertigo Visa also offers 0% on purchases for the first 6 months when you apply by 1 May 2017. However, the differences between the cards are in the details. When the promotional offer ends, the purchase rate will revert to a competitive 13.24% p.a. Again, this is also a relatively low standard purchase interest rate when compared to other cards on the market.

Vertigo Card

Are there any other perks?

Similar to the cards in this roundup, cardholders can also take advantage of 0% on balance transfers for 12 months. If you use the card beyond the promotional periods, you can also look forward to up to 55 interest-free days when you pay your balance in full.

What are the costs?

This card comes with a competitive annual fee of $55, which is one of the lowest you’ll find when comparing 0% purchase credit cards.

If you prefer St.George, you can also apply for the St.George Vertigo Visa credit card for the same 0% purchase offer and annual fee.

How do these 0% purchase credit cards compare?

While each of the cards has their own perks and downfalls, how do they compare when we put them head to head?

Rates last updated November 24th, 2017
$
Name Product Product Description Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee Interest Free Period Amount Saved
Virgin Australia Velocity Flyer Card - 0% Interest Offer
Save with 0% p.a. on purchases for 12 months. Plus, up to 0.66 Velocity Points per $1 spent.
0% p.a. for 12 months (reverts to 20.74% p.a.)
0% p.a. for 6 months
$129 p.a.
Up to 44 days on purchases
St.George Vertigo Platinum
Offers a long-term balance transfer, low ongoing purchase rate, complimentary travel insurance and access to a 24/7 personal concierge service.
12.74% p.a.
0% p.a. for 24 months with 1% balance transfer fee
$99 p.a.
Up to 55 days on purchases
Bank of Melbourne Vertigo Visa Credit Card
Save with a $0 first year annual fee and a 0% p.a. for 18 months balance transfer offer. Plus, up to 55 days interest-free on purchases.
13.24% p.a.
0% p.a. for 18 months with 1% balance transfer fee
$0 p.a. annual fee for the first year ($55 p.a. thereafter)
Up to 55 days on purchases
St.George Vertigo Visa
Save with a $0 first year annual fee and a 0% p.a. for 18 months balance transfer offer. Plus, up to 55 days interest-free on purchases.
13.24% p.a.
0% p.a. for 18 months with 1% balance transfer fee
$0 p.a. annual fee for the first year ($55 p.a. thereafter)
Up to 55 days on purchases

Compare up to 4 providers

While there is no one best interest-free credit card, comparing the features, rates and fees can help you determine which one is right for you. For example, if you have a large debt you want to pay off over an extended period, the Virgin Australia Velocity Flyer credit card and its 0% for 12 months offer could be a good fit. If you intend to use the card beyond the promotional period or are worried about attracting high interest when the introductory offer ends, the low revert rate of 12.74% p.a. on the St.George Vertigo Platinum credit card could help keep costs low. Otherwise, if you wish to avoid high annual fees, the Bank of Melbourne Vertigo Visa could come in handy. Not mentioned in this roundup but useful to note, ANZ's Platinum Credit Card is one of the few cards with 0% on purchases and no annual fee for the first year.


All products compared offer individual perks but you can use our 0% purchase credit cards guide to complete a more in-depth comparison and weigh up which card can help you save the most on interest.

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