Best 0% purchase credit cards June 2017
Cut down your interest costs by getting a credit card with 0% interest on purchases for up to 12 months.
The average Australian credit card holder carries a debt of $3,106. Of this debt, a whopping $1,922 is collecting interest. If you’re one of the many Aussie cardholders who struggles to repay their balance in full each month, a credit card with a promotional 0% interest rate on purchases could help you cut back your interest costs when paying off your plastic.
Many banks offer interest-free purchase promotions, so you’re not strapped for options. The tricky part is finding the right one for you. To help make things easier, we’ve rounded up some of the best 0% purchase credit cards based on the longest promotional offers that are available on finder.com.au.
While there is no one best credit card and the right 0% promotional offer will vary depending on your needs, you can start your comparison here.
Virgin Australia Velocity Flyer card
Once again, the Virgin Australia Velocity Flyer credit card has topped our list of the most competitive 0% purchase credit cards on the market. With 0% on purchases for 12 months, this card gives you a full year to repay your purchases without collecting interest. Cardholders must apply and receive approval by 31 July 2017 to qualify for the offer. At the end of the promotional offer, the remaining balance will collect the standard purchase rate of 20.74% p.a.
This card is also one of the few products that currently offers both 0% on purchases and reward points. Cardholders can collect 0.66 Velocity Points per $1 spent up to $1,500. An earn rate of 0.5 Velocity Points per dollar will apply thereafter.
This card comes at the cost of a $129 p.a. annual fee. So make sure to calculate whether the amount you’ll save on interest outweighs the annual fee to justify applying for the card.
Westpac Low Rate card
The Westpac Low Rate credit card comes in second with its promotional purchase rate of 0% for 6 months. At the end of the promotional offer, any remaining balance will collect a low standard purchase rate of 13.49% p.a. This is good news if you plan to use the card after the promotional period or if you’re unsure if you can repay the entire balance before the introductory offer ends.
This card also offers 0% on balance transfers for the first 12 months and has a low annual fee of $59.
This card is available to cardholders who apply and get approval by 28 June 2017, so you only have a few more weeks to take advantage of this promotional offer.
Westpac 55 Day Platinum credit card
Making this the second Westpac offer in the line-up, the 55 Day Platinum credit card also offers a promotional purchase rate of 0% for the first 6 months. Also available for new applicants until 28 June 2017, the purchase rate reverts to 19.84% p.a. at the end of the promotional period.
While this is a higher revert rate than the Westpac Low Rate card, the 55 Day Platinum product has a reduced annual fee of $0 for the first year for all customers and will waive the $90 annual fee in subsequent years if the spend requirements are met.
As a platinum product, the card also comes with a platinum concierge service and complimentary insurance. Similar to the Low Rate card, you can also take advantage of a 0% for 12 months balance transfer offer if you apply by 28 June 2017.
How do these 0% purchase credit cards compare?
While there is no one best 0% purchase credit card, comparing the features, rates and fees of the individual cards can help you decide which one is the right fit for you.
For example, if you’re making a large number of purchases and will need more time to pay it off, the Velocity Flyer credit card and its offer of 0% interest for 12 months could give you the breathing room you need. This card can also come in handy if you want to earn Velocity Points as you spend.
If you intend to use the card after the promotional offer ends or if you don’t think you can repay your balance within 6 to 12 months, you could opt for the Westpac Low Rate with the lower revert rate of 13.49% p.a.
Meanwhile, if you want to save on interest but still want to take advantage of extra features such as complimentary insurance and a concierge service, the Westpac 55 Day Platinum card could be better suited to your needs. Plus, it has the $0 annual fee for the first year, which could help cut back your card costs.
These interest-free purchase credit cards are just some of the competitive offers available on finder.com.au and on the market. However, as the right card will vary from person to person, it’s best to compare your options before you apply. You can get started with our comparison of 0% purchase credit cards.