Interest-Free Credit Card Offers

Who else wants a credit card that doesn’t charge interest on purchases or balance transfers for a given time period?

Credit cards give you convenient means to make purchases and pay for them later, but this can often come at the cost of interest. If you, like many others, wish to make purchases or transfer balances without the burden of interest, an interest-free credit card could be for you. Most of these cards don’t offer interest-free for the life of the card, so you’ll need to compare your options to make sure you’re choosing the right card for you.

Virgin Money Credit Card Offer

Virgin Australia Velocity Flyer Card - 0% Interest Offer

0% p.a. for 14 months
on purchases

Offer ends 30 June 2018

Eligibility criteria, terms and conditions, fees and charges apply

Virgin Money Credit Card Offer

Enjoy a 0% introductory rate on purchases and balance transfers, plus, earn Velocity Points on your everyday purchases.

  • $129 p.a. annual fee.
  • 20.74% p.a. on purchases
  • Cash advance rate of 20.99% p.a.
  • Up to 44 days interest free
  • Minimum income requirement of $35,000 p.a.
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Promoted

Credit Cards with Interest-free Offer

Rates last updated May 26th, 2018
Name Product Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee Product Description
NAB Low Rate Platinum Card
0% p.a. for 9 months (reverts to 13.99% p.a.)
0% p.a. for 6 months with 2% balance transfer fee
$100 p.a.
Enjoy a 0% p.a. interest rate offer on purchases for 9 months and the protection of 7 complimentary insurances including overseas travel insurance.
Virgin Australia Velocity Flyer Card - 0% Interest Offer
0% p.a. for 14 months (reverts to 20.74% p.a.)
0% p.a. for 6 months
$129 p.a.
Earn Velocity Rewards and access an interest-free offer on purchases and balance transfers.
NAB Low Rate Credit Card
0% p.a. for 6 months (reverts to 13.99% p.a.)
0% p.a. for 6 months with 2% balance transfer fee
$59 p.a.
Receive an introductory 0% p.a. interest rate for 6 months on purchases, Visa Entertainment offers and a competitive $59 ongoing annual fee.

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girl went shopping using her credit cardWhat is an interest-free credit card?

An interest-free credit card, as the name implies, doesn’t charge any interest. However, these interest-free periods usually expire at some point or the other, and not all transactions fall under the promotion.

There are also different types of interest-free cards available. Some cards may offer a promotional interest-free period on balance transfers, while another may provide interest-free days on purchases. Some credit cards offer both, but you may be unable to take advantage of both offers at the same time. It is also important to note that interest-free periods never apply on cash advances.

What are the benefits of an interest-free credit card?

You can look forward to multiple benefits when using an interest-free credit card. Depending on the card you get, here’s what you can expect:

  • Promotional interest-free purchase rates. You can find credit cards that offer promotional 0% p.a. purchase rates that are in place from 3 months to 15 months. You don’t have to pay any interest towards purchases until the end of this period, after which any outstanding balance starts attracting the card’s purchase rate. The sooner you make a purchase, the longer you get to repay it without paying interest.
  • Standard interest-free days. Most Australian credit cards give cardholders the ability to make use of interest-free days on purchases, which normally vary in between 44 and 55 days. To make use of these interest-free days, you have to pay your account’s closing balance in full before each due date.
  • Promotional interest rates on balance transfers. If you have an existing credit card that charges high interest, you can save money in the form of interest by transferring its balance to a card that comes with an introductory 0% p.a. balance transfer rate. Such promotional balance transfer rates can stay in place from 6 to 24 months.
  • Global acceptance. Your interest-free credit card is a conventional credit card, and it would, in all likelihood, come with a Visa or Mastercard affiliation. Therefore, you can look forward to using your card worldwide, at EFTPOs terminals and ATMs alike.

Drawbacks of an interest-free credit card

If you’re considering using an interest-free credit card remember that things can go wrong if you don’t use your card in the right way, so take some time to go through the following:

  • Cannot use offers concurrently. If your new credit card comes with a 0% p.a. interest rate offer on balance transfers as well as purchases, find out if you can use both the offers at the same time. Chances are you can’t.
  • Rollover balances. If you plan to use the regular interest-free days on purchases that your card offers, it is pertinent that you pay your account’s outstanding balance in full every month. If you don’t, purchases start attracting interest from the time you make them.
  • Excluded transactions. Many cards offer promotional interest-free periods on balance transfers, but not as many do on purchases. Cash advances, which include withdrawing money from ATMs, buying foreign currency and spending at casinos, never come with interest-free days.
  • Balance transfers. If you opt for a balance transfer, you can’t use your card’s standard interest-free days on purchases until you pay the transferred balance in full. With promotional balance transfer offers, find out how much interest you’ll have to start paying once the promotional period expires. In some cases, outstanding balances from balances transfer start attracting a card’s cash advance rate, which can be noticeably higher than its purchase rate.

How can I compare interest-free credit cards to find the best one for me?

When comparing interest-free credit cards, pay attention to the following features:

  • Number of interest-free days. Promotional interest-free periods on purchases can vary in between 3 and 15 months, and with balance transfers you can look forward to interest-free periods of up to 24 months. When it comes to standard interest-free days on purchases, know that some low rate cards don’t offer any.
  • Fees. Some such cards don’t charge any ongoing annual fees, and with some others you may have to pay more than $100 p.a. If you plan to use your card overseas, find out how much you’ll have to pay as overseas transaction fees. Late fees credit cards charge can also vary.
  • Interest rate. Once the promotional period comes to a close, you’ll have to start paying interest, so pay due attention to the card’s standard purchase rate. This becomes particularly important if you plan to keep balances rolling in your account from one month to the next.
  • Extras. You can find interest-free credit cards that come linked to rewards programs, and you can also find features like complimentary insurance covers and access to concierge services. These extras come at a cost, which you end up paying as an annual fee or a high interest rate.

An interest-free credit card can help you save money, no doubt, but since you have multiple options from which to choose, make sure you compare them well before arriving at a decision.

See our full comparison table for more low interest rate credit cards.

Frequently asked questions

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Important Information*
Westpac Low Rate - Online Offer
Westpac Low Rate - Online Offer

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Annual fee

59
HSBC Platinum Credit Card
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NAB Low Fee Card
NAB Low Fee Card

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Annual fee

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Citi Platinum Credit Card - 100k Bonus Points
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4 Responses

  1. Default Gravatar
    April 2, 2013

    If I buy something on interest free and pay it off in the interest free period will I have to pay anything besides the product that I purchased? And then may I cancel?

    • Staff
      JacobApril 3, 2013Staff

      Hi Yasmin. If you pay off the cost of the transaction before the interest free period finishes, you won’t be charged any interest on that purchase. You will still have to pay the minimum monthly repayment; however, this will go towards paying off the purchase and not the interest charges, so you’re slowly reducing the size of the balance prior to paying it off in full before the end of the interest free promotional period. Jacob.

  2. Default Gravatar
    ebjinDecember 13, 2012

    Can i do my new card balance transfer to my wife’s old credit card?. Are there any differences in credit score checking for interest free and balance transfer credit card?

    • Staff
      JacobDecember 14, 2012Staff

      Hi Ebjin. Thanks for your question. If you’re approved for a credit card that has a balance transfer promotion, then generally you will be approved for a balance transfer also. For information on transferring balances from a partners credit card, please check this article. Cheers.

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