0% Purchase Rate Credit Cards

Want to make purchases now and pay no interest for up to 15 months? Compare 0% purchase rate credit cards to find the right card for you.

Credit cards can be a great way to pay for products and services when you don’t have the money. Unfortunately, the money you repay usually accrues interest which can add up in the long run. Some cards help alleviate this financial burden by providing their cardholders with interest-free days on purchases if they pay their account’s closing balance in full each month. Other providers allow new cardholders to take advantage of 0% purchase interest rates through introductory offers that are usually in place for the first few months.

Use this guide to compare your options and determine whether a 0% purchase rate credit card is the right choice 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 2 September 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

Comparison of 0% Purchase Rate Credit Cards

Rates last updated July 20th, 2018
Name Product Purchase rate (p.a.) Interest Free Period Annual fee Balance transfer rate (p.a.) Product Description
Virgin Australia Velocity Flyer Card - 0% Interest Offer
0% p.a. for 14 months (reverts to 20.74% p.a.)
Up to 44 days on purchases
$129 p.a.
0% p.a. for 6 months
Buy now and pay later with 0% p.a. interest on purchases for 14 months. Plus, 0% p.a. on balance transfers for up to 6 months.
NAB Low Rate Platinum Card
0% p.a. for 9 months (reverts to 13.99% p.a.)
Up to 55 days on purchases
$100 p.a.
0% p.a. for 6 months with 2% balance transfer fee
Enjoy a 0% p.a. interest rate offer on purchases for 9 months and the protection of 7 complimentary insurances including overseas travel insurance.
NAB Low Rate Credit Card
0% p.a. for 6 months (reverts to 13.99% p.a.)
Up to 55 days on purchases
$59 p.a.
0% p.a. for 6 months with 2% balance transfer fee
Receive an introductory 0% p.a. interest rate for 6 months on purchases, Visa Entertainment offers and a competitive $59 ongoing annual fee.

Compare up to 4 providers

The finder.com.au list of best* 0% purchase rate credit cards

Compare the features of the balance transfer cards below.

Credit Card
Feature
Virgin Australia Velocity Flyer Card - 0% Interest OfferGet 0% for 14 months on purchases with Velocity points earnings per $1 spent.
NAB Low Rate Platinum CardAn platinum card with 0% for 9 months on purchases and a range of complimentary insurance covers.

How do 0% purchase credit cards work?

A 0% purchase rate credit card is one that charges 0% p.a. interest on purchases made within a given time period that begins from the card’s activation. This time period typically varies from three to 12 months, but since there is no hard and fast rule, and because these offers come and go from time to time, referring to ongoing promotions at the time you wish to get a new card is always a good idea.

Such cards are ideal for individuals who wish to make large purchases or several small purchases, which they cannot pay off in full during the next payment cycle. This type of card gives you the ability to buy now and pay later without the burden of interest, provided you pay the entire amount before the promotional period ends. At the end of the promotional period, any outstanding balance starts attracting the card’s standard purchase rate.

How to successfully use 0% purchase credit cards

The money you use for purchases through a 0% p.a. purchase rate credit card essentially works as an interest-free loan, and to make the most of it you should follow certain simple measures:

  • Make purchases quickly. The interest-free period on purchases begins from the moment you activate your card, and stays in effect for a provided time period. As a result, the sooner you make a purchase or more, the longer you get to repay the money without paying any interest.
  • Periodical payments. An introductory 0% p.a. purchase rate does not imply that you don’t have to make any repayments during the promotional period. You would still receive a statement each month, and you would be required to make at least the minimum required payment each month. If you miss making even a single payment, you can expect the promotional rate to end immediately.
  • Repay the amount within the offer period. You should ideally try to pay more than the minimum monthly payments, because once the promotional period ends any outstanding balance starts attracting interest.
  • Avoid cash advances. Cash advances in any form, whether you withdraw money from an ATM or use your card at a gambling table, start attracting interest from day one. So you'll want to avoid them if you don’t want to pay high interest.
  • Don’t exceed your credit limit. If this happens, your credit card provider can withdraw the promotional purchase rate.
  • Think twice about balance transfers. Some such cards offer promotional balance transfer rates as well. If you do plan to use such a card for balance transfers, know that both offers run independently of each other, and there’s a good chance that the purchase rate offer may be forfeited if you have a balance on your account.

How to compare 0% purchase credit cards

When you’re comparing cards with 0% p.a. purchase rate offers its important to pay due attention to the following aspects:

  • Length of interest-free period. The longer you get to repay the money you spend on purchases without having to pay any interest, the better.
  • Standard rate. This is the interest outstanding balances from purchases attract after the promotional period comes to a close. Bear in mind that the purchase rate can vary significantly from one card to the next.
  • Annual fees. The presence and cost of the annual fee will vary from card to card. If there is an annual fee in place, make sure that it doesn’t override the savings of you’d make through the interest-free offer.
  • Additional features. Some cards offer extra features, so you’ll want to compare these to make sure that the additional perks are of value to you. For example, you may be interested to find out if your card offers interest-free days on purchases once the initial interest-free period expires. On the other hand, some cards may offer a rewards program or may come with complimentary travel or purchase insurance cover. Compare your options and make sure that the additional features suit what you want and need from your card.

What are the pros and cons of using a 0% purchase credit card?

Pros

  • Save money. This, without a doubt, is the biggest benefit of getting a 0% p.a. purchase rate credit card. As long as you abide by the terms and conditions you don’t have to pay any interest during the promotional period.
  • Get what you want. If you’ve desired something for a while but can’t pay for it in one go and don’t want to pay any interest, using such a card gives you the ability to buy just about anything you want without paying interest.

Cons

  • Requires budgeting. You can’t expect a credit card debt to pay itself off, and if you don’t budget your repayments in advance, you could end up with an outstanding balance after the promotional period ends. If this happens you’ll have to start paying interest, which, over time can add up to a tidy sum.
  • Invalidate the offer. Things you do can work in invalidating the offer, so it’s important that you review the offer’s terms and conditions at the onset. You can invalidate the offer by making a late payment, missing a payment, or exceeding the card’s credit limit.

Questions asked about 0% purchase rate offers

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6 Responses

  1. Default Gravatar
    MarjieAugust 3, 2016

    Can I apply for a free interest card as a pensioner? What are my chances of getting one for $1000?

    • finder Customer Care
      MayAugust 3, 2016Staff

      Hi Marjie,

      Thanks for your inquiry.

      Yes, pensioners can apply for a credit card with 0% interest on purchases so long you can provide the necessary proof of income (pension) and documentation. You can find more information on our guide for credit cards for pensioners on this page. Also, your credit limit, for instance, $1,000, will be determined by the bank based on their assessment of your financial circumstance.

      Cheers,
      May

  2. Default Gravatar
    anneMay 15, 2014

    i’m looking for a cc with 0% interest for 12 months minimum with NO international trans fees can you please advise me.

    Thank you

  3. Default Gravatar
    scottApril 28, 2013

    is there any fee’s, cost or penalties for cancelling a credit card once you have payed back the amount owed.
    for example; I get a credit card make a purchase and pay it off within the interest free period and then cancelled the card. will i get stung with any fee’s?

    • finder Customer Care
      JacobApril 28, 2013Staff

      Hi Scott. Thanks for your question. Provided that you’ve paid the card off in full, there are no penalties for closing the account. Jacob.

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