0% balance transfer and purchase credit cards

Have an existing credit card debt but need to make purchases? Compare 0% balance transfer and 0% purchase rate offers here.

The purpose of a 0% balance transfer and 0% purchase rate credit card is to enable you to pay off an existing credit card debt while still being able to make interest-free purchases. When used responsibly, these credit card deals can provide cardholders with relief from interest on their debt.

Exclusive to finder.com.au - Citi Credit Card Offer

Citi Platinum Credit Card - Exclusive Offer

0% p.a. interest for 13 months on purchases and balance transfers
Discounted annual fee of $49 for the first year
Exclusive to finder.com.au

Offer ends 31 January 2019

Eligibility criteria, terms and conditions, fees and charges apply

Exclusive to finder.com.au - Citi Credit Card Offer

Save with 0% p.a. interest on purchases and balance transfers (with no balance transfer fee) for up to 13 months and a discounted annual fee for the first year.

  • $49 p.a. annual fee for the first year ($149 p.a. thereafter).
  • 20.99% p.a. on purchases
  • 0% p.a. for 13 months with 0% BT fee on balance transfers
  • Cash advance rate of 21.74% p.a.
  • Up to 55 days interest free
  • Minimum income requirement of $35,000 p.a.
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Compare credit cards with both a 0% balance transfer rate and a 0% purchase rate

Rates last updated December 16th, 2018
$
% p.a.

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Name Product Balance transfer rate (p.a.) Purchase rate (p.a.) Annual fee Amount Saved Product Description
Citi Platinum Credit Card - Exclusive Offer
0% p.a. for 13 months
0% p.a. for 13 months (reverts to 20.99% p.a.)
$49 p.a. annual fee for the first year ($149 p.a. thereafter)
finder Exclusive:
Save with 0% interest on purchases and balance transfers for 13 months (with no BT fee). Plus, a discounted $49 annual fee for the first year.
Virgin Australia Velocity Flyer Card - Exclusive Offer
0% p.a. for 6 months
0% p.a. for 14 months (reverts to 20.74% p.a.)
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
finder Exclusive: Save on credit card costs with half the annual fee for the first year and a 0% p.a. interest rate on purchases for 14 months.
NAB Low Rate Platinum Card
0% p.a. for 6 months with 2% balance transfer fee
0% p.a. for 9 months (reverts to 13.99% p.a.)
$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.
Qantas Premier Everyday
0% p.a. for 9 months
0% p.a. for 9 months (reverts to 19.99% p.a.)
$49 p.a.
Take advantage of 20,000 bonus Qantas Points, a 0% p.a. purchase and balance transfer offers. Plus, complimentary overseas travel insurance.
NAB Low Rate Credit Card
0% p.a. for 6 months with 2% balance transfer fee
0% p.a. for 6 months (reverts to 13.99% p.a.)
$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.
Virgin Australia Velocity Flyer Card - 0% Interest Offer
0% p.a. for 6 months
0% p.a. for 14 months (reverts to 20.74% p.a.)
$129 p.a.
Earn Velocity Rewards and access an interest-free offer on purchases and balance transfers.

Compare up to 4 providers

How do 0% balance transfer and 0% purchase rate credit cards work?

Let's start by looking at what happens when a 0% interest rate offer applies to a balance transfer only.

Purchases typically attract interest with a balance transfer offer.

Balance transfer offers can be very tempting and can help you take control of your debt. However, people often fall into the trap of using the balance transfer credit card to make purchases. Cards that only include a balance transfer offer do not include any interest-free days on purchases. If you use the card for this purpose, you can quickly increase your debt rather than reducing it.

Here's why: When you make a payment with your card, the debt on your credit card that attracts the highest interest rate will be paid off first. Because there's a purchase rate but no balance transfer rate, you'll end up paying off any new purchases before your debt is reduced. You might think that your repayments are making a massive dent in your historical debt, when in fact you are only paying off your new purchases.

0% purchase rate and 0% balance transfer cards let you repay your debt and make interest-free purchases.

The combination of a 0% balance transfer and a 0% purchase rate card solves this consumer pitfall. It eliminates the possibility of you getting hit with interest on purchases, as long as the purchases are made during the introductory offer period.

How to compare 0% balance transfer and 0% purchase rate credit cards

When comparing cards, it's important to select the type of card that is most suited to your circumstances. Let's take a look at the main features of these cards and examine what you should be looking for and how certain factors can work against each other.

Types of 0% balance transfer and 0% purchase rate credit cards

No two 0% balance transfer and 0% purchase rate credit card offers are the same. They're available across a variety of cards, so the different annual fees, revert interest rates and card classes can help you with your decision-making.

  • Reward cards. It's rare for reward cards to offer this kind of deal. Generally, only trimmed-down reward cards will offer the full 0% on balance transfers and 0% on purchases. They might come with complimentary insurance and other helpful but low-key privileges.
  • Reduced annual fee for the first year. Even a cursory glance at the above comparison table shows that many of the 0% balance transfer and 0% purchase rate offers have a reduced annual fee for the first year. This can be very helpful if you want to keep your upfront costs low while you knuckle down to paying off your debt.
  • Platinum cards. Platinum credit cards are targeted at higher income customers and they often require a shining credit history. In return, you get higher credit limits as well as more valuable extras, which often include complimentary overseas travel insurance.
  • Classic cards. Classic credit cards are a good choice for people on a lower income. They are usually a no-frills option with lower annual fees than platinum cards.
  • Low rate cards. These are a popular offering in the 0% balance transfer and 0% purchase rate scene, as purchases on these cards usually revert to a relatively low interest rate after the introductory offer period is over.

Start comparing 0% balance transfers and 0% purchase rate credit cards

How to use these credit cards wisely

Your 0% balance transfer and 0% purchase rate credit card will be a huge boon during its initial offer period, but only if you make effective use of it. Keep in mind the main dos and don'ts when using this type of card:

The dos

  • Transfer your balance quickly. Though the introductory promotional period may last a number of months, your opportunity to actually make a balance transfer at the promotional rate may be limited to a shorter period of time, such as within the first 30 days. The longer you leave it, the less time you'll have to enjoy avoiding interest. Take advantage of the offer by transferring your balance during your card application.
  • Know how to make the transfer. If you don't transfer your balance during your application, you can apply online, over the phone or via hard copy, once your card arrives.
  • Pay off your balance in good time. If the introductory offer lasts for six months, then make sure you are budgeting like mad to ensure that the balance on your 0% balance transfer and 0% purchase rate credit card is paid off in full before the offer period expires. You will be charged the revert interest rate on any unpaid balance, which could be higher than 20%. However, if you find that you won't make it by the cut-off date, it may be worth considering transferring the balance again to another similar card from a different bank.

The don'ts

  • Don't make this a habit. Making one 0% interest balance transfer after another to avoid paying interest will be noted in your credit history. Your credit rating may drop due to regular credit applications and the assessors of your credit file may well read into your habits and reject your applications for any more credit.
  • Don't make any cash transactions. Cash transactions aren’t often included in 0% interest promotional offers, and when they are, they still carry very expensive cash advance fees.

Things to watch out for when considering this type of offer

  • Revert interest rates. Be aware of the spike in interest that you can expect at the end of the promotional offer period. The remaining balance transfer amount will be charged either the higher cash advance interest rate or the purchase rate. If you know the balance won't be paid in full by that time, consider swapping cards or think about how you will budget for the extra costs. Interest on new purchases will also revert to the purchase interest rate at the end of the introductory period.
  • Cash transactions. This is never a good idea with any credit card and it's usually never included in a 0% offer. Even if cash transactions are included, there will still be a cash advance fee for every transaction of this type. This is an extra charge of around 2-4% of the transaction amount. If the cash advance fee is unpaid by the next statement due date, it will also accrue interest at the cash advance rate.
  • Different offer period lengths. The length of these offers can vary, so it's worth deciding from the outset what your plans are for when the promotional period ends. Think about whether a longer promotional period would suit you, even if the interest rate offer is higher than some of the shorter, 0% offers.
  • Annual fee. Check that this is not way higher than average. A little higher than normal may be worth it for the benefits you receive from the offer.
  • Minimum monthly repayments. Pay your credit card balance in full each month whenever possible. If you can't do that, then make sure you're at least paying the minimum monthly repayment to help you avoid late fees. Calculating your own minimum monthly balance repayment is as simple as looking at what the minimum repayment percentage is (usually 2-3%) and calculating this against your outstanding balance, interest included. You can also use an online credit card repayment calculator to work out what your minimum monthly repayments will be.

Calculating your minimum monthly credit card repayment

Frequently asked questions

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Credit Card Offers

Important Information*
Citi Clear Platinum Credit Card

Interest rate

12.99

Annual fee

0*

*$99 p.a. after first year

ANZ Low Rate

Interest rate

12.49

Annual fee

58
Suncorp Clear Options Platinum Credit...

Interest rate

20.74

Annual fee

49*

*$129 p.a. after first year

NAB Low Fee Platinum Card

Interest rate

19.74

Annual fee

90

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13 Responses

  1. Default Gravatar
    LynneNovember 29, 2018

    I want to get a 0% balance transfer with a low rate and preferably no annual fee. I am not interested in Citi bank. Can you please help me. I am having trouble finding one on line

    • finder Customer Care
      NikkiNovember 29, 2018Staff

      Hi Lynne,

      Thanks for getting in touch! To help you find a credit card with both 0% annual fee and a low rate, feel free to use the table on the page. First you’d need to enter the amount you’re transferring and your current interest rate then press calcuate. The table will automatically compute amount saved. If you want low rates, click the purchase rate 2 or 3 times to adjust the table from lowest to highest or vise versa and it will line up the cards for the lowest interest rates and so on. As a friendly reminder, review the eligibility criteria of the card before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the card. Hope this helps!

      Best,
      Nikki

  2. Default Gravatar
    SyedAugust 21, 2017

    Hi Good morning
    I currently am a holder of AZN business credit card and seek to do a balance transfer to another bank credit card, as there’s a lot of information has been given, I am unable to decide which bank should I chose? My main concern to transfer from ANZ is their monthly minimum repayments which to me is little over. The limit on the card is A$5000.00. Could you please help?

    • Default Gravatar
      MariaAugust 21, 2017

      Hi Syed,

      Thank you for reaching out to us.

      As finder is a financial comparison website providing general information, we are not permitted to provide our users with personalised financial advice or make product recommendations.

      However, we do help guide you through the process of comparing options.

      This page shows you credit cards that have offers on 0% Balance Transfers as well as 0% Purchase Rates and the table shows you the features of the different lenders that you may choose from and click “Go to site” to be directed to their page.

      You may also find other options on our page that have 0% Balance Transfer Credit Cards. They do not necessarily all have 0% Purchase Rates but have other terms that may suit your preference such as a longer period.

      Useful information that may guide you is also found on the link provided.

      I hope this helps.

      Best,
      Maria

  3. Default Gravatar
    BillMarch 13, 2016

    On a transfer of 0% for 9 months and purchases for 9 months with a revert to 19-20%, with a capacity to clear balance in offered time, am I obliged to make purchases other than to balance repayments to arrive at zero balance at the end of 9 months and at that time or beforehand take a no frills credit card with a competitor with a low interest rate? In other words can I use their offer to have 9 months interest free (incurring only the cost of the card).

    • finder Customer Care
      JonathanMarch 14, 2016Staff

      Hi Bill, thanks for your inquiry!

      That is correct. With a promotional offer of 0% for 9 months on purchases and balance transfers no interest will be charged. If you have a balance transfer amount and you have made purchases, any repayments to your credit card account will go to your balance transfer amount first. This is because the revert rate is higher than the purchase revert rate.

      Cheers,

      Jonathan

  4. Default Gravatar
    KristieAugust 31, 2015

    did you have an offer of 0% p.a for 12 months on new purchases on the Westpac 55 Day card on the 20 june 2015?

    • finder Customer Care
      JonathanSeptember 1, 2015Staff

      Hi Kristie, thanks for your inquiry!

      The Westpac 55 Day credit card did not have a purchase rate promotion on that specific date.

      Cheers,

      Jonathan

    • finder Customer Care
      JonathanSeptember 1, 2015Staff

      Hi Kristie, thanks for your inquiry!

      The Westpac 55 Day credit card did not have a purchase rate promotion on that specific date.

      Cheers,

      Jonathan

  5. Default Gravatar
    kevinSeptember 7, 2014

    who has 0% interest for the longest time

    • finder Customer Care
      ShirleySeptember 8, 2014Staff

      Hi Kevin,

      Thanks for your question.

      At the time of writing, the longest 0% offer in our comparison is for 13 months. All three cards are currently offered by Bankwest.

      Cheers,
      Shirley

  6. Default Gravatar
    VivienMarch 7, 2013

    Can I withdraw a cash amount on existing card then apply for new card with 0% balance transfer

    • finder Customer Care
      JacobMarch 8, 2013Staff

      Hi Vivian. Yes, this is possible. The only thing you will want to look out for it that you need to get approved on your new credit card, otherwise you’re going to be stuck with a huge credit card bill. A few things that may result in a declined application: too many enquiries (applications for credit) in a short space of time, defaults on previous credit products and applying for a card that has a high annual income requirement. For more information on why credit card applications get declined, check our article on the topic.

Credit Cards Comparison

Rates last updated December 16th, 2018
Name Product Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee Product Description
Citi Clear Platinum Credit Card
12.99% p.a.
0% p.a. for 14 months
$0 p.a. annual fee for the first year ($99 p.a. thereafter)
Offers a 0% p.a. for 14 months balance transfer and $0 first year annual fee. Plus, insurance covers and Citibank Dining Program perks.
Suncorp Clear Options Platinum Credit Card - Online Offer
20.74% p.a.
0% p.a. for 18 months
$49 p.a. annual fee for the first year ($129 p.a. thereafter)
Save with a 0% balance transfer offer and earn up to 60,000 Bonus Rewards Points. Plus, a discounted first year annual fee when you apply online.
ANZ Low Rate
12.49% p.a.
0% p.a. for 15 months
$58 p.a.
Save with a 0% p.a. introductory rate on balance transfers for 15 months with no BT fee. Plus a low 12.49% p.a. interest rate on purchases.
NAB Low Fee Platinum Card
19.74% p.a.
0% p.a. for 24 months with 2% balance transfer fee
$90 p.a.
Offers 7 complimentary insurance covers, a 0% p.a. for 24 month balance transfer and access to a 24/7 concierge service for a $90 p.a. annual fee.

Compare up to 4 providers

* The credit card offers compared on this page are chosen from a range of credit cards finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

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