0% Balance Transfers & 0% Purchases Credit Card

Have an existing credit card debt but need to make purchases? Repay your credit card debt with 0% interest and make purchases interest-free. Compare offers here.

These offers are about as exciting as credit card deals get, providing credit cardholders with interest relief on their debt. The purpose of a 0% balance transfer and 0% purchases credit card is to pay off an existing credit card debt while being able to make interest-free purchases.

ANZ Platinum Credit Card - Exclusive Offer

Exclusive ANZ Platinum Credit Card Offer

Exclusive to this site, pay no annual fee in the first year and take advantage of low introductory rates on purchases and balance transfers.

  • $0 p.a. annual fee for the first year ($87 p.a. thereafter) annual fee
  • 0% p.a. for 3 months (reverts to 19.74% p.a.) on purchases
  • 0% p.a. for 12 months on balance transfers
  • Cash Advance Rate of 21.49% p.a.
  • Up to 55 days interest free
  • Minimum Income Requirement of $35,000 p.a.

Compare Credit Cards with both 0% Balance transfers & 0% Purchases

Rates last updated May 27th, 2017
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Balance transfer rate (p.a.) Purchase rate (p.a.) Annual fee Interest Saved
ANZ Platinum Credit Card - Exclusive Offer
Receive platinum perks including complimentary travel and purchase insurance.
0% p.a. for 12 months 0% p.a. for 3 months (reverts to 19.74% p.a.) $0 p.a. annual fee for the first year ($87 p.a. thereafter) Go to site More info
Virgin Australia Velocity Flyer Card - 0% Interest Offer
Earn 2 Velocity Points on top of the standard earn rate per $1 spent within the first 3 months, plus a $129 Virgin Australia Gift Voucher each year.
0% p.a. for 6 months 0% p.a. for 12 months (reverts to 20.74% p.a.) $129 p.a. Go to site More info
Westpac Low Rate Card
Take advantage of up to 55 interest-free days and a low standard purchase rate.
0% p.a. for 12 months 0% p.a. for 6 months (reverts to 13.49% p.a.) $59 p.a. Go to site More info
Westpac 55 Day Platinum Credit Card
Receive complimentary insurances, access to platinum concierge service and up to 55 days interest-free.
0% p.a. for 12 months 0% p.a. for 6 months (reverts to 19.84% p.a.) $0 p.a. annual fee for the first year ($90 p.a. thereafter) Go to site More info

How to use a 0% balance transfer to manage post-Christmas debt

 

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

To understand what this all means, we need to look at what can happen when the 0% offer is only on a balance transfer.

Purchases typically attract interest with a balance transfer offer.

Balance transfers are a great offer — their popularity is a testament to this. But one trap some people can fall into on a regular balance transfer card is by using it to make purchases. The reason purchases cause issues is because there are no interest-free days on credit cards with a balance transfer, so you'll have to pay interest on the recent purchase. This isn’t an ideal situation for people who are making an effort to get out of their debt.

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

The combination of a 0% balance transfer and 0% purchases card solves this consumer pitfall by eliminating the possibility for consumers to be stung with interest on purchases during the introductory offer period. For cardholders on a normal balance transfer offer, the latest credit card reforms require banks to allocate payments to higher-interest debts first. It works this way: the debts on your credit card will be paid off in a certain order of the highest interest rates first. Customers who thought they were putting a massive dent towards their credit card debt are paying off their new purchases first and are being less effective at paying off debt than they intended.

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How to compare 0% balance transfer and 0% purchases credit cards

When comparing 0% balance transfer and 0% purchases credit cards, make sure to identify the type of card that is most suited to you.

Here, we'll examine the main features of these cards, what you should be looking for, and why you must understand how certain factors can work against each other.

Types of 0% balance transfer & 0% purchases credit cards

No two 0% balance transfer and 0% purchases credit card offers are the same. They're available across a variety of cards, so annual fees, revert interest rates and the class of the card can help set your alternatives apart.

  • Rewards cards. A rare beast to carry this type of offer. Generally only trimmed-down rewards cards will have the full 0% on balance transfers and 0% on purchases. So you may expect to get complimentary insurance and some other helpful, low-key privileges. But that is generally about it.
  • Reduced annual fee for first year offer. Even a cursory glance at the above comparison table will show 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 for customers who wish to keep their upfront costs low while they knuckle down to pay off their debt.
  • Platinum cards. Platinum credit cards are a class, or category, of credit cards that are targeted at higher income customers than classic credit cards and often require a sharp credit record. In return, customers get higher credit limits as well as more valuable extras, including complimentary overseas travel insurance.
  • Classic cards. Classic credit cards are a good option for people on a lower income than is required for platinum credit cards. They are usually a low-frills option and therefore tend to have lower annual fees than platinum credit cards.
  • Low rate cards. Low rate credit cards are a pretty strong offer in the 0% balance transfer and 0% purchases scene, as purchases on the cards revert to what is usually a relatively low purchase interest rate.

Start Comparing 0% Balance Transfers & 0% Purchases Credit Cards

How to use 0% balance transfer & 0% purchase rate credit cards

Your 0% balance transfer and 0% purchases credit card will be a huge boon during its initial offer period, but only if you make effective use of it. Here are the main dos and don'ts of using this particular credit card to keep in mind before you apply:

The dos of 0% balance transfer and 0% purchases cards

  • Make your balance transfer quickly. Though the introductory period may only last a number of months, your opportunity to make the transfer may be limited to a shorter period (such as within the first thirty days), otherwise the promotional rate will be lost. 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.
  • Understand how to make the transfer. As mentioned already, the easiest way is during your application. Otherwise, you apply online, over the phone or via paper forms in the mail once your card arrives.
  • Pay off your balance in good time. If your deal is for six months, that's not an awful lot of time. Make sure you are budgeting like mad to ensure the balance on your 0% balance transfer and 0% purchases credit card is paid off in full before the offer period expires. You will be charged the regular rate of interest on any unpaid balance, which could be as high as 24%. However, if you can’t get there by the cut-off date, it may be worth considering balance transferring again to another balance transfer credit card.

The don'ts

  • Don't think this can become a habit. Making one 0% balance transfer after another to avoid paying your debts will be noted in your credit history. Your credit rating may drop due to your regular credit applications, and the assessors of your credit file may well read into your habits and reject applications from you.
  • Don't make any cash transactions on your 0% balance transfer and 0% purchases card. Cash transactions aren’t often included in 0% promotional offers, and when they are, they still carry the very expensive cash advance fees.
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Things to watch out for when using this type of credit card offer

  • Revert interest rates. Cardholders need to be aware of the spike in interest they can expect at the end of the promotional offer.  The balance transfer amount will revert to either the higher cash advance interest rate or the purchase rate. If the balance won't be paid in full by that time, you may want to consider swapping cards or at least consider how you will budget. Rates on new purchases will revert to the purchase interest rate at the end of the introductory period.
  • Cash transactions. This is never a good idea on any credit card, and often unlikely to be covered by any 0% deal. Even if they are, there will still be a cash advance fee for every cash advance transaction. 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 accrue interest as well at the cash advance rate.
  • Different length offer periods. The length of these offers can vary, so it's worth deciding from the outset what your plans are when the period ends and whether a longer balance transfer and purchase period will suit you even if the offer interest rate is higher than some of the shorter, 0% offers.
  • Annual fee. Check this is not too much higher than average. A little higher than normal may be okay for the benefits you're gaining from your 0% balance transfer and 0% purchases offer.
  • Minimum monthly repayments. Although you want to pay your credit card balance in full each month when possible, your monthly minimum payment can be a good indicator of how high your current outstanding balance is. By being prepared for your minimum monthly repayment you can also help avoid late fees, which can be around $30-$40 for some cards. Calculating your own minimum monthly balance repayment is as simple as looking at what your minimum percentage repayment is and how much your outstanding balance is (interest included). You can also use an online credit card repayment calculator to tell you what your minimum monthly repayments will be by looking at your current balance and credit card interest rate.

Calculating your minimum monthly credit card repayment

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Frequently Asked Questions

During the 0% purchases offer period, purchases won’t incur interest.

However, after the 0% offer period ends, you will be charged the purchase rate of interest.

This will be charged from the date the transaction takes place if you’re carrying a balance from month to month as interest free days are waived for unpaid balances.

For the 0% offer period, 0% interest is applied for the outstanding balance.

After the offer period, if you don’t pay your balance in full by the statement period, you will not receive any interest free days on purchases you make with the card.

Purchases usually revert to the normal purchase interest rate on the credit card. Balance transfers however either revert to the purchase rate or the cash advance rate. To find out what rate your balance transfer will revert to, view the review of the specific credit card on finder.com.au.

Yes, the minimum monthly repayment must be paid each month to stop your card from going into default – if you have a balance transfer promotion charging 1% interest and the minimum monthly repayment is 3% – you’ll be paying 2% off your balance each statement period.

Yes, there were such offers at the time of writing. However, offers change from time to time, so the best way to stay up to date with the latest offers is to check our balance transfer comparison page.

Yes, there were such offers at the time of writing. However, offers change from time to time, so the best way to stay up to date with the latest offers from providers is to check our balance transfer comparison page.

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Read more on this topic

American Express Velocity Platinum Card
American Express Velocity Platinum Card

Interest rate

20.74

Annual fee

375
ANZ Platinum Credit Card - Exclusive Offer
ANZ Platinum Credit Card - Exclusive Offer

Interest rate

19.74

Annual fee

87
St.George Vertigo Platinum
St.George Vertigo Platinum

Interest rate

12.74

Annual fee

99

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9 Responses to 0% Balance Transfers & 0% Purchases Credit Card

  1. Default Gravatar
    Bill | March 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).

    • Staff
      Jonathan | March 14, 2016

      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

  2. Default Gravatar
    Kristie | August 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?

    • Staff
      Jonathan | September 1, 2015

      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

    • Staff
      Jonathan | September 1, 2015

      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

  3. Default Gravatar
    kevin | September 7, 2014

    who has 0% interest for the longest time

    • Staff
      Shirley | September 8, 2014

      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

  4. Default Gravatar
    Vivien | March 7, 2013

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

    • Staff
      Jacob | March 8, 2013

      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 May 27th, 2017
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Exclusive Offer
Earn 2 Velocity Points on top of the standard earn rate per $1 spent within the first 3 months, plus a $129 Virgin Australia Gift Voucher each year.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
HSBC Platinum Credit Card
Earn 1 Reward Point per $1 spent and receive an annual fee refund with minimum spend.
19.99% p.a. 0% p.a. for 22 months with 2% balance transfer fee $99 p.a. Go to site More info
ANZ Platinum Credit Card - Exclusive Offer
Receive a low introductory offer of 0% p.a. on purchases for 3 months and 0% p.a. on balance transfers for 12 months. Also, enjoy an annual fee waiver in the first year.
0% p.a. for 3 months (reverts to 19.74% p.a.) 0% p.a. for 12 months $0 p.a. annual fee for the first year ($87 p.a. thereafter) Go to site More info
NAB Premium Card
An introductory rate of 0% p.a. for 24 months on balance transfers combined with premium benefits such as travel insurance covers.
19.74% p.a. 0% p.a. for 24 months with 3% balance transfer fee $90 p.a. Go to site More info

* 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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