0% Balance Transfers & 0% Purchases Credit Card

Enjoy the best of both worlds with 0% balance transfers and 0% purchase credit cards. Repay your credit card debt with no interest for an extended period and enjoy 0% on purchases for up to 15 months, allowing you to spend on what you need now and repay later with flexibility.

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 make paying off an existing credit card debt easier while allowing interest-free purchases to be made on the same card. 0% percent interest is an offer for an introductory period.

This guide was designed to help you make the most comprehensive comparison possible to find you some of the lowest interest rates on the market and to help you to avoid common mistakes made by credit card customers.

Let's assume that the offer periods for the 0% balance transfer and the 0% purchases are both six months and that they run concurrently. If that is the case, then this is a great product because they work hand in hand to give you one of the most beneficial offers available for people making purchases on a balance transfer credit card.

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

Rates last updated December 11th, 2016
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Balance transfer rate (p.a.) Purchase rate (p.a.) Annual fee Interest Saved
NAB Low Rate Credit Card
The NAB Low Rate Card offers 0% p.a. on purchases and balance transfers for 15 months. This card also comes with a low annual fee.
0% p.a. for 15 months with a one off 3% balance transfer fee 0% p.a. for 15 months (reverts to 13.99% p.a.) $59 p.a. Go to site More info
NAB Low Fee Card
Enjoy a low introductory rate of 0% p.a. on balance transfers and purchases for 15 months.
0% p.a. for 15 months with a one off 3% balance transfer fee 0% p.a. for 15 months (reverts to 19.74% p.a.) $30 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 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
St.George Vertigo Visa
Introductory offer of 0% p.a. for 18 months on balance transfers and 1% p.a. for 12 months on purchases, plus a low annual fee.
0% p.a. for 18 months 1% p.a. for 12 months (reverts to 13.24% p.a.) $55 p.a. Go to site More info
St.George Vertigo Platinum
A platinum card with a balance transfer offer of 0% p.a. for 18 months and an introductory purchase offer of 1% p.a. for 12 months with an annual fee waiver for the first year.
0% p.a. for 18 months 1% p.a. for 12 months (reverts to 12.74% p.a.) $99 p.a. Go to site More info
Bank of Melbourne Vertigo Visa Credit Card
Enjoy a low annual fee combined with 0% p.a. balance transfer offer for 18 months and 1% p.a. for up to 12 months on purchases.
0% p.a. for 18 months 1% p.a. for 12 months (reverts to 13.24% p.a.) $55 p.a. Go to site More info
Virgin Australia Velocity Flyer Card - 0% Interest Offer
Earn Velocity Rewards and access an interest-free offer on purchases and balance transfers.
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
Bank of Melbourne Vertigo Platinum
A platinum card with a low balance transfer offer of 0% p.a. interest for 18 months and 1% p.a. for 12 months on purchases combined with complimentary insurance covers.
0% p.a. for 18 months 1% p.a. for 12 months (reverts to 12.74% p.a.) $99 p.a. Go to site More info
BankSA Vertigo Visa
A low interest rate card with a low annual fee, a long term balance transfer offer of 0% p.a. for 18 months and an introductory offer of 1% p.a. for 12 months on purchases.
0% p.a. for 18 months 1% p.a. for 12 months (reverts to 13.24% p.a.) $55 p.a. Go to site More info
BankSA Vertigo Platinum
Enjoy 0% balance transfer rate for 18 months and 1% purchase rate for 12 months if you apply and are approved by 4 January 2017.
0% p.a. for 18 months 1% p.a. for 12 months (reverts to 12.74% p.a.) $99 p.a. Go to site More info
NAB Premium Card
Benefit from Premium credit card advantages including travel insurance, higher credit limits and VIP Lost Card Cover. 0% p.a. for 15 months on purchases and balance transfers.
0% p.a. for 15 months with a one off 3% balance transfer fee 0% p.a. for 15 months (reverts to 19.74% p.a.) $90 p.a. Go to site More info
Citi Clear Platinum Card
A platinum credit card with a low interest rate on balance transfers and purchases.
0% p.a. for 9 months 0% p.a. for 9 months (reverts to 14.99% p.a.) $99 p.a. Go to site More info

The finder.com.au best* 0% balance transfer and purchase credit cards

Compare the features of the balance transfer and purchase cards below.

Credit CardPurchase rate (p.a.)Balance transfer rate (p.a.)Additional Features
NAB Low Fee Card0% for 15 months0% p.a. for 15 months with a one off 3% balance transfer feeEnjoy a low annual fee of $30.
NAB Velocity Rewards Premium Card0% for 15 months0% p.a. for 15 months with a one off 3% balance transfer feeReceive 25,000 bonus Velocity Points.
NAB Qantas Rewards Premium Card0% for 15 months0% p.a. for 15 months with a one-off 3%% balance transfer feeGet 25,000 bonus Qantas Points.
NAB Premium Card0% for 15 months0% p.a. for 15 months with a one off 3% balance transfer feeEnjoy premium card benefits with complimentary travel insurance, platinum concierge and VIP Lost Card Cover.

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.

  • Making purchases on a balance transfer trap. 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 when the balance isn't paid in full each month, so you'll have to pay interest on the recent purchase. For every purchase made on a standard balance transfer credit card, the purchase rate of interest accrues on each purchase from the day of the transaction until the purchase is fully repaid including the interest component. This isn’t an ideal situation for people who are making an effort to get out of their debt.
  • The trap is solved with 0% purchases. 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 better 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 pretty 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 do's 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 20%. 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

If I make a purchase during the 0% balance transfer and 0% purchases period, what rate of credit card interest am I charged?

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.

If I don’t pay my balance in full and on time, what happens?

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.

What does the interest rate revert to at the end of the 0% balance transfer and 0% purchases period ?

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 rate. To find out what rate your balance transfer will revert to, view the review of the specific credit card on CreditCardFinder.com.au.

Do you still have to make any credit card repayments during the 0% balance transfer and 0% purchases period?

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.

Is there such as thing as a credit card that has a 0% balance transfer and 0% purchase rate and also a $0 annual fee?

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.

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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 Essential Credit Card
American Express Essential Credit Card

Interest rate

14.99

Annual fee

0
ME Bank frank Credit Card
ME Bank frank Credit Card

Interest rate

11.99

Annual fee

0
HSBC Platinum Credit Card
HSBC Platinum Credit Card

Interest rate

19.99

Annual fee

149

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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 December 11th, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
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
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
11.99% p.a. $0 p.a. Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info
NAB Low Rate Credit Card
The NAB Low Rate Card offers 0% p.a. on purchases and balance transfers for 15 months. This card also comes with a low annual fee.
0% p.a. for 15 months (reverts to 13.99% p.a.) 0% p.a. for 15 months with a one off 3% balance transfer fee $59 p.a. Go to site More info
HSBC Platinum Qantas Credit Card
Receive 60,000 bonus Qantas Points on eligible spend within 3 months. Enjoy access to premium benefits and complimentary insurance.
19.99% p.a. $199 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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