Enjoy interest-free periods of up to 13 months with a credit card that offers you 0% p.a. on purchases.
A 0% purchase rate credit card can help you save on your shopping by charging zero interest for a promotional period. While the length of 0% introductory offers vary, you'll usually be able to get between 3 to 13 months interest-free depending on the credit card you choose.
Use this guide to learn about the benefits of 0% purchase credit cards, how they work and how to compare the different 0% interest credit card offers on the market. We also answer the most common questions about 0% purchase credit card deals to help you get the most out of your next credit card.
0% p.a. for 13 months on balance transfers
with a one-time 2% balance transfer fee
Eligibility criteria, terms and conditions, fees and charges apply
Bankwest Credit Card Offer
With the Bankwest Breeze Mastercard, you can enjoy a low annual fee combined with a 0% p.a. introductory rate on balance transfers and purchases.
- $79 p.a. annual fee.
- 12.99% p.a. on purchases
- 0.00% p.a. for 13 months with 2% BT fee on balance transfers
- Cash advance rate of 21.99% p.a.
- Up to 55 days interest free
Compare 0% Purchase Credit Cards and get up to 13 months interest-free
The best* interest-free credit cards - finder.com.au
Compare the features of some of the most competitive 0% purchase credit card offers below.
- ANZ Platinum Credit Card - Exclusive Offer. An exclusive offer with 0% p.a. for 3 months on purchases and a long-term balance transfer offer.
- Virgin Australia Velocity Flyer Card - 0% Interest Offer. Get 0% p.a. for 12 months on purchases and earn Velocity Points per $1 spent.
- Bankwest Breeze Platinum Mastercard. Enjoy 0% p.a. interest on purchases and balance transfers for 13 months on purchases and balance transfers, plus platinum perks.
What is a 0% purchase credit card?
A credit card with 0% on purchases allows you to make purchases interest-free for a promotional, introductory period. When this period ends, the standard interest rate for purchases will be charged for any remaining balance on your card. If you have some big-ticket purchases to make, a 0% interest credit card can help you save on interest charges during the introductory period. This could also help you pay off the balance faster.
How is a 0% purchase credit card different to a regular credit card?
While a standard credit card typically has an interest rate between 13% and 22% p.a. for purchases, credit cards offering interest-free purchases charge zero interest on all eligible purchases made during the promotional period.
How can I find the best* 0% purchase credit card?
There is no one best* 0% interest credit card on the market because each offer is designed to suit different spending habits and budgets. But you can find a 0% purchase credit card offer that works for you by comparing the following features:
- Length of the 0% purchase promotional period. As the 0% purchase period can range between 3 to 12 months or more, it's important to choose a card with a promotional period that works for you. Consider how much you're going to spend, divide it by the number of months in the promotional period and calculate whether you can repay that much each month to clear the balance before the revert rate applies. If not, you might want to apply for a card with a longer promotional period or be prepared to collect some interest when the offer ends.
- Annual fee. Most 0% purchase credit cards charge an annual fee. To determine whether or not the card is worth the cost, consider how much you'll save with the 0% interest offer and the other perks on offer to see whether the benefits outweigh this cost.
- Revert purchase interest rate. If you're unable to pay your balance in full by the end of the introductory period, your purchases will begin attracting the standard purchase rate. Depending on the card, this will typically be between 13% and 22%. If you don't think you can repay the entire balance before the promotional period ends, look for a card with a lower ongoing purchase rate. Otherwise, you could enjoy another interest-free period by transferring your debt to a card with a 0% balance transfer offer.
- Extra benefits. Does the card come with complimentary travel insurance? Do you want to earn rewards points on your purchases? Will your purchases be covered by purchase protection and extended warranty? Can you access a 24/7 concierge service? If you will be using the card for more than just the 0% offer, comparing these features can help set the cards apart.
Types of 0% purchase credit cards and extra features
While each of these cards offers 0% on purchases, there are several types of interest free purchase credit cards. You can compare the additional benefits and features to determine which type of 0% purchase credit card is right for you.
|0% purchase offer type||Benefits|
|Standard 0% purchase offer||Includes the 0% promotional purchase rate for a specified promotional period, which will revert back to the standard purchase rate once the offer has ended. Extra benefits such as interest-free days, travel benefits and complimentary insurances may also be available.|
|0% purchases with frequent flyer benefits||Earn frequent flyer points for every dollar spent on your card for the life of the card and also take advantage of an interest-free purchase promotional period.|
|0% purchases with balance transfer offers||This type of card allows you to transfer and repay your existing credit card debt interest-free whilst also making purchases with zero interest.|
|0% purchases with rewards benefits||Pay no interest on your purchases and earn rewards points for every dollar you spend. Unlike a frequent flyer card, these are connected to your credit card's rewards program and can be redeemed for flights, merchandise and cashback.|
What's the difference between interest-free days and 0% interest credit card offers?
Most credit cards offer you up to a certain number of interest-free days each statement period, for example, up to 55 days. To take advantage of interest-free days, you usually need to pay off your full balance by the due date on each statement. As long as you meet these conditions, you can enjoy interest-free days on your card.
In comparison, credit cards that offer a promotional 0% interest on purchases give you a temporary period when you can make purchases without paying any interest. You only have to make minimum payments during the promotional period. But a standard interest rate will apply to any balance remaining at the end of that period.
4 common mistakes to avoid with 0% purchase credit cards
Want to get the most out of a 0% interest period? Here are four things to avoid:
- Ignoring the revert rate. At the end of the promotional period, the 0% interest rate will revert to the standard purchase rate (which usually sits between 13% and 22%). Consider the revert interest rate before applying for the card so you understand how your debt will grow if you fail to repay your balance before the standard interest rate kicks in.
- Only making the minimum repayment. You'll be required to make minimum repayments, usually 2% or 3% of the total balance, for each statement period. However, if you only match the minimum amount each month, you'll be unable to repay your entire balance before the 0% offer finishes. If you make more than the minimum repayment, you'll have a much better chance of repaying your balance before the revert rate applies and you start paying a higher interest rate. If you're unable to repay your balance before the 0% purchase offer ends, a balance transfer might be the next step.
- Ineligible transactions. This type of 0% interest offer only applies to eligible purchases. If you use your card for balance transfers, cash advances, government payments or other cash-equivalent transactions, they'll usually be charged at the standard rate unless a separate promotional offer applies.
- Not taking advantage of the entire offer period. The 0% offer is available as soon as your card is approved, not from when you make your first purchase. So if your card offers a 0% offer for six months but you don't make a purchase or any repayments for the first month, you'll only have five more months to make repayments without incurring interest. If you have a big purchase in mind, make it as soon as possible and start making repayments immediately to get maximum value out of the offer length.
The introductory 0% interest periods offered in these cards can be a great way to save money on planned purchases and big-ticket items that you need to buy. When you're comparing these cards, pay attention to how long the promotional period lasts, what interest rate applies at the end of the promotional period and other features and fees so that you can find one that suits your needs.