Enjoy the freedom of buying now and paying later with a credit card that offers you 0% interest on purchases.
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.
| Credit Card | Feature | Annual fee |
|---|---|---|
| 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. | $0 in the first year ($87 p.a. thereafter) |
| Virgin Australia Velocity Flyer Card - 0% Interest Offer | Get 0% p.a. for 12 months on purchases and earn Velocity Points per $1 spent. | $129 p.a. |
| Enjoy 0% p.a. interest on purchases and balance transfers for 13 months on purchases and balance transfers, plus platinum perks. | $99 p.a. |
What is a 0% purchase credit card?
A credit card with 0% on purchases allows you to make purchases and pay zero interest on them during a promotional introductory period. When this period ends, the standard purchase rate will be charged for any remaining balance on your card. If you have some big-ticket purchases to make, a 0% purchase credit card can temporarily keep your interest costs low, which could help you pay off the balance faster.
While a standard credit card typically has an interest rate between 11% and 22% p.a. for purchases, credit cards offering interest-free purchases provide 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 13 or more months, it's important to ensure that the promotional period is sufficient 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 the 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 20%. If you don't think you can repay the entire balance before the promotional 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 cash back. |
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 20%). 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, 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. The 0% 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.
Popular questions about 0% purchase credit card offers from our users
Does the 0% purchase offer apply for foreign currency transactions when shopping overseas or online?
As long as it's an eligible purchase, overseas purchases will not be charged any interest during the promotional period. However, you may be charged foreign currency conversion fees. You can compare credit cards which do not charge currency conversion fees in our detailed guide.
How many purchases will receive the 0% interest rate?
All eligible purchases made once the card is activated until the end of the promotional period will not collect any interest. However, any remaining balances that haven't been repaid by the end of the promotional offer will start to collect interest.
Please note that ineligible transactions (such as cash advances or balance transfers) will accrue the standard relevant interest.
When does the 0% purchase promotion start?
The 0% promotion will begin either when your credit card application is approved or upon credit card activation, depending on the bank. It will generally take 3-5 business days for your card to be mailed to your address after application approval. So if you want to take advantage of the full promotional period, you'll need to remember that the offer period begins when you open the card rather than when you make your first purchase.
What types of transactions are eligible to receive 0% interest?
Your transactions need to qualify as an "eligible purchase" to be covered under the 0% purchase promotion. Eligible purchases are generally defined as everyday purchases which involve the exchange of a good or service for a payment. Transactions that do not qualify as eligible purchases generally include business expenses, gambling transactions, balance transfers and cash advances. If you are unsure about whether your transaction will qualify, contact your bank directly for clarification.
What is the interest rate after the 0% promotional period?
After your 0% purchase promotion has finished, the balance outstanding on purchases made will be charged interest at the regular purchase rate, usually known as the "revert rate". You can consider moving your outstanding purchase amount to a 0% balance transfer credit card, which will give you more time to repay your debt interest free.
Do interest-free days apply during a 0% purchase promotion?
For the length of the 0% purchase promotion period, standard interest-free days offers do not apply. If your card comes with an interest-free days feature (say, for up to 55 days), then you'll be able to take advantage of this when the promotional period ends and if you pay your entire balance in full by the end of the statement period.
Do I have to make any repayments with a 0% purchase promotion?
Yes. You must make the minimum monthly repayment of the credit card even with a 0% purchase promotion available. This repayment is generally around 2-3% of the full outstanding balance, or a set dollar amount if the outstanding balance is below a certain level (often $25). Please note that paying the minimum monthly repayment isn't usually enough to repay the entire balance before the promotional period ends, though. So if you want to avoid collecting the standard interest rate, pay as much as you can each month to pay it in full before the standard interest rate applies.
Can I pay my bills or government payments with no interest cards?
Banks generally exclude bill and government payments from eligible purchases so they will not be considered an interest-free purchase. If you would like to inquire further, contact your bank's customer service team directly.
Can you please advise which card/s are currently offering a 0% balance transfer, and have the best points system
Hi Eve,
Thank you for contacting finder. We are a comparison website and general information service, we’re more than happy to offer general advice.
You may refer to this page for options that may suit your needs. You may review and compare the offers available on the table. Once you have selected one, you may proceed by clicking the green “Go to Site” button.
I hope this helps.
Cheers,
Danielle
Hello.
Could you please tell me if sports club/golf membership fees are eligible for the 0% purchase fee CC purchases ?
Hi David,
Thank you for your inquiry.
Basically, the eligible purchases are everyday purchases which involve the exchange of a good or service for a payment, which excludes business expenses, gambling transactions, balance transfers and cash advances. So it’s best to contact your bank or credit issuer directly to confirm if they would consider your payments for a club membership as eligible purchases.
Cheers,
May
Hi,
Regarding 0% purchase credit card, will the annual credit card fee receive 0% interest free?
Regards
Hi Joe,
Thank you for your inquiry.
I’m afraid no. The annual fee is basically fixed for the entire lifespan of the card and it’s not considered as a purchase, so the 0% interest does not apply to it.
Cheers,
May
Hi,
In this age of cloud and automation, which bank card in the best deal and has the CSV format that is compatible to link up in accounting software.
Warm regards
Hi Barry,
Thanks for your question.
Most Australian Banks with online banking facility can be linked to common accounting software. If you already have an accounting software, you can normally check which bank are supported when you try to ‘add a bank account.’ If you’ll let me know what accounting software you are using, I may be able to give you the exact procedure to do it.
Cheers,
Anndy
Hi,
I would like to purchase some furniture and utilise the 0% interest on purchases currently on offer. I can then put the money otherwise spent on my mortgage offset account and save on interest, for example.
If I want to maximise the limit on a new 0% purchase credit card, would it help if I lowered the limit on my current card first?
Thanks.
Hi Ken,
Thanks for your inquiry.
If you’re interested in applying for a credit card that offers 0% interest on purchases, you may do so. But please make sure to read the eligibility criteria and requirements before applying. Once you’ve found a card you’re eligible for and you wish to apply for, you can click “Go to Site” green button to head over to the credit card company’s website.
In the meantime, keep in mind though that your approved credit limit will be determined by the card issuer. Depending on their assessment on your ability to repay, income and credit score, they may approve you for a lower or higher credit limit.
I hope this has helped.
Cheers,
May
Hi May, thanks for your response.
What I’m trying to ask is, all else equal, will lowering the credit limit on my existing card immediately prior to applying for a new card (the 0% interest on purchases card) help me get a higher credit limit on the new card?
I want to effectively transfer as much of my credit limit to the new 0% on purchases card without cancelling my current card.
Thanking you
Hi Ken,
Thanks for getting back.
Unfortunately, transferring of credit limit between credit cards is not possible. As I mentioned in my previous reply, only the credit card issuer has the ability to give you a higher or lower credit limit – that is depending on certain criteria you met and not because you have a lower limit of your existing credit card. Please feel free to read our article on how you can increase your credit limit.
I hope this has helped.
Cheers,
May
I am confused by the 0% interest free period and the 44 days interest free.
Sorry for probably stupid question.
Hi Steph,
Thanks for your question!
The 0% interest free period refers to a promotional period. So if you had a 0% on purchases for 6 months, your purchases wouldn’t collect interest for the first 6 months after that card is approved. After the promotional period, the standard interest rate will kick in.
The 44 interest-free days, on the other hand, is a permanent feature of the card that can only be taken advantage of if you pay your balance in full by the end of the statement period. If you’re able to do this, then your future purchases won’t collect interest for up to 44 days.
I hope this has helped and don’t hesitate to respond if you have any more questions.
Cheers,
Sally
Are there any cards available for personal use for a self-employed person? Do not want to use the card for business.
Hi Christine,
Thanks for your question.
If you’re self-employed and want to apply for a credit card for personal use, you’ll just need to ensure that you meet the eligibility requirements (including annual income, credit history etc) and provide evidence of your self-employment (such as your accountant’s details).
I hope this has helped.
Cheers,
Sally
What if any restrictions are there to stop me from transferring my CC balance to another interest free card before the interest free period expires?
Hi Woody, thanks for your inquiry!
There are no restrictions for transferring your balance to another interest-free credit card before your current interest-free promotion expires. Generally it is recommended not to apply for more than 1 credit card within a 3 month time frame, otherwise you may like to read more about key considerations when completing a balance transfer.
Cheers,
Jonathan
Hi, I have a question about 0% purchase credit card. Let’s my credit card allows 0% on purchases for 12 months – Now I understand that if I make a $1000 purchase then I have 12 months to pay it off without paying any interest. But what happens if I use it as my daily transaction card ? So if I were to make additional purchases after the first $1000 transaction, how is the interest calculated for the second/third/subsequent transactions ? Are those subsequent transactions interest free for 12 months from their respective purchase dates or does it use the very first transaction date ? Would I end up paying any interest if I were to setup a direct debit on minimum monthly payments on multiple purchases over a span of several months ? Sorry for asking so many questions, I just want to get the concept right. Everyone talks about making one purchase and paying it over X months before the grace period ends, but no one explains how it works when multiple transactions/purchases are made.
Hi PD,
Thank you for your inquiries.
If you use your card for additional purchases or for daily transactions, you won’t pay any interest during the term of the introductory offer. The 0% rate applies on purchases made within 12 months your card got approved.
Let’s say the offer is valid from April to September, and you applied and got approved this month, any purchases made from the date you got approved up to the twelfth month won’t incur any interest. As long as you meet the minimum monthly payment and can pay the balance in full before the twelfth month, you won’t be charged the interest rate, otherwise you’ll incur the standard purchase rate for any outstanding balance.
To get a clear explanation of how introductory offer works, please refer to this page.
I hope this helps.
Cheers,
Sally
Hi Jonathan,
I would like to use the credit card to pay my plane ticket from travel agency? Is this classified as purchases or cash advance? I have a existing platinum nab credit card, can I still apply for new Nab credit card, to avail the 12 months 0% interest free? Thanks!
Hi Myla, thanks for your inquiry!
Flights/ plane tickets are classified as an eligible purchase. If you are an existing NAB credit card holder unfortunately the purchase offer of 0% for 12 months is unavailable. You may like to refer to other 0% purchase credit cards on this page.
Cheers,
Jonathan