Shop now and save on interest charges with a credit card that offers 0% p.a. on purchases for up to 14 months.
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 December 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.
Compare 0% purchase credit card offers
What is a 0% purchase credit card?
A 0% purchase rate credit card gives you a way to buy what you want (or need) without being charged interest during the introductory period. With this type of offer, you’ll typically get an interest-free period that lasts between 3 and 14 months from when you’re approved for the card.
What’s the catch with 0% purchase rate credit cards?
At the end of the introductory period, the 0% rate reverts to that credit card’s standard interest rate for purchases. This means you’ll be charged interest if you haven’t paid off everything that you bought during the 0% p.a. period. Any new purchases you make will also attract interest charges at the standard rate for your card.
While potential interest charges and debt are the biggest risks to watch out for with a 0% purchase rate offer, many of these cards also charge an annual fee that can add to your upfront costs.
The best 0% purchase credit cards*: finder.com.au
Compare the features of these competitive interest-free credit card offers:
- NAB Low Rate Platinum Card. Enjoy 0% p.a. interest for 15 months on purchases, plus platinum perks.
- St.George Amplify. Enjoy a 0% p.a. interest rate for 14 months on purchases and earn rewards points per $1 spent.
How does a 0% p.a. purchase credit card work and when is it useful?
0% purchase credit cards can help you save on account costs when you need to make a large purchase, or when you know you’ll be spending a lot of money in a short amount of time. For example, if you’re travelling overseas, shopping for Christmas presents or planning a wedding, a 0% p.a. credit card gives you a way to get what you need when you need it and pay it off over time with zero interest.
However, if you’re still carrying a balance from your purchases after the introductory period ends, the card’s standard interest rate will apply to the debt. Paying off a 0% purchase credit card before the end of this period means you will get the greatest value from the interest-free offer.
How much money can I save with a 0% interest credit card?
Suppose you want to book an overseas flight that costs $2,000 and plan to pay $200 onto your credit card each month. If you paid for your flights on a card with a 17% p.a. interest rate, it would take you around 11 months to pay off the balance and cost you about $172 in interest charges.
In comparison, if you had a credit card that offered 0% p.a. on purchases for 12 months, you could pay off your flights in 10 months without any interest charges.
How can I find the best 0% purchase rate credit card?
Credit cards with 0% purchase rate offers are designed to suit different goals, so there isn’t one “best” option. But you can find a 0% purchase credit card that works for you by looking at the following features:
- The 0% purchase rate period. This introductory period typically ranges from 3 to 14 months. When you're comparing credit cards, consider how much you're going to spend and whether or not you’ll be able to pay it off before the standard purchase rate applies. If you can't pay it off before the end of the introductory 0% interest period, you might want to apply for a card with a longer introductory period or be prepared to pay some interest when the offer ends.
- Annual fee. Ideally, the value you get from your credit card should outweigh this cost. As well as considering the potential savings you’ll get during the introductory 0% p.a. interest period, make sure you weigh up the value of other, ongoing perks on the card – such as complimentary insurance or rewards. Alternatively, you could compare credit cards that have no annual fee.
- Standard purchase interest rate. This varies between cards but is typically between 13% p.a. and 22% p.a. If you don't think you can repay the entire balance before the 0% purchase rate period ends, think about whether the ongoing purchase rate will be affordable. You could also look for a card that offers a low ongoing purchase rate or consider transferring the debt to a card with a 0% balance transfer offer so you can continue paying off your debt without interest over a promotional period.
- Foreign transaction fees. While the introductory 0% p.a. rate will apply to purchases you make overseas, you may still be charged a fee worth approximately 2-3% (or more) for transactions made overseas or online with an international business. You can compare credit cards which do not charge currency conversion fees in our detailed guide.
- 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 want more than just the 0% offer, comparing these features can help you choose a credit card that works for you.
5 common mistakes to avoid with 0% purchase credit cards
If you want to get the most out of a credit card's 0% p.a. introductory period, watch out for these traps:
- Ignoring the standard purchase rate. At the end of the promotional period, the 0% purchase rate will revert to the standard variable purchase rate. This rate usually sits between 13% p.a. and 22% p.a. Check the standard purchase interest rate before applying for a credit card so you're aware of the potential costs if you don't pay off your purchases during the introductory period.
- Forgetting to make repayments. Even with an introductory 0% p.a. interest rate on your credit card, you still need to pay at least the minimum amount listed on each statement. This is usually 2% or 3% of the total balance or a dollar amount, such as $20 to $30. If you don't pay the minimum by the due date on your statement, you could be charged a late payment fee.
- Only making the minimum repayment. If you only pay the minimum amount each month, you won't repay the entire balance before the 0% interest offer finishes. Any balance remaining after that will be charged interest at the card's standard rate, making it harder to pay off the debt. To avoid this situation, aim to pay off all your purchases before the introductory period ends. 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% credit card interest rate offer only applies to eligible purchases. So if you use your card for balance transfers, cash advances, government payments or other cash-equivalent transactions, the card's standard interest rate will apply to these charges (unless a separate promotional offer applies).
- Not taking advantage of the entire offer period. The 0% purchase rate offer is available as soon as your credit card is approved, not from when you make your first purchase. So if you get a credit card with 0% p.a. on purchases for six months but you don't make a purchase or any repayments for the first month, you'll only have five more months of the interest-free period. If you have a big purchase in mind, make it as soon as possible and start making repayments immediately to get the maximum value while the offer lasts.
Credit cards that offer an introductory 0% p.a. on purchases can be a great way to save money on purchases, but only for a limited time. When comparing these cards, pay attention to the length of the promotional period, what interest rate applies at the end of the introductory offer and any other card features and fees so that you can find one that suits your needs.
FAQs about 0% purchase credit card offers
If you want to know more about 0% purchase credit cards, here you'll find answers to some of the most common questions. You can also get in touch using the comment box below to leave your own question about 0% purchase credit cards.