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A 0% purchase rate credit card allows you to buy what you need now without being charged interest for a while. With this type of offer, you'll typically get an interest-free period that lasts between 3 and 15 months from when you're approved.
Offer ends 31 January 2021
Eligibility criteria, terms and conditions, fees and charges apply
Enjoy 0% p.a. interest on purchases for 15 months and a $150 Woolworths gift card when you meet the spend requirement.
After the introductory 0% purchase rate is up, you'll be charged the standard purchase rate on any remaining balance. Be sure to include that rate in your comparison.
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. In these situations, 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 without 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 in full before the end of this period means you will get the greatest value.
Say you want to book an overseas flight that costs $2,000 and plan to put $200 a month towards paying it off. If you paid for your flights on a credit 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 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.
Credit cards with 0% purchase rate offers are designed to suit different types of spenders, so there isn’t one “best” option. Instead, find the right card for you by considering and comparing these features:
If you want to get the most out of a credit card's 0 percent introductory period, watch out for these traps:
At the end of the introductory period, the 0% interest rate reverts to the credit card's standard rate for purchases. When that happens, you'll be charged interest on any purchases you haven't paid off during the 0% p.a. period. Any new purchases you make will also attract interest charges at the standard rate for your card.
This means potential interest charges and debt are the biggest risks to watch out for with a 0% purchase rate offer. But you should also pay attention to credit card annual fees, which can add to your upfront costs.
Credit cards that charge an introductory 0% p.a. rate on purchases can be a great way to save money on big-ticket items or upcoming expenses, 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.
If you want to know more about 0% purchase credit cards, here you'll find answers to some of the most common questions.
A 0% purchase rate offer lasts for a limited amount of time from when you first get the new credit card. During this introductory period, you won’t be charged interest on purchases as long as you pay the minimum amount listed on each statement.
In comparison, a credit card with interest-free days gives you a window of time in each statement period when you can make purchases without being charged interest. Usually, you need to pay the total amount owed on each statement to be eligible for interest-free days.
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. Note that this type of interest-free period usually only applies if you pay your entire balance in full by the due date on each statement.
Once you've activated the credit card, all eligible purchases that you make will be 0% interest until the end of the promotional period. However, any purchases that haven't been repaid by the end of the introductory period will collect interest after that.
Credit card annual fees are usually not considered eligible purchases. So if you get a promotional 0% purchase rate credit card that also has an annual fee, you'll probably be charged interest on that part of your balance. You can contact the individual credit card providers to find out if this fee would be eligible for a particular interest-free promotion.
With this type of credit card, the promotional 0% interest rate is available for a fixed time period. For example, let's say you get a card offering 0 interest for 12 months on purchases from when you activate the card.
If you make a purchase on the day you get (and activate) your card, you will have 12 months to pay it off before any interest is charged. If you make another purchase after 3 months, you will have 9 months remaining for the 0% interest period, while if you make a purchase 11 months after getting the card, you'll only have 1 month interest-free for that purchase. After that, your 12-month 0% interest offer will end and the standard purchase rate will apply to new purchases.
After your 0% purchase promotion has finished, the outstanding balance will be charged interest at the card's regular purchase rate, usually known as the "revert rate". You can check this interest rate before you apply, or by contacting your credit card provider. If you find yourself struggling to pay back what you owe, you can consider moving your outstanding debt to a 0% balance transfer credit card, which will give you more time to repay it interest-free.
The cards on this page usually charge 0% interest on purchases for 3 to 15 months. You can sort the credit cards by "purchase rate" in the comparison table above to see which cards offer the longest interest-free period.
While you could be able to use your card to pay for utilities and government payments, these transactions are sometimes listed as ineligible for the 0% introductory interest rate offer. Check the offer details or contact the credit card company directly to confirm what types of transactions are eligible.
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