Enjoy the freedom of buying now and paying later. Compare credit cards with 0% on purchases for up to 12 months here.
Do you want to save on interest costs and avoid credit card debt? A credit card with a 0% purchase rate lets you make purchases on the card with zero interest payable for a promotional period. The length of the introductory offer will vary from card to card, but you can expect the 0% promotional period to last for between 3 to 18 months.
There are many competitive offers on the market, but the best credit card for interest-free purchases will depend on your needs. This guide explains the benefits of 0% purchase credit cards, how they work and how you can compare the different offers in the market. It also answers the most popular questions about 0% purchase credit card deals and shows you how to get the most out of your next credit card.
Compare 0% Purchase Credit Cards and get up to 12 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% for 3 months on purchases and a long term balance transfer offer.|
|Virgin Australia Velocity Flyer Card - 0% Interest Offer||Get 0% for 12 months on purchases with Velocity points earnings per $1 spent.|
|Enjoy 0% on purchases for 6 months and a low ongoing purchase rate of 13.24% p.a. thereafter. The card has a $55 p.a. annual fee and offers up to 55 interest-free days on purchases.|
What is a 0% purchase credit card?
A credit card with 0% on purchases allows you to make purchases and pay zero interest them while an interest-free introductory offer is in place. Depending on the card, the zero interest offer is usually in place for six to nine months but can last for as long as 15 to 18 months. Once the promotional period ends though, the standard purchase rate will apply and any remaining balances on your card will start to collect interest. If you struggle to repay your balance in full each month or have some large-ticket purchases to buy, a 0% purchase credit card can help you repay your debt faster and keep your interest costs low.
How is this different to a regular credit card?
While a standard credit card typically has an interest rate between 13% and 20% p.a. applied to purchases, credit cards with interest-free purchases provide zero interest on all eligible purchases made during the promotional period.
How to find the best* 0% purchase credit card for your needs
If you want to find the best* 0% purchase credit card deals and promotional offers, here are some of the features you'll need to compare:
- Length of the 0% purchase promotional period. As the 0% purchase period can range between 3 to 15 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 promotion 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
|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.|
Compare 0% purchase credit cards with frequent flyer and rewards programs
Compare 0% purchase credit cards with balance transfer offers for up to 18 months
4 common mistakes to avoid with 0% purchase credit cards
- 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 paying 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 when the 0% offer finishes. If you pay 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.
The most popular questions about 0% purchase 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 generally will 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.