Enjoy interest-free periods of up to 14 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 terms of 0% introductory offers vary, you'll usually be able to get between 3 and 14 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% credit card purchase rate offers to help you get the most out of your next credit card.
0% p.a. for 9 months
Eligibility criteria, terms and conditions, fees and charges apply
0% Purchase Credit Card Offer
With a new NAB Low Rate Platinum Card, get 0% interest for the first 9 months on purchases. Plus, a range of platinum benefits.
- 0% p.a. interest on purchases for 9 months from account opening. Reverts to the standard purchase rate (currently 13.99% p.a.)
- Receive seven complimentary insurance covers when you make an eligible purchase. Plus, access to the 24/7 NAB Concierge Service.
- Up to 55 days interest-free on purchases (after the 9 month introductory period) when you pay your balance in full by the statement due date.
- 4.99% p.a. interest on balance transfers for 6 months. Reverts to the cash advance rate (currently 21.74% p.a.)
- NAB may vary or end this offer at any time.
Compare 0% Purchase Credit Cards and get up to 14 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.
- Virgin Australia Velocity Flyer Card - 0% Interest Offer. Get 0% p.a. for 14 months on purchases and earn Velocity Points per $1 spent.
- NAB Low Rate Platinum Card. Enjoy 0% p.a. interest on purchases for 9 months on purchases, plus platinum perks.
What is a 0% purchase credit card?
A credit card that offers 0% on purchases gives you a way to shop interest-free during the introductory period. When this period ends, the card's standard purchase rate will apply to any balance you're carrying from those purchases. If you have some big-ticket items you want to buy, 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 from 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. A credit card's introductory 0% interest rate period can range between 3 and 12 months or more, so 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. Ideally, these features should outweigh the cost of the annual fee. Alternatively, you could compare credit cards that offer no annual fee.
- 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 get 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||Gives you a way to make purchases and pay 0% interest on them for a specified introductory 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||Make interest-free purchases during the introductory period and earn frequent flyer points for every dollar spent on your card for the life of the card.|
|0% purchases with balance transfer offers||This type of 0% p.a. credit card offer 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 on purchase during 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 an introductory 0% interest rate on purchases give you a set amount of time to make purchases without paying any interest when you first get the card. 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.
Common mistakes to avoid with 0% purchase credit cards
Want to get the most out of a credit card's 0% interest period? Here are four things to watch out for:
- 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%). 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. 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 usually 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. Or, 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% 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 out of the offer length.
Credit cards that offer introductory 0% p.a. on purchases give you a way to save money on planned purchases and big-ticket items that you need to buy – but only for a limited time. 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.