Want to buy now and pay next year? A 15-month interest-free credit card allows you to do just that
Finding a credit card offering 15 months interest-free on purchases is still a rare feat in Australia. After all, if you use it correctly, the bank can stand to make very little money off of you. If you understand and comply by the terms, these credit cards will give you the opportunity get what you need now, and to pay it down over a long period of time without the burden of interest.
Offer ends 2 September 2018 Eligibility criteria, terms and conditions, fees and charges apply Enjoy a 0% introductory rate on purchases and balance transfers, plus, earn Velocity Points on your everyday purchases.
0% p.a. for 14 months
Virgin Money Credit Card Offer
Offer ends 2 September 2018
Eligibility criteria, terms and conditions, fees and charges apply
Enjoy a 0% introductory rate on purchases and balance transfers, plus, earn Velocity Points on your everyday purchases.
Compare Current 0% Purchase Credit Card Offers
How do 15 month interest free credit cards work?
New customers who apply for a credit card offering an interest-free period will get all the features that you find with any card, with the bonus of a long term, no interest purchase rate offer.
Upon approval, you will have the benefit of not being charged any interest on eligible purchases you make for 15 months. Since you are not accumulating debt in interest, ideally, you should find it easier to pay it down than a standard credit card. All interest-free offers come with terms and conditions attached, so make sure to consider these before applying.
At the end of the introductory interest-free period, any balance remaining on your account will start to accrue interest at the revert rate, usually the standard variable purchase rate. So make sure to budget for your repayments to make the most of the interest-free offer.
How can I compare interest free credit cards?
Not only should you be looking at the specific terms of an interest-free offer, you need to consider the other features of the credit card in order to determine its benefit to you. Look at the following points carefully, and compare them between different cards before making a final choice:
- Length of low rate offer. Not all purchase rate offers are at 15 months. Ensure that the interest-free period you are given is sufficient for your planned purchases.
- Revert rate. Check to see what the interest rate reverts to once the 15 month period ends. With some cards it will be the purchase rate.
- Annual fee. Annual fees vary greatly between different credit cards and should be one of your comparison points.
- Minimum repayment amount. While you have 15 months before you're charged any interest on your purchases, you still have to make your credit card's monthly minimum repayment.
- Rewards or other features. If you're opting for a credit card that also offers rewards, make sure that you'll get value from them, and that it won't tempt you to overspend.
What are the drawbacks of taking up an interest-free credit card promotion?
Annual fees, high revert interest rates and the length of the introductory offer are all features of a 15 month interest-free credit card that can hurt you if you don’t carefully choose the one with suitable terms for you. However, the primary drawback to a long-term 0% purchase interest promotion is the risk that your debt will not be repaid by the end of the interest-free period.
A 15 month interest free credit card definitely has its advantages, but only if you use it right. Compare your various options carefully against your spending habits to make sure that this is the right product for you.Back to top
How can I apply for an interest free credit card offer?
How you apply will depend on the bank and credit card you have chosen after doing your research. Still, there are some standards that most banks follow during the application process regarding eligibility:
- Age. You must be 18 years of age to apply for a credit card in Australia.
- Residential status. Whether or not the offer is available to Australian residents only will be of special concern to those who are living in Australia with a temporary work or student visa.
- Credit score. Banks will not offer credit cards to individuals who have a poor credit score.
- Income. Most credit cards will have a minimum income requirement in order to qualify.
You will also need to have the following details during the application process:
- Contact information. The bank will need to be able to reach you with any additional questions either by phone or via email.
- Residential information. A physical address within Australia will be required.
- Income information. Proof of how much money you make can be shown with your current pay slips or tax documents.