These cards offer the best interest free options - either through a high number of interest free days or no interest on purchases, coupled with low fees.
7+
Great
Reasonable interest free options but may charge higher fees or have a lower number of interest free days.
5+
Standard
These cards may offer a lower number of interest free days or higher annual fees.
0+
Basic
While these cards may offer interest free days on new purchases, they may be more suited to other categories.
This article was fact-checked and reviewed by Nicole Pedersen-McKinnon, an accredited and award-winning finance broker and industry mentor. Content has been updated for 2024.
The lowdown on the interest free Finder score
Every month we carefully analyse over 300 credit card products and assess five features and benefits of each card. We assign a Finder Score out of 10 for each feature, and adjust the scores depending on what category we're looking at.
To be included for the interest free score, credit cards must:
Be available to general consumers
Have 0% interest rate (ongoing or offers) on new purchases
Credit card scores are category-specific (e.g. cashback, frequent flyer), meaning the same card will receive a different score within each category.
The score process is run by our insights and editorial team, independent of any commercial partnerships. Products are reviewed objectively. Our intention is to enable informed financial decision-making. However, we do encourage you to consider your own financial circumstances when making a financial decision.
Interest-free credit cards - score weightings
Feature
Definition
Assessment
Weight
Interest Free Days
Number of days for no interest or fees on new purchases
Longer periods earn more points, up to market maximum. 0% purchase rate cards are assigned a default 30 days
10%
Purchase Rate Offer Period
Number of months for interest free purchase rate
Higher the number of months, better the score
50%
First-Year Fee
Annual fee charged in the first year of ownership
Lower fees score higher. $0 fee receives the maximum points
10%
Ongoing Annual Fee
Annual fee charged from the second year onwards
Lower fees score higher. $0 fee receives the maximum points
10%
Purchase Rate
Interest rate on new purchases
Lower rates score higher
20%
Breaking down the score tiers
9+ Excellent - These cards offer the best interest free options - either through a high number of interest free days or no interest on purchases, coupled with low fees.
7+ Great - Reasonable interest free options but may charge higher fees or have a lower number of interest free days.
5+ Satisfactory - These cards may offer a lower number of interest free days or higher annual fees.
Less than 5 – Basic - While these cards may offer interest free days on new purchases, they may be more suited to other categories.
What is an interest free credit card?
An interest free credit card offers you a 0% interest rate, usually for an introductory period. After that, any unpaid balance will be charged interest until you pay it off. This gives you a set period of time when you can use the credit card without being charged interest.
Interest-free deals are usually promotional, so you need to apply before an offer ends to take advantage of the 0% interest rate. You also need to make minimum repayments each month (usually about 3% of your total balance) but it's wise to pay off more if you can.
Example: How much you can save with an interest-free card
Say you want to book a holiday for $3,000 and plan to pay $250 off the balance each month.
If you paid for it on a credit card with a 20.16% p.a. interest rate, it would take you just over a year (13.51 months) to pay off the balance and cost you around $378 in interest charges.
In comparison, if you had a credit card that offered 0% p.a. on purchases for 12 months and made the same $250 monthly repayments, you could pay off the holiday in 12 months with no interest charges.
Types of credit cards that offer 0% interest
There are 3 types of cards that offer 0% interest:
Credit cards with 0% interest on purchases
Balance transfers credit cards
0% interest credit cards that have monthly fees instead
0% purchase credit cards
Offer 0% interest on new purchases for a promotional period, typically between 3-15 months and sometimes longer (e.g. 20 months). Since the average credit card interest rate in Australia is about 20% p.a., these interest-free offers are designed to help you save money and avoid collecting debt.
This type of card could be useful if you have some big purchases to make, such as booking a holiday, buying furniture or organising Christmas gifts, and you want more time to pay them off without being charged interest.
0% balance transfer credit cards
Charge 0% interest on balance transfers for a promotional period, ranging from 6 months to 32 months. If you're paying an average Australian interest rate of about 20% p.a., a 0% balance transfer could save you heaps on interest.
This type of card could be useful if you have a credit card or personal loan debt that you're struggling to pay off. Moving all the debt onto one card can simplify your repayments and help you save on annual fees as well.
No interest, monthly fee credit cards
These cards charge a monthly fee instead of interest when you use them or carry a balance. This means you'll know exactly how much you'll have to pay. Monthly fees range from $10 to $25 and are set based on your credit limit.
This type of card has a similar structure to popular buy now pay later plans, rather than other interest-free credit cards. When comparing, make sure the monthly fee is less than the interest you'd pay on a low rate card.
Pros and cons of interest free credit cards
Interest free credit cards can be a useful tool to help you save money when you want to buy now and pay later. They can also help you pay off existing debt faster. But there are some potential downsides to these offers. Make sure you consider all the pros and cons.
Pros
Save on interest costs. The obvious benefit of these cards is that you won't have to pay interest for the introductory period.
Pay off debt faster. By not paying interest on your balance, you'll be able to pay it off a lot faster because the amount won't be creeping up every month.
Complimentary extras. Some interest-free credit cards offer perks like travel insurance or rewards that could help you get more value out of the card.
Cons
Revert rate. If you don't pay off your balance in full during the introductory period, this is the interest rate you'll pay on the remaining balance.
Temptation to spend. Because you're putting off paying interest, it could be tempting to spend more than you can actually afford in the short term.
Credit score impact. If you already have a weak credit score, another enquiry could decrease it further and you may not be approved.
How to compare interest free credit card offers
If you want to get a credit card with an interest-free period, consider these features and details to find one that's right for you:
How long is the interest-free period?
Unless you've got some short-term purchases in mind, the longer the introductory period, the better. This gives you more time to make interest free purchases and pay them back before the revert rate kicks in.
Tip: You'll usually get the most value from a 0% interest offer if you can pay off the entire credit card balance before interest applies. You can use a repayment calculator and set calendar reminders to help you pay it off before the end of the introductory period.
What is the revert purchase interest rate?
This is the rate you'll pay if you don't pay off your purchases before the introductory period expires and also the rate you'll pay ongoing – and can be as high as 27% p.a.
What are the requirements for interest-free days?
Credit cards that offer interest-free days for each statement cycle usually have specific conditions around eligible purchases and repayments. For example, cash advances are not eligible for interest-free days and you must pay your balance in full by the due date on each statement.
Is there a rewards program?
Some cards earn rewards or frequent flyer points for every $1 spent on the card. These programs can provide extra value, particularly if you have an interest-free credit card for purchases.
While some cards have $0 annual fees, others charge fees that range from $25 to over $700 each year. And if you get a no interest credit card that charges a monthly fee instead, the costs could add up over time. Either way, make sure the savings you'll get from the interest-free period will offset the cost of these account fees. You may even want to consider a credit card with no annual fee to help save even more.
What about credit cards with interest-free days?
Many credit cards offer a certain number of interest-free days for each statement period. For example, up to 55 days interest-free on purchases.
You'll typically get this interest-free period when you pay the total balance listed on your credit card statement by the due date. How many interest-free days you'll get for each purchase also depends on when it's made in your statement cycle. See Finder's guide to interest-free days to learn more about how this works.
When will I be charged interest?
Even if you get a 0% interest rate offer for purchases or balance transfers (or both), there are times when you may be charged interest on your account. Here are some examples of 0% purchase credit cards and 0% balance transfer cards.
On a 0% purchase credit card
If you still carry a balance at the end of the introductory period. The 0% p.a. offer only applies for an introductory period and will go back to the standard purchase interest rate when the offer ends. For example, if the card offers 0% p.a. for 6 months and reverts to 19.99% p.a., the interest-free period will end 6 months after you get the card. Then, any remaining balance from purchases would be charged the 19.99% p.a. interest rate.
When you use your card for a transaction that isn't considered a "purchase". Most everyday spending will be eligible for the interest-free offer. But transactions such as cash advances will be charged interest at the cash advance rate from the time they are made. This usually includes ATM withdrawals, foreign currency, gambling products (e.g. lottery tickets) and sometimes even BPAY payments. But keep in mind that the definition of a cash advance is different between credit card providers.
If you don't make minimum monthly repayments. Even with an interest-free period on your purchases, you'll have to pay at least the minimum amount required by the due date on each credit card statement (usually about 3% of your total balance).
On a 0% balance transfer credit card
If you make new purchases. The interest rate for purchases will apply if you make a new purchase when you have a balance transfer. And even if you pay off the purchase by the statement due date, you won't eligible for interest-free days on purchases with most cards while you're paying off a balance transfer.
If you use your card for a cash advance or cash equivalent transaction. If you use your card for an ATM withdrawal, gambling or another cash advance transaction, you'll immediately attract the cash advance interest rate.
If you don't pay off your balance transfer debt by the end of the introductory period. If the introductory 0% period ends and you have an outstanding balance to pay, any remaining balance transfer debt will attract the revert rate. This is usually the cash advance interest rate.
The only time you'll never pay interest on a credit card is if you get a no interest credit card that charges a flat, monthly fee instead, such as the CommBank Neo or NAB StraightUp. But you'll still be charged fees while you're using the card and paying it off. That's why it's important to compare a few cards and choose one that works for you.
Yes, you still need to pay at least the minimum amount required by the due date on each statement. This is usually around 2-3% of your account's closing balance, and the exact amount will be listed on your statement.
As an example, if you spent $3,000 on a credit card with a 3% minimum repayment amount, you'd need to repay at least $90 by the due date on your statement. Paying more than the minimum amount also helps you avoid ongoing debt and costs. You can use Finder's credit card repayment calculator to help figure out how much to pay each month and what's affordable for you.
If you don't pay at least the minimum amount listed on each monthly statement by the due date, some of the issues you could face include:
Late payment fees. If you miss a payment or make it after the statement's due date, you could be charged a late payment fee. Typically, it will cost around $10 to $30 on a standard credit card, or more on a charge card.
Cancelled promotional interest rates. The interest-free promotion may be cancelled if you don't make your minimum required payments. This penalty varies depending on the card, so make sure you check the terms of your offer.
Bad credit. Payment history is included on your credit report, which means late payments (or more extreme default accounts) could lower your credit score.
If you're struggling to make a repayment on time, contact your credit card provider as soon as possible so they can discuss repayment options based on your individual circumstances.
There is no one "best" interest-free credit card because the right one for you depends on what you plan to use it for. You can find a card that works for you by comparing features including the type of 0% offer, how long the interest-free period lasts and the revert rates that apply after the offer ends as well as any other fees or features.
Credit cards also have eligibility criteria, such as credit history and income. Banks and other lenders need to consider these details as part of their responsible lending obligations, so make sure you check if you meet these requirements before applying for a card.
Yes, as long as the promotional 0% interest rate applies – and the card is accepted overseas – your overseas purchases won't attract any interest. But you may be charged a foreign transaction fee when you make a transaction in an international currency. And if you withdraw cash, buy foreign currency or make any other transactions that are considered "cash advances" (instead of purchases), they are charged interest at the cash advance rate for your card.
A 0% purchase rate offer lasts for an introductory period when you first get the new card. During this time, you won't be charged interest on your credit card 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 period 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 promotional 0% purchase rate period, standard interest-free days aren't necessary. If your card comes with interest-free days (for example, up to 55 days), you'll be able to take advantage of them when the promotional period ends.
With a 0% purchase rate credit card offer, the promotional 0% interest rate is available for a fixed time period. For example, let's say you get a card offering no 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, and if you make a purchase 11 months after getting the card, you'll only have 1 month interest-free for that purchase. After that, the 12-month 0% interest offer will end and the standard purchase rate will apply to new purchases.
The revert rate is different for each credit card. Purchase rates in Australia typically range from around 8% p.a. to 27% p.a. in 2024. You can check this rate before you apply – look for details of what the 0% interest rate reverts to at the end of the introductory period or check the Key Fact Sheet made available.
You could also look at your credit card statement, online account details or contact the credit card company. If you find yourself struggling to pay back what you owe, consider moving your outstanding debt to a 0% balance transfer credit card, which will give you more time to repay it interest-free.
Introductory 0% interest rate offers change regularly, so there isn't one card that always offers the longest 0% period. In general, the cards on this page usually offer 0% interest on purchases for 3 to 15 months or more. And some balance transfer offers charge 0% interest for up to 32 months.
You can sort the credit cards by "purchase rate" or "balance transfer rate" in the comparison table above to see which cards offer the longest interest-free period.
If you repay the total amount listed on your statement by the due date, you'll typically get an interest-free period for purchases. There is also a small range of credit cards in Australia that charge no interest ever, with a flat monthly fee instead, including:
CommBank Neo - 0% interest and a $12-$22 monthly fee based on your credit limit
Community First n0w - 0% interest and a $9-$19 monthly fee based on your credit limit
NAB StraightUp - 0% interest and $10-$20 monthly fee based on your credit limit
Westpac Flex - No interest ever and a $10 monthly fee
Wizitcard - No interest ever and a $19 monthly fee
Why you can trust Finder's credit card experts
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You save time. We spend 100s of hours researching credit cards so you can sort the gold from the junk faster.
You compare more. Our comparison tools bring you more credit cards from across the market.
As an authority on all things personal finance, Sarah Megginson is passionate about helping you save money and make money. She is an editor and money expert with 20 years’ experience and an extensive background in property and finance journalism. Sarah holds ASIC RG146-compliant Tier 1 Generic Knowledge certification, and she's a regular media commentator, appearing weekly on TV (Sunrise, Channel 7 news, Nine news), radio (KIIS FM, Triple M, 3AW, 2GB, 6PR) and in digital and print media. See full bio
Sarah's expertise
Sarah has written 186 Finder guides across topics including:
Hi Faisal,
Credit cards can only be issued to people aged 18 and older if they meet the eligibility requirements. Some credit cards also allow people under 18 to be added as a secondary cardholder, but usually they need to be 16 or over. If you want a card for someone of a different age, you could consider debit cards for children or other prepaid cards that sometimes have lower age requirements. I hope that helps.
HayleyNovember 20, 2016
Hi,
I am needing an amount of $6800 and will be able to pay it back over a year. I will not be using the card for anything else but this one off overseas payment. What would be the best thing for me to do?
Finder
DeeNovember 21, 2016Finder
Hi Hayley,
Thanks for reaching out.
If you are looking for a credit card for overseas payment, you may want to consider reading our overseas transaction fees guide and find credit cards that may not charge foreign currency conversion fees.
You may also want to consider cards with 0% purchase interest rate. These cards allow you to save on interest payments during the promotional period in case you don’t intend to pay your balance in full at the end of the billing period.
Cheers,
Anndy
davidFebruary 15, 2016
if i pay out the balance in the interest free period can i then cancel the card with no fees.
Finder
JonathanFebruary 15, 2016Finder
Hi David, thanks for your inquiry!
Yes this is generally accepted across balance transfer credit cards. Once you have repaid your outstanding balance you can cancel the credit card anytime.
Cheers,
Jonathan
sharonSeptember 8, 2015
Good morning, I read with interest the balance transfer credit cards with no interest for a period of time. I, like many people have that problem of having not paid my CC on the due date and now have a big balance. I currently have an ANZ Platinum CC, can I apply for a balance transfer with no interest?
Thank you
Finder
JonathanSeptember 8, 2015Finder
Hi Sharon,
Thanks for your inquiry.
Balance transfers can be a great way to repay an outstanding credit balance interest-free. You may like to compare balance transfer offers and cards.Select ‘Go to Site’ to head over to their website to apply. Please ensure to read through the relevant product disclosure statement and terms and conditions to ensure that you got everything covered before you apply to the card.
Cheers,
Jonathan
BillyJune 12, 2015
Hi, I’m looking for a credit card to allow me to pay bills between payments from work. Would use it very little only when my funds are a bit tight. Any recommendations? Suggestions
Credit cards with high annual fees and rates usually come with extra features such as concierge services, complimentary insurance, and rewards programs. If you are after a credit card to use as a backup for your finances, some of these no frills options may be of interest.
You can select the “Go to Site” button of your preferred credit card to proceed with your application. You can also contact the provider if you have specific questions. A gentle reminder, please ensure to read through the relevant product disclosure statement and terms and conditions to ensure that you got everything covered before you apply.
I hope this has helped.
Thanks,
Sally
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You pay nothing. Finder is free to use. And you pay the same as going direct. No markups, no hidden fees. Guaranteed.
You save time. We spend 100s of hours researching credit cards so you can sort the gold from the junk faster.
You compare more. Our comparison tools bring you more credit cards from across the market.
i need a credit card for all ages
Hi Faisal,
Credit cards can only be issued to people aged 18 and older if they meet the eligibility requirements. Some credit cards also allow people under 18 to be added as a secondary cardholder, but usually they need to be 16 or over. If you want a card for someone of a different age, you could consider debit cards for children or other prepaid cards that sometimes have lower age requirements. I hope that helps.
Hi,
I am needing an amount of $6800 and will be able to pay it back over a year. I will not be using the card for anything else but this one off overseas payment. What would be the best thing for me to do?
Hi Hayley,
Thanks for reaching out.
If you are looking for a credit card for overseas payment, you may want to consider reading our overseas transaction fees guide and find credit cards that may not charge foreign currency conversion fees.
You may also want to consider cards with 0% purchase interest rate. These cards allow you to save on interest payments during the promotional period in case you don’t intend to pay your balance in full at the end of the billing period.
Cheers,
Anndy
if i pay out the balance in the interest free period can i then cancel the card with no fees.
Hi David, thanks for your inquiry!
Yes this is generally accepted across balance transfer credit cards. Once you have repaid your outstanding balance you can cancel the credit card anytime.
Cheers,
Jonathan
Good morning, I read with interest the balance transfer credit cards with no interest for a period of time. I, like many people have that problem of having not paid my CC on the due date and now have a big balance. I currently have an ANZ Platinum CC, can I apply for a balance transfer with no interest?
Thank you
Hi Sharon,
Thanks for your inquiry.
Balance transfers can be a great way to repay an outstanding credit balance interest-free. You may like to compare balance transfer offers and cards.Select ‘Go to Site’ to head over to their website to apply. Please ensure to read through the relevant product disclosure statement and terms and conditions to ensure that you got everything covered before you apply to the card.
Cheers,
Jonathan
Hi, I’m looking for a credit card to allow me to pay bills between payments from work. Would use it very little only when my funds are a bit tight. Any recommendations? Suggestions
Hi Billy,
Thanks for your question.
If you are only planning on using your credit card sporadically, you may wish to consider low interest rate credit cards or no annual fee or a low income credit card.
Credit cards with high annual fees and rates usually come with extra features such as concierge services, complimentary insurance, and rewards programs. If you are after a credit card to use as a backup for your finances, some of these no frills options may be of interest.
You can select the “Go to Site” button of your preferred credit card to proceed with your application. You can also contact the provider if you have specific questions. A gentle reminder, please ensure to read through the relevant product disclosure statement and terms and conditions to ensure that you got everything covered before you apply.
I hope this has helped.
Thanks,
Sally