
- Interest-free offers
- $0 first year fee
- Ends 31 August 2022
- Interest-free offers
- $0 first year fee
- Ends 31 August 2022
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An interest free credit card usually offers you a 0% interest rate for an introductory period, before it switches to an ongoing interest rate. This gives you set period of time when you can use the credit card without being charged interest. But at the end of that period, any unpaid balance will be charged interest until you pay it off.
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.
Say you want to buy a new fridge that costs $2,000 and plan to put $200 a month towards paying it off. If you paid for it on a credit card with a 19% p.a. interest rate, it would take you 11 months to pay off the balance and cost you $194 in interest charges.
In comparison, if you had a credit card that offered 0% p.a. on purchases for 12 months, you could pay off the fridge over the course of 10 months and pay $0 in interest.
There are 3 types of cards that offer 0% interest: cards with interest-free promotions for purchases, balance transfers or both – plus cards that charge no interest ever and have monthly fees instead.
Offer 0% interest on new purchases for a promotional period, usually ranging from 3-18 months. Since the average rate in Australia is about 19% 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 buying furniture, booking a holiday or organising Christmas gifts, and you want more time to pay it off without being charged interest.
Charge 0% interest on balance transfers for a promotional period, ranging from 6 months to 30 months. If you're paying the average Australian interest rate of about 19% 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.
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 $22 and are set based on your credit limit.
This type of card is structured more similarly 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.
Interest free credit cards can be a useful tool to help you save money when you buy now and pay later as well as help you pay off existing debt and clear your balance faster. But there are some potential downsides to these offers. Make sure you consider all the pros and cons.
If you want to get a credit card with an interest-free period, consider the following features and details to find one that's right for you:
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.
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. This can be as high as 24% p.a., so make sure you factor this into your comparison.
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.
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.
Many cards offer extra perks such as complimentary international travel insurance, purchase protection, extended warranty coverage and concierge services. These perks add extra value to your card if you use them.
While some cards charge $0 annual fees, others charge fees that can range from $20 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.
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.
Usually, you can get this interest-free period when you pay the total balance that's 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. You can see Finder's guide to interest-free days to learn more about how this works.
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 for 0% purchase credit cards and 0% balance transfer cards.
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.
Want to get an interest free credit card now? Compare cards with 0% purchase rate offers in the table above. Or, check out Finder's guides to 0% balance transfer credit cards and no interest, flat fee credit cards.
Yes, no matter what type of interest-free credit card you choose, you will still need to pay at least the minimum amount required by the due date on your statement. The minimum amount will be listed on your statement and is usually around 2-3% of your account's closing balance, with a minimum dollar charge of around $20-$30 (although sometimes these minimum amounts could be higher).
If you want to avoid ongoing debt and interest costs, you should pay more than the minimum amount whenever you can afford to do so. You can use Finder's credit card repayment calculator to help figure out how much to pay each month.
With any credit card, you need to pay at least the minimum amount listed on each monthly statement by the statement's due date. If you don't, some of the issues you could face include the following:
If you're struggling to make a repayment by the due date on your statement, it's important to 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. The right one for you will depend on your financial position and 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 that apply.
Credit cards also have eligibility criteria (such as credit history and minimum income requirements), so make sure that you check if you meet these before applying.
Yes – as long as the promotional 0% interest rate applies (and the card is accepted overseas), your overseas purchases won't attract any interest. You may be charged a foreign transaction fee when you make a transaction in an international currency, though. Any transactions that don't count as purchases (such as withdrawing cash from an ATM or buying foreign currency) will be charged interest at the cash advance rate for your card.
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 aren't necessary. 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.
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 a credit card provider to find out if this fee would be eligible for a particular interest-free promotion.
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, 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.
The quickest way to check when the introductory period ends is to look at your credit card statement or call your credit card provider and ask for the exact date that the 0% p.a. purchase rate period will end.
If you haven't applied for a 0% p.a. purchase rate card yet, you can check how long the introductory period is by looking at the advertised offer. For example, a card might give you 0% p.a. on purchases for 6 months, which means the introductory period would last for the first 6 months from when you get the card or from the date you're approved for the card.
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". Make sure you check this interest rate before you apply. 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.
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 charge 0% interest on purchases for 3 to 18 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 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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Back to topAmy has been writing about personal finance for more than 13 years – including over 600 articles as a senior writer for Finder. She is also the editorial lead for Finder Green, covering sustainability across different industries. Her work has appeared in publications including Money Magazine, The Sydney Morning Herald, Financy, ABC News Australia and Equity Magazine. Amy also has a Bachelor of Arts in Journalism and Drama from Griffith University.
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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
hello,
im looking at having stomach surgery and I have most of the money but I am still needing about another $10,000 for this and I was wondering what credit card would be the best way for me to go as I would like to pay it off with in 12 months of having surgery.
thank you so much
Hi Sarah,
Thanks for your inquiry.
Depending on whether the surgery is billed as a purchase or cash advance (would be best to confirm with the medical company) this would determine whether an interest-free credit card would be ideal. You may refer to our page on comparing medical loans. Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you.
I hope this has helped.
Cheers,
Jonathan