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Do you you have some big expenses coming up? Or, are you paying off a debt you already owe? You could save on card costs by getting a credit card that offers no interest for an introductory period on purchases, balance transfers or both. There are also cards that offer no interest on an ongoing basis and charge a monthly fee instead. Use this guide to compare your options and figure out how you can save.
Offer ends 13 May 2021
Eligibility criteria, terms and conditions, fees and charges apply
Reward your spending with Flybuys points and save with 0% interest on balance transfers and purchases for the first 12 months.
Use the calculator in the table below to see how much you could save with an interest-free offer on purchases based on how much you'll spend.
*The use of the terms "best" and "top" are not product ratings and are subject to our disclaimer. There is no perfect order or perfect ranking system for the products we list on our Site, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.
These cards charge 0% interest on purchases for an introductory period, usually from 3 to 17 months. This 0% interest period starts when you're approved for the card. If you don't repay balance by the end of this period, any remaining debt will then be charged interest at the card's purchase rate.
Interest-free deals are usually promotional, so you'll need to apply by a specific offer end date to take advantage. You're still required to make minimum repayments each month (usually about 3% of your total balance) but it's wise to pay off as much as you can and pay off the entire account before interest applies.
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 four types of cards that offer 0% interest: cards with interest-free promotions on purchases, on balance transfers, on both, or ongoing with monthly fees.
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. However, 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:
Many credit cards offer a certain number of interest-free days for each statement period. For example, your card may offer up to 55 days interest-free on purchases.
Usually, you can only take advantage of this interest-free period when you pay the balance that's listed on your credit card statement in full 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's a snapshot for both 0% purchase credit cards and 0% balance transfer cards.
Whether you're making new purchases or paying off an existing debt, a card with an interest-free offer can help you save on interest and get your credit card under control. As there are many competitive 0% promotions in the market, it's important to compare your options to find the right type of card for your needs.
Yes, regardless of the 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.
Regardless of the type of interest-free credit card you choose, you still need to make repayments by the statement due date each month. If you fail to maintain these regular repayments, some of the repercussions you could face include:
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. Customer service staff will assess your situation and discuss repayment options based on your individual circumstances.
There is no one best interest-free credit card as the right one for you will depend on your financial position and what you plan to use it for. You can compare all the features, including the type of 0% offer, how long the interest-free period lasts for, 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.
Typically, yes. As long as the promotional 0% interest rate applies, 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 the individual credit card providers to find out if this fee would be eligible for a particular interest-free promotion.
With this type of credit card, 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.
The cards on this page usually charge 0% interest on purchases for 3 to 15 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 be able to 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 topBoth buy now pay later plans and credit cards give you ways to pay off purchases over time – here's how they compare.
New no interest monthly fee credit cards, like the NAB StraightUp and CommBank Neo, offer no interest charges, limits up to $3,000 and only charge a monthly fee when you use it. Read more to find out more about how they work in our comprehensive guide.
Many stores and services offer interest-free payment plans, so what’s the catch?
If you need to pay for travel, furniture, white goods or other big ticket items, weigh up these pros and cons to decide if using a credit card will work for you.
From 0% interest credit card offers for purchases and balance transfers to interest-free days on purchases, compare no interest credit card options here and find one that suits your needs.
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
I have an existing credit card that I am trying to pay off. I am finding it hard as the interest I get charged each month is almost the same amount as my monthly repayments, which means I am getting no where. I have talked to some friends that have mentioned I should transfer my debt to an interest free credit card that way I can pay it off within the time of the interest free offer. Will this be beneficial for me? Is there any hidden charges I should be looking for? I am confident I can pay this off within 6-12months, as long as I don’t get charged interest.
Hi Angela,
Thanks for your question.
Your friends were likely referring to a balance transfer, which allows you to bring over an existing credit card balance to a new card and pay 0% p.a. interest on it for an extended amount of time. You can compare and apply for balance transfer credit cards as well as learn more about them. A few things to be aware of with balance transfer credit cards:
– Balance transfer rate: The rate you will be charged on the balance you bring over.
– Annual fee: Will you be charged an annual fee to use this product?
– Balance transfer revert rate: This is the rate you are charged after the balance transfer promotional period is over. Most of these cards revert to either the cash advance rate or purchase rate.
– Balance transfer period: How long you will receive the promotional balance transfer rate for.
– Balance transfer fee: Some cards may charge you a fee to bring over your credit card balance. This fee is often a percentage of the balance you bring over (eg. 3%)
This information can all be found in our credit card review pages, which can be found by clicking on ‘more info’ from the comparison table on the page I linked above. After you’ve reviewed your options and found the best card for your needs and situation, you can click ‘Go to Site’ to apply.
I hope this has helped.
Thanks,
Elizabeth
If you pay my card right out what interest rate will you charge me?
Hi Michael. Thanks for your question, but I’m not sure I understand. Are you referring to the balance transfer rate of interest? You can find this information in the comparison tables and in the review pages for each card. Jacob.