Save on costs and pay off your balance faster with a credit card that offers 0% p.a. interest on purchases or balance transfers.
Interest-free credit cards give you a period of time when no interest is charged on your account balance. The 0% interest period varies depending on the card, with some options giving you an introductory 0% p.a. interest rate for purchases or balance transfers and others offering interest-free days on purchases for each statement period.
Use this guide to compare interest-free credit cards in Australia, including different offers currently on the market. You can also find out about other features to consider so that you can find an interest-free credit card that suits your needs.
Compare interest-free credit cards
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Best* interest-free credit cards trending now
Compare the features of these interest-free credit cards to see if one is right for you.
- NAB Low Rate Platinum Card. Get 0% for up to 9 on purchases with this platinum card.
- Bankwest Breeze Classic Mastercard. This credit card offers 0% p.a. on balance transfers for up to 13 months.
- Virgin Australia Velocity Flyer Card - 0% Interest Offer. A points-earning card that offers 0% on purchases for up to 14 months.
- ANZ Frequent Flyer Black. Earn Qantas Points for your spending and get up to 55 days interest-free on purchases when you pay your balance in full by the due date on each statement.
What types of credit cards offer 0% interest?
There is a wide range of credit cards that offer interest-free days or 0% p.a. interest promotions. Here, you can find information on a range of different 0% interest credit card options based on how you plan to use your card.
0% purchase credit cards
This type of credit card allows you to make new purchases without paying interest during the introductory period, which is usually the first 3 to 15 months from when you get the new card. At the end of the introductory period, a higher standard variable purchase rate will apply to any remaining balance.
When will I be charged interest 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 revert to the standard interest rate when the offer ends. For example, if the card comes with 0% p.a. for 6 months, the interest-free period will end 6 months after your card was activated and any remaining balance will begin to collect interest.
- If you use your card for a transaction that isn’t considered a “purchase”. While most everyday spending will be eligible for the interest-free offer, transactions such as cash advances or cash equivalent transactions will be charged interest at the cash advance rate from the time they are made.
- If you don’t make minimum monthly payments. Even with 0% p.a. interest on your purchases, you'll have to pay at least the minimum amount required by the due date on each credit card statement.
0% balance transfer credit cards
A 0% balance transfer card offers an interest-free period on existing credit card debt that you move onto the new card. The 0% interest rate can last anywhere from 3 to 24 months or more depending on the offer. This gives you the opportunity to repay your debt without collecting any additional interest, which can help you put more money towards paying off the balance faster.
When will I be charged interest on a 0% balance transfer credit card?
- If you make new purchases. When you make a purchase on this type of card, the interest rate for purchases will apply from the time the transaction is made.
- If you use your card for a cash advance or cash equivalent transaction. With these transactions, interest charges and fees will apply from the time they are made.
- If you don't pay off your balance transfer debt by the end of the introductory period. If the balance transfer interest-free period ends and you have an outstanding balance to pay, you'll start collecting interest on it.
Compare interest-free balance transfer credit cards
0% purchase and balance transfer credit cards
This type of credit card offers an introductory 0% interest rate for both balance transfers and purchases. However, the promotional interest-free periods may be different lengths for balance transfers and purchases. For example, a card could offer 0% interest on balance transfers for up to 15 months but only 0% interest on purchases for the first 3 months.
When the introductory period ends, any remaining debt from purchases or balance transfers will attract interest at the standard variable rate for that card. This rate could also be different for purchases and balance transfers.
Compare credit cards with both 0% on balance transfers and purchases
Credit cards with interest-free days
Many credit cards offer a certain number of interest-free days for each statement period. For instance, you may see “up to 55 days interest-free” included as a feature on your credit card.
This 0% interest period is usually only available if you pay your balance off completely by the due date on each of your statements. If you carry a balance or make a late payment, you won't be eligible for interest-free days and interest will be applied for all purchases made during that statement period. Usually, you will only be able to access interest-free days again after you have paid your balance in full for one or two consecutive statement cycles.
How to compare interest-free credit card offers in Australia
If you want to get a credit card with an interest-free period, considering the following features and details can help you find one that's right for you:
- Introductory period. If the card offers a promotional 0% interest rate for purchases or balance transfers, check how long the introductory period is available for so you can factor this into your repayments and budget. Consider your budget and calculate whether or not you can repay the balance you put on the card while the introductory offer is in place. If not, you might want to look for a card with a longer promotional interest-free period.
- Standard interest rates. The standard variable purchase and balance transfer rates for credit cards can be as high as 22% p.a. Make sure you check what the promotional rate reverts to when comparing options so that you can budget for any interest charges that may apply if you're still carrying a balance at that time.
- Interest-free days requirements. 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.
- Rewards programs. 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. But be careful you don’t overspend in order to get more rewards, otherwise you may end up with unnecessary debt.
- Complimentary extras. Many cards offer complimentary extras such as international travel insurance, purchase protection, extended warranty coverage and concierge services. These perks may add value to your card, but only if you think you will use them.
- Annual fees. This cost can range from $20 to over $700 each year. Make sure that the cost of the annual fee doesn't offset the interest savings you'll make from the interest-free offer. You may even want to consider a credit card with no annual fee to help save on your costs.
- Balance transfer fees. Some cards have a one-off processing fee of around 2% to 3% when you apply for a balance transfer. If you choose an interest-free card for your existing debt, make sure you look for this fee when comparing options so you can find one that’s affordable.
Interest-free credit cards can be a convenient and affordable way to access additional funds in a wide range of situations. But it’s important to compare your options to find the right type of card for your needs.
Answers to the most popular questions about interest-free credit cards from our users
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