Explore credit cards with 0% interest offers that help you save on your card costs.
There is a wide range of credit cards that come with no interest when you make purchases or when you transfer an existing debt to the new account. These 0% interest offers are typically part of a promotion that will last for a limited time, usually when you first get a new card. After the introductory period ends, a higher, standard interest rate will apply to any remaining debt.
There are also many credit cards that offer interest-free days for purchases when you pay your account balance in full by the due date on each statement. This gives you a way to use your card and pay no interest for your purchases. Use this guide to compare the different types of no interest credit cards available and learn how they work so you can find the right one for you.
0% p.a. for 14 months on balance transfers
Pay $0 annual fee for the first year
Offer ends 20 September 2017
Eligibility criteria, terms and conditions, fees and charges apply
St.George Credit Card Offer
Enjoy a long-term introductory rate on balance transfers combined with a waived annual fee in the first year.
- $0 p.a. annual fee for the first year ($55 p.a. thereafter).
- 13.24% p.a. on purchases
- Cash advance rate of 21.49% p.a.
- Up to 55 days interest free
Compare 0% balance transfer & purchase credit cards
What types of no interest credit cards are available?
There are many types of no interest credit cards available to suit different needs. Depending on the card you choose, you could get a promotional 0% interest period for purchases or balance transfers or interest-free days for each billing period. If you want to change your credit into cash, you can even get credit cards that offer low cash advance rates.
0% purchase rate cards
If you have a big-ticket purchase coming up (such as new furniture) or you know that your spending is due to increase (for example, for Christmas or a birthday), a 0% purchase credit card could help you repay your purchases faster without additional interest costs. 0% purchase rates are usually only in place for a promotional period (which can vary from 3 to 18 months) and will revert to a higher interest rate thereafter. Therefore, you should do your best to repay the entire balance before the introductory offer ends to minimise your total costs.
Compare credit cards with 0% interest rates on purchases
0% balance transfer cards
If you have an existing debt, you could use a no interest balance transfer credit card to repay your balance without collecting interest. Not only will this cut down your interest costs, but it could also help you repay your debt faster. The length of the 0% offer will vary between cards, but some products offer interest-free balance transfers for up to 24 months. As the 0% will revert to a higher purchase or cash advance rate at the end of the introductory period, you should do your best to pay down your entire debt before the standard rate applies.
Compare balance transfer credit cards with 0% interest periods
Interest-free days offers
Although this isn’t a type of card, it is a feature offered on a number of cards that allows you to make purchases without paying interest on them for up to a specific number of days. This offer is usually only available to cardholders who make their monthly payments in full. The number of interest-free days will vary from card to card, but they're usually between 44 and 55 days. You can compare credit cards that offer interest-free days here.
Compare credit cards with up to 55 interest-free days
Low cash advance rate cards
Currently, no credit cards in Australia offer credit cards with 0% interest on cash advances. These transactions usually collect the highest interest rate on the card (between 20% and 22%), but there are some credit cards that offer a lower ongoing cash advance rate. These cards are suited to cardholders who regularly use their credit card to withdraw cash from an ATM or make other cash-equivalent transactions.
Comparison of cash advance credit cards
How can I compare no interest credit cards?
Looking at a number of different credit cards with no interest offers will help you find one that suits your individual needs. So, here are the key details that will help you weigh up each card and offer:
- Length of the promotional offer. If you're applying for a card with 0% on purchases or balance transfers, make sure you check how long you'll enjoy this 0% promotional rate. This will help you determine how much you'll need to repay each month to clear the entire balance before the higher revert rate applies. If you have a large debt, you might want to opt for a card with a longer introductory offer.
- Revert rate. With promotional interest-free credit card offers, the 0% interest rate will revert to a higher rate at the end of the introductory period. Check what standard interest rate will apply to your balance so you can budget for any interest payments. Remember to compare this rate between cards to help you find one that will work for you.
- Annual fee. Most credit cards charge an annual fee, so make sure that the interest savings you receive outweigh this cost to get value out of the card.
- Rewards program. Some of credit cards that offer 0% interest also come with rewards programs that let you earn points for every $1 spent. If you want this type of benefit, look at how many points you're likely to earn (based on your spending) and the options you'll have for redeeming them. This will help you work out if the card is right for you. Also remember that if you're using a card for a 0% balance transfer offer, rewards may be less valuable as you shouldn't be using the card to make regular purchases while you're concentrating on repaying your debt.
- Complimentary extras. Many credit cards offer complimentary perks such as purchase or travel insurance, concierge services and airport lounge passes. These benefits can add value to your card but make sure you'll actually use them before including extras in your comparison.
What are the pros and cons of no interest credit cards?
- Save money. The most obvious perk of a no interest credit card is that you can save on interest costs while the promotion is in place.
- Consolidate your debt. If you use a 0% balance transfer credit card, you could repay your debt faster and save hundreds or thousands on interest.
- Make larger purchases. If your card has no interest on purchases, this can give you the flexibility to make larger purchases and pay them off over time without collecting interest.
- Revert rate. At the end of the introductory period, the no interest offer will revert to a higher, standard variable rate.
- Repaying multiple balances. If you’re carrying multiple types of balances, the interest-free offer may not apply to the balance you want. For example, a no interest period may apply to purchases but not cash advances.
- Temptation to spend. For some shoppers, having no interest on purchases may be used as an excuse to overspend.
How to apply for a no interest credit card
You can apply for a credit card that offers 0% interest online in a few minutes. Remember to check the terms and conditions that are attached to the interest-free offer so that you're sure you can use it. Then, once you've compared cards and chosen one that suits your needs, make sure you meet the eligibility criteria and have all the essential documents and details on hand to speed up the application process.
What are the eligibility criteria?
The eligibility requirements will vary from card to card, but here are some of the conditions you can expect during the application process.
- Age. You'll need to be 18 years old or older to apply.
- Residential status. Most Australian credit cards require cardholders to be permanent Australian residents or citizens. You can compare credit cards that accept temporary residents here.
- Annual income. You may need to meet a minimum income requirement to apply.
What information will I need to provide?
You’ll also be required to provide certain information during your application, so make sure to have the following handy:
- Identity details. To confirm your identity, the bank may ask for you to provide evidence such as your driver’s licence, passport or Medicare card.
- Employment verification. You be asked to provide evidence of your income, including pay slips, tax documents and your employer’s contact details.
- Other financial details. This could include any other sources of income, assets such as investments and savings accounts, as well as existing loans or cards that you use. You'll also need to provide a budget for your household expenses to help show the credit card issuer how you manage your money.
From introductory 0% offers to interest-free days, here are many different ways to pay no interest on a credit card. Just remember to check how each offer works and make sure you meet the requirements so that you can enjoy an interest-free period on the credit card you choose.
Frequently asked questions
Will I have to make monthly payments during a no interest promotional period?
Yes, you will still receive statements and be required to make minimum monthly payments. In some cases, the no interest offer may be removed if you miss a payment.
If you want to minimise your interest costs, it's wise to pay more than the minimum amount each month. Ideally, you should aim to pay the balance off completely before the revert rate applies.
What happens if I am unable to pay the balance before the promotional period ends?
Any unpaid balance will be charged at the revert rate described in the Product Disclosure Statement. This is usually either the standard purchase rate or cash advance rate. To avoid any nasty surprises, make sure you read over these before applying.
How do interest-free days work? When will they let me avoid interest charges?
Many credit cards offer an interest-free period for purchases during each statement or billing period. To enjoy paying no interest through this feature, you usually need to pay your account balance in full by the due date on each of your statements. You'll then get up to a certain number of days interest-free for purchases made in the next statement period. Read our guide on interest-free days to learn more about how this feature works.