No Interest Credit Cards
Compare credit cards offering no interest periods that can help you save money.
We’re committed to our readers and editorial independence. We don’t compare all products in the market and may receive compensation when we refer you to our partners, but this does not influence our opinions or reviews. Learn more about Finder.
If you need to pay off debt you already owe or if you have some big expenses coming up, there is a range of credit cards that offer no interest for an introductory period on balance transfers, purchases or both. There are also cards that offer no interest on an ongoing basis and charge a monthly fee instead. Use this guide to learn more and compare your options.
What types of no interest credit cards are available?
Depending on the card you choose, you could get an introductory no interest period for purchases, balance transfers, both, or interest-free days on purchases for each billing period.
Not sure what type of no interest credit card you're looking for? Let's take a closer look at the different options.
No interest on purchases credit cards
If you're planning to buy a big-ticket item or want to use a credit card to pay for a holiday, your Christmas shopping or another major event, a 0% purchase credit card can help you save on interest charges. These cards offer no interest on purchases for an introductory period, which can vary from 3 to 15 months. After that, the 0% interest rate will revert to a higher interest rate that applies to any unpaid purchase balance on the card, as well as any new purchases.
Compare credit cards offering no interest on purchases
No interest balance transfer cards
A 0% balance transfer credit card can help you save money on existing debt by charging no interest during the introductory period. The length of the offer is usually between 6 to 24 months and the 0 percent rate applies to existing debt that you transfer to the new card. At the end of the introductory period, the interest rate will revert to a higher standard rate. So if you want to have zero interest on your credit card debt, make sure you pay it off in full before the introductory period ends.
Compare no interest balance transfer credit cards
No interest on purchases and balance transfers credit cards
If you have credit card debt you need to pay and also need to make new purchases, a credit card offering no interest on both purchases and balance transfers could be what you're looking for. These will typically give you a shorter period of time (relative to a single offer) to pay off a balance transfer as well as make new purchases with no interest. Both offers will end (not always at the same time), at which point both interest rates will revert back to standard and you will start to accrue interest.
Compare credit cards offering no interest on purchases and balance transfers
Interest-free days offers
This is an ongoing credit card feature that offers you 0% interest on purchases for a set number of days in each statement period, usually up to 44 or 55 days. With most credit card issuers, interest-free days are only available when you pay your balance in full by the due date on each statement. You can learn more about credit cards that offer interest-free days here.
Compare credit cards with up to 55 interest-free days
No interest monthly fee credit cards
New to the Australian market in 2020, there are a couple of credit cards that offer no interest on an ongoing basis and charge a monthly fee instead. These no interest monthly fee credit cards offer an alternative to buy now pay later schemes, more so than traditional credit cards.
Compare no interest monthly fee 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 to help you weigh up each card and offer:
- Length of the introductory offer. If you're applying for a card with no interest on purchases or balance transfers, make sure you check how long the promotional rate lasts. This will help you work out how much you need to repay each month to clear the card's 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 prepare 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 the credit cards that feature no interest offers also come with rewards programs that let you earn points for every $1 spent. If you want to earn rewards, look at how many points you're likely to earn (based on your spending) and how you could redeem them. This will help you work out if the card is right for you. But if you're using a card for a 0% balance transfer offer, be aware that rewards should not be a priority when you're focused on repaying your debt.
- Complimentary extras. Many credit cards offer complimentary perks such as travel insurance, purchase 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 during the interest-free period.
- Pay off credit card debt. Moving your existing credit card debt to a card that offers 0% p.a. on balance transfers gives you a way to save on interest charges during the introductory period, which can also help you pay off the debt faster.
- Save on interest for larger purchases. If your card offers no interest on purchases, this can give you the flexibility to make larger purchases and pay them off without interest charges during the interest-free period.
- Revert rate. At the end of the introductory period, the 0% p.a. interest rate will revert to a higher, standard variable rate.
- Repaying multiple balances. If your credit card has balances from different types of transactions, you may only be paying zero interest for one part of your overall account balance. For example, a credit card that offers 0% p.a. on balance transfers will charge no interest on debt you move to the card but could charge interest on new purchases you make with the card.
- 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 no interest credit card online in a few minutes. Remember to check the the interest-free offer terms and conditions 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.
The eligibility requirements vary from card to card, but here are some of the conditions you can expect during the application process.
- Age. You 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.
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, there are many different ways to avoid interest charges 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
Here you'll find answers to some of the most popular questions about no interest credit cards and offers. You can also get in touch with us by leaving a comment or question below.
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 save on credit card 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 introductory 0% interest period ends. Otherwise, any debt remaining will attract interest at the standard rate for that card, which could be much higher.
What happens if I am unable to pay off my credit card balance before the 0% promotional period ends?
Any unpaid balance will be charged at the standard variable rate described in the Product Disclosure Statement. This is also known as the revert rate and is usually either the card's standard (or ongoing) purchase rate or cash advance rate. To avoid any nasty surprises, make sure you check what these rates are before you apply.
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.
Are there other fees that apply for no interest credit card transfers?
There are a few fees to look for when you want to transfer your existing debt to a card offering 0% interest on balance transfers during the introductory period, including:
- Balance transfer fee. Some 0% balance transfer credit cards charge a one-off fee for processing the transfer. This is usually worth 2–3% of the total debt moved to the new card, so it's worth factoring in when you're comparing cards to help you find one that's affordable.
- Annual fee. Usually, credit card annual fees are charged when you first open an account. What's more, many credit card providers classify the annual fees as a new purchase, which means you could be charged interest at the card's purchase rate if you don't pay it off in full.
- Interest on purchases. Unless you have a card offering zero interest on transfers and new purchases, you'll be charged interest at your card's standard purchase rate if you use it to make payments. If you can avoid using the card and focus on paying down the balance transfer debt, you'll be able to make the most of the 0% interest period for your balance transfer.
Can I get a credit card with no interest and no fees?
Yes, it's possible to get a credit card that offers no interest and a $0 annual fee. For example, some credit cards with no annual fees could also offer an introductory 0% interest rate for purchases or balance transfers. Many of these cards also offer interest-free days on purchases if you pay your balance in full by the due date on each statement.
Another option is to look at a 0% purchase or 0% balance transfer card that waives the annual fee in the first year. This will give you no fees and no interest for the introductory period only. As introductory offers change, make sure you compare the latest credit card deals to see what options are available.
Picture: ShutterstockBack to top
More guides on Finder
Citibank Ready Credit
The Citibank Ready Credit unsecured revolving line of credit is available with a 3-year introductory rate of 5.9% p.a. on balance transfers.
Citi Rewards Card – Exclusive Offer
Take advantage of a 0% balance transfer offer for 30 months and a discounted annual fee for the first year with this exclusive Citi Rewards credit card offer.
Health Professionals Bank Credit Card
Get an introductory rate of 7.9% p.a. on purchases and balance transfers for 6 months and save with an ongoing $0 annual fee with the Health Professionals Bank Credit Card.
Financial Fitness Challenge Week 3: How to get the most out of a credit card
How to cut debt and make your credit card work for you.
Rejected out of hand: 1.5 million Aussies knocked back for a credit card
The fear of getting rejected for a credit card is real, according to Finder, Australia’s most visited comparison site.
Bank Australia Commercial Visa credit card
Designed to help you track business spending, this Bank Australia credit card offers cards for employees and interest-free days on purchases.
Credit card woes: Where do Aussies turn if they can’t pay off their plastic?
Only half of Australians who find themselves buried under out-of-control credit card debt could dig themselves out, according to Finder.
Over the limit: Pandemic pushes 2 million Aussies beyond credit means
Soaring unemployment and wage cuts have seen people increasingly overdrawing their credit cards, according to Finder, Australia’s most visited comparison site.
Defence Bank Foundation Credit Card
This card gives you a way to support a program that matches rescue dogs with veterans in need and enjoy a low interest rate on all your spending.
Free Loan Agreement Templates (Australia)
Learn how to write a loan agreement and find out where you can get free legal templates.
Credit Cards Comparison
* The credit card offers compared on this page are chosen from a range of credit cards finder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.