Compare credit cards with 0% interest rate offers that can help you save on card costs.
If you want to pay off existing debt or if you have some big expenses coming up, there is a wide range of credit cards that offer an introductory 0% p.a. interest rate for balance transfers or purchases. Depending on the introductory offer, you may even get a 0% p.a. interest rate for both purchases and balance transfers. After the introductory period ends, a higher, standard interest rate will apply to any debt that's left on the card.
As well as promotional 0% interest credit card offers, many credit cards 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 – even if you don't have an introductory offer. Use this guide to compare the different types of zero interest credit cards available and learn how they work so you can find the right one for you.
Compare 0% balance transfer and purchase credit cards
What types of no interest credit cards are available?
There are many types of 0% interest credit cards available to suit different needs. Depending on the card you choose, you could get an introductory 0% interest period for purchases or balance transfers or interest-free days on purchases for each billing period.
0% purchase rate credit cards
If you're planning to buy a big-ticket item or want to use a credit card to pay for a holiday, Christmas 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 18 months. After that, the 0% interest rate will revert to a higher, standard variable interest rate for any remaining balance on the card.
Compare credit cards with 0% interest rates on purchases
0% balance transfer cards
If you have an existing debt, a 0% balance transfer credit card can help you save money by charging no interest during the introductory period. The length of the 0% offer varies between cards but is usually between 6 to 24 months. At the end of the introductory period, the 0% 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 balance transfer credit cards with 0% interest periods
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. Usually, 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
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.
- 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.
- Make larger purchases. If your card offers 0% p.a. interest on purchases, this can give you the flexibility to make larger purchases and pay them off with no 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 get a 0% p.a. 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 apply interest to 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 0% p.a. interest credit card 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.
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.
Documents and details
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.
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