credit card on top of calculator

Zero Percent Cards

Information verified correct on December 11th, 2016

et a card that gives you interest-free purchases and 0% a balance transfer all in one.

Learn how to save on interest with a zero percent balance transfer and how to make interest-free purchases.

Almost offering deals too good to be true, zero percent credit cards are a lender’s way of attracting new customers. These cards offer 0% balance transfer deals, interest-free purchases offers, or both. Make sure you pay off anything you spend before the end of the interest-free period though, at the end of the introductory period, the promotional interest rate will revert to a much higher rate of interest.

There’s a bit you should know about these types of credit cards. You can compare the deals on offer below and read about how to use one of these cards to your benefit.

St.George Vertigo Visa

St.George Vertigo 0% purchases and balance transfer credit card

A low rate credit card with a low annual fee. Benefit from the introductory offers on balance transfers.

  • $55 p.a. annual fee
  • 1% p.a. for 12 months (reverts to 13.24% p.a.) on purchases
  • 0% p.a. for 18 months on balance transfers
  • Cash Advance Rate of 21.49% p.a.
  • Up to 55 days interest free

Compare 0% Balance transfers and 0% purchases Credit Cards

Rates last updated December 11th, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
NAB Low Rate Credit Card
The NAB Low Rate Card offers 0% p.a. on purchases and balance transfers for 15 months. This card also comes with a low annual fee.
0% p.a. for 15 months (reverts to 13.99% p.a.) 0% p.a. for 15 months with a one off 3% balance transfer fee $59 p.a. Go to site More info
NAB Low Fee Card
Enjoy a low introductory rate of 0% p.a. on balance transfers and purchases for 15 months.
0% p.a. for 15 months (reverts to 19.74% p.a.) 0% p.a. for 15 months with a one off 3% balance transfer fee $30 p.a. Go to site More info
ANZ Platinum Credit Card - Exclusive Offer
Receive a low introductory offer of 0% p.a. on purchases for 3 months and 0% p.a. on balance transfers for 12 months. Also, enjoy an annual fee waiver in the first year.
0% p.a. for 3 months (reverts to 19.74% p.a.) 0% p.a. for 12 months $0 p.a. annual fee for the first year ($87 p.a. thereafter) Go to site More info
St.George Vertigo Visa
Introductory offer of 0% p.a. for 18 months on balance transfers and 1% p.a. for 12 months on purchases, plus a low annual fee.
1% p.a. for 12 months (reverts to 13.24% p.a.) 0% p.a. for 18 months $55 p.a. Go to site More info
St.George Vertigo Platinum
A platinum card with a balance transfer offer of 0% p.a. for 18 months and an introductory purchase offer of 1% p.a. for 12 months with an annual fee waiver for the first year.
1% p.a. for 12 months (reverts to 12.74% p.a.) 0% p.a. for 18 months $99 p.a. Go to site More info
Bank of Melbourne Vertigo Visa Credit Card
Enjoy a low annual fee combined with 0% p.a. balance transfer offer for 18 months and 1% p.a. for up to 12 months on purchases.
1% p.a. for 12 months (reverts to 13.24% p.a.) 0% p.a. for 18 months $55 p.a. Go to site More info
Virgin Australia Velocity Flyer Card - 0% Interest Offer
Earn Velocity Rewards and access an interest-free offer on purchases and balance transfers.
0% p.a. for 12 months (reverts to 20.74% p.a.) 0% p.a. for 6 months $129 p.a. Go to site More info
Bank of Melbourne Vertigo Platinum
A platinum card with a low balance transfer offer of 0% p.a. interest for 18 months and 1% p.a. for 12 months on purchases combined with complimentary insurance covers.
1% p.a. for 12 months (reverts to 12.74% p.a.) 0% p.a. for 18 months $99 p.a. Go to site More info
BankSA Vertigo Visa
A low interest rate card with a low annual fee, a long term balance transfer offer of 0% p.a. for 18 months and an introductory offer of 1% p.a. for 12 months on purchases.
1% p.a. for 12 months (reverts to 13.24% p.a.) 0% p.a. for 18 months $55 p.a. Go to site More info
BankSA Vertigo Platinum
Enjoy 0% balance transfer rate for 18 months and 1% purchase rate for 12 months if you apply and are approved by 4 January 2017.
1% p.a. for 12 months (reverts to 12.74% p.a.) 0% p.a. for 18 months $99 p.a. Go to site More info

What is a zero percent credit card?

There are three types of zero percent credit card. Credit cards that do not charge any interest when you transfer a balance to the account, credit cards that let you make purchases without paying any interest, and credit cards that offer both zero percent on purchases and zero percent on balance transfers.

Back to top

How do zero percent credit cards work?

Apply for a zero percent credit card and use the account to consolidate and get above the existing credit card debt, or use these accounts to make interest-free purchases during the introductory period. Some accounts even offer zero percent, or interest-free terms, on purchases and balance transfers.

There is no interest charged during the introductory period. You only have to pay back the cost of the purchases or the balance transfer amount. You’re still required to make the minimum monthly repayment each statement cycle, you need to keep paying this to stop your account going into default and to continue to receive interest-free terms.

  • The revert rate

    The interest-free terms do not last for ever. At the end the introductory period, the interest rate charged on any remaining, unpaid balance from the promotional period will be charged at a much higher rate — either the cash advance or purchase rates of interest depending on the account.

  • Order of repayments

    If you apply for a credit card that offers interest-free on purchases and balance transfers, the interest-free promotion that is set to expire first will be repaid first. Generally, the credit card promotion that has the highest interest rate will be repaid first; however, if a credit card has multiple interest-free promotions active on the account at the same time, repayments are applied to the promotion which is set to expire first.

Back to top

How to compare zero percent credit cards

The following points should be in the front of your mind when you’re looking at comparing zero percent credit cards:

  • Promotional period length. This is pretty straight forward. How long do you want your balance transfer or purchase rate interest-free terms for? Different cards have different offers with varying interest-free promotional terms. You can use the table headings in the comparison table (above) to arrange the cards by their promotional length.
  • The revert rate. This is the interest rate that will be charged on purchases you’ve charged to the account following the introductory period. For zero percent balance transfer credit cards, the revert rate is charged on anything you transfer to the credit card and don’t pay back within the balance transfer introductory period. Some cards will revert their promotional (introductory) rate to the purchase or cash advance rates of interest; while some issuers have a standard ongoing rate of interest, which is applied following the expiration of the promotional period.
  • The annual fee. The annual fee varies greatly between credit cards. Cards with premium features generally have an annual fee to match. Compare credit cards by their annual fee using our comparison table above. Click the ‘annual fee’ table heading to arrange the cards by their annual fee. Paying too much for a credit card can may negate any savings you may have made through the interest-free promotion.
  • Rewards and other perks. Credit cards can also come with additional value adding features, like a rewards program or complementary insurance. Although not the main consideration of a zero percent credit card, these perks may sway your decision from one card to another.

Things to consider before applying

The main aim of these cards is to enable consumers to better manage their credit card debts. To evade the problems associated with these cards you should have self control with your spending and know that anything you do purchase with the card you will have to repay. If you use your continue to use your card or fail to pay back your balance in the introductory period you will incur interest at the revert rate.

Back to top

Frequently asked questions about zero percent credit cards

What interest rate are you charged if you make purchase during the 0% balance transfer?

If you take out a balance transfer credit card, the 0% interest-only applies to the balance you bring over under the balance transfer promotion. Any purchases you make using the card will incur the applicable ongoing interest rate for purchases.

What happens in the case of delayed payment?

During the offer period, no interest is charged to the balance. If you fail to pay back your balance during this period you will be charged the revert rate after the period ends. If you miss a regular scheduled repayment, you will be charged the standard late payment fee set by the issuer.

Some issuers even have condition that states that your account needs to be in good standing to continue to receive the interest-free terms.

Is there any need of making card repayments during the 0% balance transfer and purchase period?

Yes. Monthly repayments should be made every month to stop the account from going into default.
Was this content helpful to you? No  Yes

Related Posts

American Express Essential Credit Card
American Express Essential Credit Card

Interest rate

14.99

Annual fee

0
ME Bank frank Credit Card
ME Bank frank Credit Card

Interest rate

11.99

Annual fee

0
HSBC Platinum Credit Card
HSBC Platinum Credit Card

Interest rate

19.99

Annual fee

149

Ask a Question

You are about to post a question on finder.com.au

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At finder.com.au we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the finder.com.au privacy policy, receive follow up emails related to finder.com.au and to create a user account where further replies to your questions will be sent.

Ask a question
feedback