0% Purchase Credit Cards

Compare 0% purchase credit cards offering 0% interest on new purchases for 6-12 months or more.

Nilooka Dissanayake avatar
Written by   |  
Vidhu Bajaj avatar
Edited by   |  
David Boyd avatar
Verified by
Updated 28 Oct 2024   |   Rates updated regularly

Comparing of 12 credit cards with 0% p.a. on purchases

Featured
Citi Rewards Card Balance Transfer and Purchase Offer

On Citi's website

Balance transfer

15 months at 0% p.a.

Purchase rate

15 months at 0% p.a.

Interest-free days

44 days

Annual fee

$199.00 p.a. ongoing

Details

  • 0% p.a. for 15 months on purchases and balance transfers. Balance transfer reverts to cash advance rate.
  • Complimentary mobile phone insurance when you pay your monthly mobile plan bill with your Citi Rewards Credit Card . See Terms and Conditions here.
  • Earn up to 1 Citi reward point for every $1 spent.

This product is provided by National Australia Bank Limited, using certain trademarks under license from Citigroup Inc.

Pros & cons

Pros
  • 0% p.a. on balance transfers and purchases for the first 15 months.
  • No balance transfer fee.
  • Earn up to 1 Citi reward point for every $1 spent.
  • 10% off Limited Time LUX Exclusive hotel offers (up to $250 per booking) booked by 1 March 2025.
Cons
  • There is a 2% BT fee.
  • Balance transfer changes to a 22.24% p.a. cash advance rate after 15 months.
  • Fee for an additional card is $90.

Balance transfer

N/A

Purchase rate

0% p.a. ongoing

Interest-free days

30 days

Annual fee

From $383.88 p.a. ongoing

Details

  • Enjoy 30 days of interest-free credit on all purchases.
  • No fee for the first month.
  • Access generous credit limits of up to $500,000.
  • Benefit from 0% foreign transaction fees on international spending.

Pros & cons

Pros
  • Add unlimited cardholders at no extra cost.
  • Seamlessly integrate with Xero for streamlined accounting.
  • Quick and easy application process.
  • Enjoy complimentary access to airport lounges worldwide.
Cons
  • Enjoy 30 days APR-free; thereafter, a standard 2.99% fee applies to revolving balances.
NAB StraightUp Credit Card

On NAB's website

Balance transfer

N/A

Purchase rate

0% p.a. ongoing

Interest-free days

N/A

Annual fee

$0.00 p.a. ongoing

Details

  • Get the latest credit card from NAB - straightforward, affordable, and above all, interest-free!
  • No Use, No Pay. Should your NAB StraightUp credit card remain unused throughout the entire statement period, the monthly fee will be reimbursed. No unexpected charges!
  • Use your card for foreign currency transactions and get zero foreign transaction fees!
  • Consistent fixed minimum payments determined by your credit limit, providing you with assurance of monthly payment amounts.

Pros & cons

Pros
  • Charges a monthly fee based on your selected credit limit.
  • The monthly fee will be reversed if you do not have any outstanding balance or purchase.
  • No interest charges or other fees, including foreign currency fees and late payment fees.
Cons
  • No rewards program for this card.
  • No balance transfers or cash advances.

Balance transfer

N/A

Purchase rate

0% p.a. ongoing

Interest-free days

N/A

Annual fee

$0.00 p.a. ongoing

Details

  • Zero interest, zero late fees.
  • Three credit limit options: $1,000, $2,000, or $3,000.
  • Monthly fee remains straightforward: $12, $18, or $22, corresponding to your chosen credit limit.

Pros & cons

Pros
  • No interest, no late fees.
  • No foreign exchange or additional cardholder fees.
  • Cashback benefits for eligible cardholders.
Cons
  • No Awards points for this card.
  • Low credit limits.
  • No balance transfers.

Balance transfer

N/A

Purchase rate

6 months at 0% p.a.

Interest-free days

55 days

Annual fee

$131.40 p.a. ongoing

Details

  • Use the interest-free payment options at numerous stores.
  • Immediate 6 months interest-free for purchases totaling $250 and above.
  • Rather than an annual fee, Latitude Gem Visa imposes a monthly fee equating to $131.40 annually.

Pros & cons

Pros
  • 0% for 6 months on everyday purchases amounting to $250 and over.
  • The 0% on interest-free payment plans.
  • Up to 55 days interest free on everyday purchases.
Cons
  • The standard cash advance rate of 29.99% p.a.
  • 3% foreign exchange fee.
  • The late payment fee is $45.
Westpac Flex Card

On Westpac's website

Balance transfer

N/A

Purchase rate

0% p.a. ongoing

Interest-free days

N/A

Annual fee

$0.00 p.a. ongoing

Details

  • 0% interest and $0 late payment fee.
  • $10 monthly fee, or no outstanding balance, $0 fee.
  • Access to Westpac Extras and Rewards.

Pros & cons

Pros
  • No interest charges.
  • Pay no monthly fee if you do not have any outstanding balance.
  • Choose to repay monthly or twice a month, plus pay back more at any time.
  • No late payment fees.
Cons
  • Low credit limit.
  • No balance transfers or cash advances.
  • Lacks the ability to earn rewards.

Balance transfer

N/A

Purchase rate

6 months at 0% p.a.

Interest-free days

55 days

Annual fee

$131.40 p.a. ongoing

Details

  • Immediate 6 months interest-free for purchases totaling $250 and above.
  • Interest-free deals available from numerous online and in-store retailers.
  • No initial account setup fee and a maximum of 55 interest-free days.

Pros & cons

Pros
  • A monthly account service fee instead of an annual fee.
  • Enjoy Expedia and Wotif hotel discounts.
  • Get 6% off your stay with Booking.com
  • Up to 55 interest-free days.
Cons
  • High 27.49% p.a. interest rate on everyday purchases.
  • High late payment fee of $45.

NAB Low Rate Business Credit Card

On NAB's website

Balance transfer

N/A

Purchase rate

12 months at 0% p.a.

Interest-free days

55 days

Annual fee

$0.00 for 1st year

Details

  • Enjoy 12 months at 0% p.a. on purchases. Reverting to the variable purchase rate of 13.25% p.a.
  • Benefit from a low ongoing 13.25% p.a. rate on purchases and cash advances.
  • No annual fee for the initial year.

Pros & cons

Pros
  • The 0% special introductory interest rate offer on purchases.
  • $0 annual fee on the first year ($60 p.a. thereafter).
  • Low interest rate on cash advances and purchases.
  • Up to 55 days on business purchases.
Cons
  • No travel insurance.
  • Doesn't earn rewards points.
Virgin Money No Annual Fee Credit Card

On Virgin Money's website

Balance transfer

N/A

Purchase rate

6 months at 0% p.a.

Interest-free days

55 days

Annual fee

$0.00 p.a. ongoing

Details

  • $0 annual fee for the lifetime of the card.
  • 0% p.a. for 6 months on purchases (reverts to 19.99% p.a.).
  • Up to 55 interest free days.

Pros & cons

Pros
  • No annual fee ever.
  • 0% p.a. interest rate for up to 6 months on purchases.
  • Up to 4 additional cards, also with $0 annual fee.
Cons
  • The revert interest rate for purchases are relatively high.

Balance transfer

9 months at 0% p.a.

Purchase rate

9 months at 0% p.a.

Interest-free days

44 days

Annual fee

$60.00 p.a. ongoing

Details

  • Benefit from a 0% p.a. rate for 9 months on Balance Transfers, accompanied by no balance transfer fee (reverting to cash advance fee thereafter).
  • Take advantage of the 0% p.a. on purchases 9 months. Reverts to 20.74% p.a.
  • Avail of the guaranteed pricing scheme for your purchases.

Pros & cons

Pros
  • Earn rewards points on every dollar spent with no cap.
  • 0% on balance transfers and purchases for 9 months.
  • No balance transfer fees.
Cons
  • Interest-free period is relatively short, at 44 days.
  • $15 charge per additional card.

Balance transfer

5 months at 4.99% p.a.

Purchase rate

5 months at 4.99% p.a.

Interest-free days

55 days

Annual fee

$0.00 p.a. ongoing

Details

  • Purchase and balance transfer offer of 4.99% p.a. for 5 months.
  • Benefit from low ongoing interest rates on purchases, balance transfers, and cash advances.
  • Enjoy a $0 annual fee with up to 55 interest-free days on purchases.

Pros & cons

Pros
  • Special 5-month introductory rate on purchases and balance transfers.
  • The low ongoing rate on purchases and cash advances.
  • No annual fee for life.
  • Minimum credit limit of $500 to help keep your spending within control.
Cons
  • No rewards program on this card.
  • The card does not offer complimentary insurance cover.

Balance transfer

6 months at 0% p.a.

Purchase rate

6 months at 0% p.a.

Interest-free days

55 days

Annual fee

$0.00 p.a. ongoing

Details

  • No annual fee.
  • 0% introductory rate on purchases, balance transfers, and cash advances.
  • Enjoy a competitive 11.49% p.a. interest rate.
  • Benefit from up to 55 days interest-free on purchases.

Pros & cons

Pros
  • No annual fee.
  • Competitive interest rates.
  • Conveniently pay with Apple Pay, Google Pay, Samsung Pay, Fitbit Pay, and Garmin Pay.
Cons
  • No rewards points program.
  • No sign up bonus.

Some credit providers offer 0% interest on credit cards, often for a limited period. However, lenders are unlikely to offer debt without costs, which is why it’s important to consider any associated fees and other terms and conditions carefully. This helps ensure you're getting a deal that truly suits your needs.

What is a 0% purchase credit card?

0% purchase credit cards offer a specified period during which you will not be charged any interest on your purchases, provided you meet the minimum payment requirements. This interest-free period usually ranges from 6-12 months, but can be as long as 24 months.

Why Choose a 0% Purchase Credit Card?

If you're planning to make significant purchases, a 0% interest credit card can be beneficial, as it allows you to spread the cost of your spending without the added burden of interest charges. However, it's important to plan ahead for how you'll pay off the balance before the interest-free period ends, as standard interest rates can be high.

David Boyd of Credit Card Compare

David Boyd, co-founder of Credit Card Compare, explains, "When used correctly, introductory 0% purchase rates can save money in the short-term on credit card interest for eligible purchases. Weigh up how long the interest-free period lasts, and don't forget to consider what the rate reverts to when the introductory period ends."

How 0% purchase credit cards work

When you use a 0% purchase credit card for your transactions, the card issuer will not charge interest on the purchases you make within the promotional 0% period. This is regardless of whether you pay off your balance in full. However, just like other credit cards, you’ll still need to pay the minimum repayment amount each month, even during the promotional 0% period.

Watch closely and clear the balance before the end of the promotional period to avoid accruing substantial interest charges. After the promotional period expires, any remaining balance will be subject to the card's standard variable interest rate.

What are the best interest-free credit cards in Australia?

There are different types of interest-free credit cards in Australia, and the right one for you depends on your specific needs and financial situation. Typically, these cards offer a 0% purchase ratefor a promotional period, during which no interest is charged on your purchases. However, once the promotional period ends, the revert rate, which refers to the standard interest rate applied to new purchases or any outstanding balance, can be significantly higher.

In addition to cards with a limited 0% purchase period, you may also come across lifetime interest-free credit cards, such as the NAB StraightUp Card.

While a lifetime interest-free credit card doesn’t charge you interest, it’s unlikely to be free of cost. Such cards typically charge fixed ongoing monthly or annual fees, which can add up over time. It’s important to compare your options, including low-rate credit cards with low or no annual fees, to find the most cost-effective solution for you.

Another type of 0% interest card is a 0% balance transfer credit card. These cards allow you to transfer existing debt from another credit card and avoid interest charges for a set period, which can range from 6 months to a couple of years.

After this period, the card typically reverts to a higher interest rate, so it’s important to pay off the balance before the promotional period ends. Additionally, this type of card is usually meant for debt reduction, and you may be charged interest if you use the card for making new purchases.

To find the best interest-free card for yourself, start by thinking about the type of card you want. In general, you may want to look for the longest possible interest-free period, a low revert rate if you choose a card with an introductory 0% purchase rate, and low (or no) annual or monthly fees. Note that 0% credit cards don’t often offer rewards, but some might—so make sure to review what you want from a card and compare the features and costs to make an informed choice.

What to know before applying for a 0% purchase credit card

  • Promotional period length: Consider the duration of the 0% interest period. Some cards may offer up to 24 months interest-free on purchases
  • Interest rates: Be aware of the standard variable interest rate that applies or reverts back to at the end of the promotional period.
  • Minimum repayment: Ensure you make at least the minimum repayment each month to avoid penalties.
  • Annual fees: Check for any annual fees associated with the credit card.
  • Additional perks: Some issuers combine an interest-free period on new spending with rewards like frequent flyer points.
  • Eligibility criteria: Specific eligibility requirements apply to cards individually. Check that your income is high enough, that your credit score is good, and that there are no recent missed payments or rejections for credit.

How to benefit the most from 0% purchase credit cards

  • Set a repayment plan: Plan your repayments in such a way to clear the balance before the end of the promotional period. This can help you avoid high-interest charges.
  • Monitor your spending: Keep track of your purchases and payments to stay within your budget and avoid unnecessary debt.

By considering these factors and using the card responsibly, you can take advantage of the 0% interest on purchases while avoiding penalties or additional charges.

Can I be charged interest on a credit card with a 0% interest rate?

Yes, you can still be charged interest on an interest-free credit card under certain conditions, such as:

Once the promotional period ends

Many interest-free credit cards offer a 0% interest rate for an introductory period, such as 6, 12, or even up to 24 months. Once this period ends, any remaining balance is charged at the card’s revert rate, which is often higher than average.

Missed or late payments

You are required to make the minimum repayment on an interest-free credit card each month, even during the promotional period. Failure to pay the minimum balance on your card could lead to late payment fees, and other penalties, depending on your card's terms and conditions.

Cash advances

Most interest-free credit cards exclude cash advances from the interest-free offer. If you use your credit card to withdraw cash, you're like to incur interest immediately, often at a higher rate. Some card providers may also charge an additional fee for cash advances.

Making new purchases on a balance transfer credit card

The low or 0% interest rate on a balance transfer credit card generally applies to the transferred balance. This means any new purchases on the card are likely to incur interest, unless the card also offers 0% interest on purchases.

It’s important to carefully read the card’s terms and conditions to understand what situations could lead to interest charges, even during an interest-free offer.

Help choosing a 0% purchase credit card

Find out how 0% introductory offers work and how to maximise their benefits.

  • FAQs

  • Pros & cons

  • Alternatives

  • Why trust us

What happens when the period of 0% interest on purchases ends?

Once the interest free period ends, interest begins to accrue on any remaining balance according to the card’s standard purchase rate. Make sure you know this rate before you apply for the card. To avoid paying huge interest amounts, try to pay off your outstanding balances before the zero interest period ends. If that seems impossible, try to reduce your outstanding balance as much as possible.

Can you use 0% purchase credit cards for balance transfers?

While 0% purchase credit cards primarily focus on interest-free purchases, some cards may allow balance transfers with promotional 0% interest rates for a specified period.

What happens if you don't clear the balance before the end of the promotional period?

If you fail to clear the balance before the end of the interest free promotional period on a 0% purchase credit card, your remaining balance will start accruing interest at the card's standard variable rate. You may end up getting slapped with a substantial interest charge, depending on your remaining balance. This can have a negative effect on your overall financial situation.

This is a good reason why you should also compare the standard variable rates of credit cards when comparing 0% purchase credit cards.

Is it possible to switch from a 0% purchase credit card to a new card after the promotional period ends?

If you wish to switch to a new credit card after the promotional period on your 0% purchase credit card ends, you can explore balance transfer options or consider applying for a new card with another promotional offer. It's crucial to compare different cards and their terms to make an informed decision.

Some issuers limit the 0% purchase credit card offers to new customers and existing customers are not eligible.

Are 0% purchase credit cards suitable for everyday expenses?

While 0% purchase credit cards can be used for everyday expenses, they are more appropriate for planned high value purchases and expenses. Where balance transfers are also on offer, they are a great tool for earning a respite on high interest in order to focus on paying off or reducing card debt.

If you plan to use a 0% purchase credit card for everyday expenses, make sure you know when the zero interest period ends, and to what standard interest rate it will revert to, for future purchases and ongoing outstanding balances. Being aware and monitoring your spending habits along with effective budgeting can help you make the most of your credit card.

If you only need a card for everyday purchases, choose cards that offer lower standard rates of interest and come with special offers from your favourite merchants and include cash backs and gift vouchers.

What are the risks associated with using 0% purchase credit cards?

Some risks of using 0% purchase credit cards include:

  • Failing to pay off the balance in full before the end of the interest free promotional period
  • Having to pay high-interest charges once interest rate reverts to standard purchase rate
  • Negative impact on your credit score through missed payments
  • Irresponsible card use can result in accumulating huge credit card debt

Before taking on any new credit card offers, it is important to understand these risks so you can manage your card usage with care.

Pros

Purchasing power

Provided you have a repayment plan in place, a card with an introductory interest-free offer can be used strategically to spread the cost of a large purchase over time.

Financial flexibility

The introductory period offers an interest-free window, allowing you to allocate funds to repaying the balance and freeing up cash that would otherwise go to interest.

Rewards and benefits

Apart from the obvious benefit of saving interest during the introductory period, it's not unusual for these cards come with additional perks such as earning rewards or travel benefits.

Cons

Potential to overspend

Not having to pay interest for the introductory period can encourage spending, leading to a debt that might be challenging to repay once the introductory offer ends.

Reliance on interest-free debt

Relying on the interest-free feature can potentially foster an unhealthy relationship with debt, such as habitual borrowing without the immediate capacity to repay, affecting long-term financial wellness.

Personal loan

Fixed-term loans with a set interest rate, useful for larger purchases or consolidating debt.

Buy Now, Pay Later

Services like Afterpay or Zip Pay allow for installment payments, often interest-free for short terms.

Methodology

We considered the following attributes and associated metadata when ranking our comparison of credit cards with a 0% purchase introductory offer.

  • Annual fee initial year: The card's annual fee in the first year. The lower it is, the better.
  • Annual fee ongoing: The annual fee charged each year after the first year. Lower is better.
  • Apple Pay enabled: Whether the card can be added to Apple Pay for contactless payments. Being able to is considered beneficial.
  • Balance transfer offer: If an introductory balance transfer offer is available, what the interest rate is, how long the introductory offer lasts, and what the balance transfer fee is (if there is one). A lower rate for longer is considered better.
  • Balance transfer from personal loan: If balances from personal loans can be transferred to the card in addition to regular credit card balance transfers. Being able to do so provides more flexibility.
  • Balance transfer limit: The maximum amount that can be transferred to the card. Higher is better.
  • Card type: Whether the card is an American Express, Mastercard, Visa, etc. since this can affect acceptance.
  • Foreign exchange fee: Surcharges converted currency transactions attract when made overseas or while shopping online from an overseas store. The lower the better.
  • Interest-free period: How many interest-free days are on offer from statement close, if the balance is paid in full. More is better.
  • Introductory purchase rate: The interest rate on purchases for a set period and how long it lasts before reverting to the ongoing rate on purchases.
  • Late payment fee: How much will be charged if the minimum repayment is not made by the due date each month. Lower the late payment fee, the better it is.
  • Maximum credit limit: How much credit can be extended on the card.
  • Minimum credit limit: Lowest credit limit amount that may be offered, even to applicants with excellent scores.
  • Minimum income required: How much income is required to be eligible. A lower amount makes the card accessible to people with relatively low monthly incomes.
  • Purchase rate ongoing: The interest rate charged on purchases after any introductory offer period ends. Lower is better.
  • Rewards program: Whether the card earns points, cashback, etc. and details around the linked rewards program, redemption options, etc.
  • Samsung Pay enabled: If the card can be added to Samsung Pay digital wallet for contactless payments. Being able to is considered beneficial.
  • Sign-up bonus: Whether the card offers a welcome bonus of points, cashback, etc. and the minimum criteria to trigger it.

Our rankings may not reflect what matters most to you. Be sure to compare key rates, fees, and features against your own financial priorities before deciding.

Sources

  1. Credit card debt-free repayment calculator — Credit Card Compare
  2. Credit card debt statistics – Credit Card Compare
  3. Credit card minimum repayment only calculator — Credit Card Compare
  4. Managing debt – Moneysmart

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