No Interest Credit Cards

No interest credit cards come with zero interest — none, zip, nada — and instead have a simple monthly fee.

By Verified by David Boyd   |   Updated 9 Oct 2024

As seen on

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Comparing of 4 no interest credit cards

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

Highlights

  • 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!
  • Utilize your card for foreign currency transactions and relish in zero foreign transaction fees!
  • Consistent fixed minimum payments determined by your credit limit, providing you with assurance of monthly payment amounts.

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.
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

Highlights

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

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.
CommBank Neo

Balance transfer

N/A

Purchase rate

0% p.a. ongoing

Interest-free days

N/A

Annual fee

$0.00 p.a. ongoing

Highlights

  • 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

  • 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.
Community First Bank n0w Credit Card

On Community First Bank's website

Balance transfer

N/A

Purchase rate

0% p.a. ongoing

Interest-free days

N/A

Annual fee

$0.00 p.a. ongoing

Highlights

  • There is no interest charged on purchases or cash advances (though a cash advance fee is applicable).
  • You have the option to select from three credit limits, each associated with a distinct monthly fee.
  • The minimum repayment required is either 2.5% of your statement's closing balance or $20, whichever amount is higher.

Pros

  • No interest on purchases or cash advances.
  • Low monthly fee starting from $9.
  • No annual fee or late payment fee.

Cons

  • Repayments aren't in fixed instalments like with Afterpay.
  • There's a $3 cash advance fee (but no interest).
  • The maximum credit limit isn't very high, but some will see the benefit in that.

What is a no interest credit card?

No interest credit cards emerged in response to the growing popularity of buy now, pay later services like Afterpay and Zip. Thesecredit cards occupy a space between traditional credit cards and buy now, pay later offerings.

A no interest credit card combines the convenience of a credit card with the interest and fee structure typically associated with buy now, pay later services. Here are the key features:

  • Zero interest on purchases: As the name suggests, no interest is charged on purchases made with the card. If cash advances are permitted, there is usually no interest on ATM withdrawals (although a one-time cash advance fee may apply).
  • No fees, except for the monthly fee: No interest credit cards could also be called no fee credit cards, as they don't charge annual fees, late payment fees, or foreign exchange fees commonly associated with credit cards when shopping online at international stores. Instead of interest and fees, banks charge a simple, relatively low monthly account fee, which is often waived if the card hasn't been used during the statement period.
  • No additional perks: If you want to earn rewards, enjoy airport lounge access, or take advantage of other benefits often provided by credit cards, these cards may not be the best fit for you.

No interest credit cards vs. buy now, pay later

Despite the similarities between no interest credit cards and buy now, pay later services, there are some notable differences to consider. No interest credit cards are not an exact substitute for the buy now, pay later service you may be currently using.

Similarities

  • Interest-free purchases. Both no interest credit cards and buy now, pay later services generally offer interest-free purchases.
  • Minimal fees. Both payment options typically have no late fees or annual fees.

Differences

  • Repayment structure. Buy now, pay later services like Afterpay often have a predetermined instalment plan for repaying purchases. No interest credit cards do not have this structure, and it is possible to carry a balance between months without incurring interest charges. Note that some cards now offer the ability to set up an instalment plan for recent purchases with fixed repayments.

No interest credit cards vs. traditional credit cards

No interest credit cards differ from traditional credit cards in terms of their interest and fee structures. Here's a comparison:

Similarities

  • Balance carry-over. As with a traditional credit card, any outstanding balance on a no interest credit card will carry over to the next billing cycle.
  • Credit limits. No interest credit cards have credit limits, although they are typically lower compared to most other types of credit cards.

Differences

  • No interest on cash advances. While some banks have blocked cash advances on their no interest credit cards, those that allow them do not charge interest on cash advances. Nearly all traditional credit cards charge interest on cash advances.
  • No annual fee. Although some traditional credit cards have no annual fee, most do charge one. No interest credit cards do not have annual fees.
  • No late payment or foreign exchange fees. While some traditional credit cards may waive foreign exchange fees, most charge a fee for late payments. No interest credit cards do not have these fees.

Help choosing a no interest credit card

Learn more about the savings possible with no interest credit cards.

  • FAQs

  • Pros & cons

When can you justify paying a credit card's annual fee?

For example:

  • Some cards offer sign-up bonuses that make it worthwhile to pay the annual fee on them.
  • When the rewards that you may earn on everyday spending far exceed the annual fee, then too you can justify footing the annual fee.
  • When a card has ongoing travel perks that are worth a lot more than the value of the annual fee.

Why doesn't every credit card have an annual fee?

Credit cards with no rewards, benefits, or additional features are the type of credit card most likely to have no annual fee. For cards like these, banks make their money from fees such as the interchange fee and interest.

Nearly every credit that earns rewards points comes with an annual fee, which is a contribution towards covering the cost of the benefits they tend to come with such as travel insurance and lounge access.

Pros

Financial savings

The standout advantage of no annual fee credit cards is eliminating the yearly charge, offering potential savings across the card's lifespan. This is particularly appealing for those seeking to minimize their financial commitments.

Convenience for occasional use

These cards are ideal for sporadic use, such as emergency expenses, since they incur no costs when not used. This makes them a cost-effective choice for keeping as a backup without the worry of annual fees.

Introductory benefits

Select no annual fee cards feature enticing introductory offers, including bonus points, 0% interest on balance transfers, and other perks, making them competitive without an ongoing fee.

Cons

Elevated interest charges

Typically, cards without annual fees have higher interest rates on purchases, which could increase the cost for users who tend to carry a balance month to month.

Limited extras

Compared to their fee-bearing counterparts, these cards often offer fewer benefits and rewards, making them less attractive to those seeking additional perks from their credit card.

Conditional fee waiver

It's important to note that the $0 annual fee might only apply for an introductory period on some cards. Users should know the standard annual fee and its commencement date to avoid unexpected charges.