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Purchase Rate

0.00%

for 7 months then 19.74%

Annual Fee

$0

for 12 months then $99

Interest Free Days

55

More details

Purchase Rate

0.00%

for 7 months then 13.99%

Annual Fee

$0

for 12 months then $55

Interest Free Days

55

More details

Purchase Rate

0.00%

for 15 months then 12.99%

Annual Fee

$99

Interest Free Days

55

More details

Purchase Rate

0.00%

for 6 months then 12.54%

Annual Fee

$0

Interest Free Days

55

More details

Purchase Rate

0.00%

for 6 months then 9.59%

Annual Fee

$99

Interest Free Days

55

More details

Purchase Rate

0.00%

for 15 months then 12.99%

Annual Fee

$49

for 12 months then $99

Interest Free Days

55

More details

Purchase Rate

0.00%

for 17 months then 20.24%

Annual Fee

$0

for 12 months then $87

Interest Free Days

55

More details

Purchase Rate

0.00%

for 7 months then 19.74%

Annual Fee

$0

for 12 months then $99

Interest Free Days

55

More details

Purchase Rate

0.00%

for 7 months then 13.99%

Annual Fee

$0

for 12 months then $55

Interest Free Days

55

More details

Purchase Rate

0.00%

for 7 months then 19.74%

Annual Fee

$0

for 12 months then $99

Interest Free Days

55

More details

Purchase Rate

0.00%

for 7 months then 13.99%

Annual Fee

$0

for 12 months then $55

Interest Free Days

55

More details

Purchase Rate

0.00%

for 15 months then 10.99%

Annual Fee

$49

Interest Free Days

55

More details

Purchase Rate

0.00%

for 15 months then 10.99%

Annual Fee

$69

Interest Free Days

55

More details

Purchase Rate

0.00%

for 15 months then 20.09%

Annual Fee

$0

for 12 months then $30

Interest Free Days

55

More details

Purchase Rate

0.00%

for 15 months then 13.24%

Annual Fee

$89

Interest Free Days

55

More details

Purchase Rate

0.00%

for 15 months then 19.74%

Annual Fee

$0

for 12 months then $89

Interest Free Days

55

More details

Learn more about credit cards

Many credit card companies offer new cardholders a 0 per cent interest rate on purchases for a defined period.

Being able to take advantage of spending with no interest is an attractive incentive for many new customers.

What is a credit card with 0% on new purchases?

A 0 per cent purchase credit card typically charges zero interest on purchases during an introductory promotional period.

The length of the 0 per cent interest period varies, but usually ranges between three and 12 months depending on the provider and card.

With these types of cards, all eligible transactions made during the promotional period do not accrue any interest. Any remaining amount that hasn't been paid off by the end of the promotional offer will start to collect interest.

It’s also important to note that not all transactions on this type of credit card will be eligible for 0 per cent percent interest. For example, your provider might stipulate that cash advances are not included. In this case, any cash transactions made during the promotional period would be subject to the standard interest rate.

If you're considering a 0 per cent purchase credit card, don’t forget that the interest-free period is temporary. Paying off your balance before the end of the promotional period means you don’t pay any interest.

Pros and cons of 0% purchase credit cards

When weighing up whether or not to choose a 0 per cent purchase credit card, consider some of the pros and cons:

Pros

  • No interest for a set period – The most obvious benefit is that you have the opportunity to make purchases during the introductory period without incurring any interest, provided you pay back the balance before the period ends.
  • Good for large purchases – If you want to make a sizeable purchase but need some time to pay it off, a 0 per cent purchase credit card can help by allowing you to space out repayments.
  • Useful for balance transfers – Certain providers offer 0 per cent interest on balance transfers for a defined period, giving you a window of time when interest won’t accrue on your balance.

Cons 

  • Benefits are temporary – The 0 per cent interest only lasts for the duration of the introductory period. Once it ends, the card will revert to the standard interest rate, which could be high.
  • Balance transfer fees may apply – Even if your provider offers 0 per cent interest on balance transfers, they may still charge you a balance transfer fee.
  • Limitations apply – Not all transactions are eligible for 0 per cent interest, and you could be penalised for late payments.

Types of 0% purchase credit cards

Most 0 per cent purchase credit cards fall into one of the following categories:

  • Standard 0 per cent purchases – This includes a 0 per cent interest rate on purchases over an introductory period. The interest rate becomes standard after the period ends.
  • 0 per cent purchases with balance transfers – Includes no interest payable on purchases as well as balance transfers during the promotional period. With this type of card, you can transfer and repay your existing credit card debt interest-free while making purchases with no interest.
  • 0 per cent purchases with frequent flyer points – In addition to the interest-free period, you can earn frequent flyer miles for certain airlines on purchases made for the entire life of the card.
  • 0 per cent purchases with other rewards – In addition to the interest-free period, you can earn rewards such as cashback and concierge services for the life of the card. 

Factors to consider when choosing a credit card with 0% on new purchases

Choosing the right credit card to suit your requirements means doing some research to make sure you know what you’re signing up for. RateCity’s credit card comparison tool can be used to compare the following features: 

  • Length of the interest-free period – The 0 per cent interest period usually ranges between three and 12 months, so it’s important to choose a card with an introductory period that makes sense for you. Calculate how much you plan to spend and whether you can repay that amount in full before the standard interest rate takes effect.
  • Standard interest rate – Once the introductory period ends, you’ll pay the card’s standard interest rate on any remaining balance and future purchases. If you want to keep using the card after the promotional period, you may want to look for one with a lower ongoing interest rate.
  • Annual fee – Most cards charge an annual fee, so consider if the interest-free benefits and other perks of the card are worth this cost.
  • Eligible transactions – Some types of transactions, such as cash advances, may not be eligible for 0 per cent interest. Read over the fine print to see what’s excluded from the promotion.
  • Additional benefits – Depending on your needs, you may want to choose a card that offers other benefits such as complimentary insurance or frequent flyer points. This way, you can continue to get the most out of your card after the promotional period is over.

^The best credit card for you may not be the best credit card for somebody else. Before selecting a credit card, compare the interest rates, fees and features of different options to see which ones may suit your personal financial goals. For assistance, consider contacting a qualified financial adviser.

Frequently asked questions

How is credit card interest charged?

Your credit card will be charged interest when you don’t pay off the balance on your credit card. Your card provider or bank charges you the individual interest rate that is associated with your card, which is usually between 10 and 20 per cent. 

The interest will be added onto your bill each month or billing period if you don’t pay off the balance, unless you are in an interest-free period.

You will be charged interest on anything that hasn’t been paid for inside the interest-free period. Usually you will receive a notice on your bill or statement saying you will be charged interest so you have some form of notice before you’re charged.

How does credit card interest work?

Generally, when we talk about credit card interest, we mean the purchase interest rate, which is the interest charged on purchases you make with your credit card.

If you don’t pay your full balance each month (or even if you pay the minimum amount), you are charged interest on all the outstanding transactions and the remaining balance. However, interest is also charged on cash advances, balance transfers, special rate offers and, in some cases, even the fees charged by the company.

The interest rate can vary, depending on the credit card. Some have an interest-free period, otherwise you start paying interest from the day you make a purchase or from the day your monthly statement is issued. So avoid interest by paying the full amount promptly.

How to calculate credit card interest

Credit card interest can quickly turn a manageable balance into unmovable debt. So being able to understand how interest rates translate into dollars is an important skill to acquire.

The common mistake people make is focusing on the credit card’s annual percentage rate (APR), which often sits between 15 and 20 per cent. While the APR does provide a rough idea of how much interest you’ll pay, it’s not entirely accurate.

This is because you actually accrue interest on your balance daily, not annually. So, you need to work out your daily periodic rate (DPR). To do this, divide your card’s APR by the number of days in a year (e.g. 16.9 per cent divided by 365, or 0.05 per cent). You can then apply this figure to the daily balance on your credit card.

What is a balance transfer credit card?

A balance transfer credit card lets you transfer your debt balance from one credit card to another. A balance transfer credit card generally has a 0 per cent interest rate for a set period of time. When you roll your debt balance over to a new credit card, you’ll be able to take advantage of the interest-free period to pay your credit card debt off faster without accruing additional interest charges. If your application is approved, the provider will pay out your old credit card and transfer your debt balance over to the new card. 

How to get a free credit card

There's no such thing as a free lunch. All credit cards come with associated costs when used to make purchases, even if it’s simply the cost of making repayments.

However, many lenders offer incentives for customers such as a $0 annual fee or 0 per cent interest on purchases during an introductory period. Additionally, paying off your balance in full during an interest-free period means you could only have to pay back the cost of purchases without interest. You could also be eligible for additional rewards such as cashback during that time, saving you more money.

Current Interest Rate

This is the current interest rate on your existing credit card.

How do you use credit cards?

A credit card can be an easy way to make purchases online, in person or over the phone. When used properly, a credit card can even help you manage your cash flow. But before applying for a credit card, it’s good to know how they work. A credit card is essentially a personal line of credit which lets you buy things and pay for them later. As a card holder, you’ll be given a credit limit and (potentially) charged interest on the money the bank lends you. At the end of each billing period, the bank will send you a statement which shows your outstanding balance and the minimum amount you need to pay back. If you don’t pay back the full balance amount, the bank will begin charging you interest.

How do you use a credit card?

Credit cards are a quick and convenient way to pay for items in store, online or over the phone. You can use a credit card as a cashless way to pay for goods or services, both locally and overseas. You can also use a credit card to make a cash advance, which gives you the flexibility to withdraw cash from your credit card account. Because a credit card uses the bank’s funds instead of your own, you will be charged interest on the money you spend – unless you pay off the entire debt within the interest-free period. If you pay the minimum monthly repayment, you will be charged interest. There are many different credit card options on the market, all offering different interest rates and reward options.

Which credit card has the highest annual percentage rate?

The credit card market changes all the time, so the credit card with the highest annual percentage rate is also liable to change.

Keep in mind that credit card interest rates are expressed as a yearly rate, or annual percentage rate (APR). A low APR is generally good but also consider:

  • There can be different APR's for each feature of the card (e.g. purchases may have an APR of 14 per cent, while cash advances on same card could have an APR of 17 per cent.
  • Credit cards with a variable rate can change throughout the year, affecting your APR, so check the full details.
  • If you pay your balance in full every month, having the lowest APR is not as important as the other fees associated with the card. However, if you carry a balance from month to month, then you want the lowest APR possible.

Should I get a credit card?

Once you've compared credit card interest rates and deals and found the right card for you, the actual process of getting a credit card is quite straightforward. You can apply for a credit card online, over the phone or in person at a bank branch. 

How to pay a credit card from another bank

Paying or transferring debt from one lender to the other is called a balance transfer. This involves transferring part or all of the debt from a credit card with one lender to a credit card with another. As part of the process, your new lender will pay out the old lender, so that you now owe the same amount of money but to a new institution.

Many credit card providers offer an interest-free period on balance transfers to help new applicants better handle their debt. During this period, cardholders are not required to pay interest on the debt they brought over from the other card. This can be a great opportunity for consumers to pay off credit card debt with no interest. There are often fees associated with balance transfers; normally, these are a percentage of the amount transferred.

So make sure you read the terms and conditions of the card before transferring any debt across.

Can a pensioner get a credit card?

It is possible to get a credit card as a pensioner. There are some factors to keep in mind, including:

  • Annual income. Look for credit cards with minimum annual income requirements you can meet. 
  • Annual fees. If high fees are a concern for you, opt for a card with a low or $0 annual fee. 
  • Interest rate. Make sure you won’t have any nasty surprises on your credit card bill. Compare cards with a low interest rates to minimise risk.

How to get money from a credit card

You can get money from a credit card, but generally it will cost you.

Withdrawing money from a credit card is called a cash advance, as it operates more as a loan than a simple cash withdrawal. Because it is a loan, you may be charged interest on your cash advance as soon as you make the withdrawal. Interest rates are also usually much higher for cash advances than standard credit card purchases.

In addition to the interest rate, you may also be charged a cash advance fee. This could be a flat rate, or a percentage of your total cash advance. If you are considering a cash advance, make sure to add up how much it will cost you before committing.

What should you do when you lose your credit card?

Losing your credit card is a serious situation, and could land you in financial trouble. Here is a simple guide detailing what to do when you lose your credit card.

Lock you card – Contact your provider and inform them about your lost credit card. From here lock, block or cancel your card.

Keep track of transactions – Look out for unauthorised credit card transactions. Most banks protect against fraudulent transactions.

Address recurring charges – If your card is linked to recurring charges (gym membership, rent, utilities), contact those businesses.

Check credit rate – To ensure you’re not the victim of identity theft, check your credit rating a month or two after you lose your credit card.

What is the lowest monthly repayment on my credit card?

As a rule of thumb, this tends to be around 2-3 per cent of the outstanding balance. You can choose how much you want to repay each billing period as long as it is higher than this minimum required amount.

What is a credit card?

A credit card is a payment method which lets you pay for goods and services without using your own money. It’s essentially a short-term loan which lets you borrow the bank’s money to pay for things which you can pay back – potentially with interest – at a later date. Credit cards can also be used to withdraw money from an ATM, which is known as a cash advance. Because you’re borrowing money from a bank, credit cards charge you interest on the money you use (unless you repay the entire debt during the interest-free period). When you apply for a credit card, the bank gives you a credit limit which sets the maximum amount you can borrow using your card. Credit cards are one of the most popular methods of payments and can be a convenient way of paying for goods and services in store, online and all around the globe.

How do you cancel a credit card?

It’s important to cancel your old cards to avoid any additional fees. Unless you’re doing a balance transfer, you’ll need to pay the outstanding balance before you cancel your credit card. If you’ve opted for a card with reward points, make sure you redeem or transfer the points before you close your account. To avoid any bounced payments and save yourself an admin headache, redirect all your direct debits to a new card or account. Once you’ve done all the preparation, call your bank or credit card provider to get the cancellation underway. Once you receive a confirmation letter, destroy your card and make sure the numbers aren’t legible.

How do credit cards work?

Think of credit cards as a short-term loan where you use the bank’s money to buy something up front and then pay for it later. Unlike a debit card which uses your own money to pay, a credit card essentially borrows the bank’s money to fund the purchase. When you apply for a credit card, the bank assesses your income and assigns you a credit limit based on what you can afford to pay back. At the end of each billing cycle, which is usually monthly, the bank will send you a statement showing the minimum amount you have to pay back, including any interest payable on the balance.

How long does it take to get a credit card?

There are a few stages you need to go through to get a credit card; each one takes a different length of time.

Applying for the card online, over the phone or in person is the fastest step. This usually takes around 15 minutes, provided you have all of your documents handy.

After submitting your application, it usually takes between one to 10 business days for the lender to assess your eligibility. Some lenders offer instant approval, although you will need to send supporting documents before it is official.

Once your application has been approved, expect to wait between one to 14 days to receive your card in the mail. Keep in mind that delays can happen during busy periods, such as if the lender has launched a special deal.

How to make a credit card online

If you’re wondering about how to make a credit card online application, here are some steps to follow:

  • Test the market. Many credit card options are available online. Compare providers by fees, interest and perks to ensure you’re getting the best deal.
  • Complete the application. Once you’ve selected a card, head to the provider’s website and complete the online credit card application form. Forms vary by providers.
  • Provide details. Most cards require you to meet age, residency, income and credit status condition, and you need to provide details like a bank account statement to prove this.
  • Review details. Ensure the information you’ve entered is correct.