Find and compare 55 interest free day credit cards

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Purchase Rate

12.49%

Annual Fee

$0

for 12 months then $58

Max Free Days

55

$20

More details

Purchase Rate

0.00%

for 17 months then 20.24%

Annual Fee

$0

for 12 months then $87

Max Free Days

55

$20

More details

Purchase Rate

20.74%

Annual Fee

$64

for 12 months then $129

Max Free Days

55

$30

More details

Purchase Rate

20.24%

Annual Fee

$80

Max Free Days

55

$20

More details

Purchase Rate

20.24%

Annual Fee

$375

Max Free Days

55

$20

More details

Purchase Rate

20.24%

Annual Fee

$95

Max Free Days

55

$20

More details

Purchase Rate

20.24%

Annual Fee

$30

Max Free Days

55

$20

More details

Purchase Rate

20.24%

Annual Fee

$295

Max Free Days

55

$20

More details

Purchase Rate

20.24%

Annual Fee

$0

for 12 months then $30

Max Free Days

55

$20

More details

Purchase Rate

16.99%

Annual Fee

$125

Max Free Days

55

$20

More details

Purchase Rate

20.24%

Annual Fee

$425

Max Free Days

55

$20

More details

Purchase Rate

20.24%

Annual Fee

$95

Max Free Days

55

$20

More details

Purchase Rate

19.99%

Annual Fee

$0

for 12 months then $149

Max Free Days

55

$12.5

More details

Purchase Rate

8.99%

Annual Fee

$40

Max Free Days

55

$25

More details

Purchase Rate

19.99%

Annual Fee

$0

for 12 months then $29

Max Free Days

55

More details

Purchase Rate

21.49%

Annual Fee

$99

for 12 months then $199

Max Free Days

55

$30

More details

Purchase Rate

3.99%

for 6 months then 8.99%

Annual Fee

$45

Max Free Days

55

$20

More details

Purchase Rate

21.49%

Annual Fee

$49

for 12 months then $149

Max Free Days

55

$30

More details

Purchase Rate

19.99%

Annual Fee

$99

Max Free Days

55

$30

More details

Purchase Rate

19.99%

Annual Fee

$99

Max Free Days

55

$30

More details

Purchase Rate

19.99%

Annual Fee

$0

Max Free Days

55

$30

More details

Purchase Rate

19.99%

Annual Fee

$58

Max Free Days

55

$30

More details

Purchase Rate

12.99%

Annual Fee

$99

Max Free Days

55

$30

More details

Purchase Rate

20.24%

Annual Fee

$249

Max Free Days

55

$20

More details

Purchase Rate

11.95%

Annual Fee

$0

Max Free Days

55

$20

More details

Purchase Rate

20.24%

Annual Fee

$99

for 12 months then $129

Max Free Days

55

$10

More details

Purchase Rate

12.99%

Annual Fee

$49

Max Free Days

55

$10

More details

Purchase Rate

8.99%

Annual Fee

$40

Max Free Days

55

$25

More details

Purchase Rate

8.99%

Annual Fee

$40

Max Free Days

55

$25

More details

Purchase Rate

3.99%

for 6 months then 11.74%

Annual Fee

$45

Max Free Days

55

$20

More details

Purchase Rate

11.99%

Annual Fee

$49

Max Free Days

55

$25

More details

Purchase Rate

24.99%

Annual Fee

$99

Max Free Days

55

$30

More details

Purchase Rate

11.95%

Annual Fee

$49

Max Free Days

55

$20

More details

Purchase Rate

16.99%

Annual Fee

$55

Max Free Days

55

$20

More details

Purchase Rate

20.70%

Annual Fee

$149

Max Free Days

55

$35

More details

Purchase Rate

4.99%

for 5 months then 12.95%

Annual Fee

$0

Max Free Days

55

$0

More details

Purchase Rate

20.70%

Annual Fee

$149

Max Free Days

55

$35

More details

Purchase Rate

20.74%

Annual Fee

$195

Max Free Days

55

$30

More details

Purchase Rate

14.99%

Annual Fee

$0

Max Free Days

55

$30

More details

Purchase Rate

20.74%

Annual Fee

$395

Max Free Days

55

$30

More details

Purchase Rate

20.74%

Annual Fee

$375

Max Free Days

55

$30

More details

Purchase Rate

20.74%

Annual Fee

$0

Max Free Days

55

$30

More details

Purchase Rate

8.99%

Annual Fee

$0

Max Free Days

55

$30

More details

Learn more about credit cards

A credit card’s interest rate is one of the most common financial features to research and compare, and for good reason. There can be significant variations between interest rates on different cards, as well as the number of interest-free days attached to a card, and that can end up costing the cardholder money.

What is credit card interest?

The premise of a credit card is that the purchases you make on the card are actually funds borrowed from the bank or financial institution, until the amount is paid off in full. The institution then applies an interest rate percentage figure to any dollar amount that is not paid off in full by the agreed amount of time set out by the card provider.

The interest amount on top of the amount owed is known as credit card interest.

Interest-free periods - how they work

You will regularly see attached to a credit card a number of interest-free days you have to pay off the amount you have spent in a statement issued to you each billing cycle. For example, if you have a 55-day interest-free period, that means you have 55 days from the day the statement was issued to pay the purchase amount due to the card provider.

Failure to pay

If you fail to pay the full amount off during that time, the card’s interest rate will be applied to the amount due as an extra payment.

Interest-free periods and billing cycles

The interest-free period you have may not correspond to your billing cycle.

Many card providers issue statements each month, while offering 55-day interest-free periods. This means your interest free period may end during the next billing cycle. You need to be aware of when the interest-free period finishes in your next billing cycle.

Being smart about your interest-free days

Interest-free days provide flexibility with purchases so that you can purchase something early in your billing cycle and then have the remainder of your 55-day period to pay back the purchase amount.

There are several ways to maximise the benefit of having interest-free days

  • Purchase as early as you can in the billing cycle. This allows you more time to pay the amount off within the interest free period. If, for example, you purchase something on day 40 of a 55-day billing cycle, it means you have only 15 days left to make the full payment. Whereas if you made the purchase on day one, you would have the full 55 days to pay the amount off before interest was applied.
  • Understand interest-free days apply only to eligible purchases. The definition of the term ‘eligible purchases’ varies slightly between different banks and financial institutions, but usually refers to everyday spending. This means other transactions will not necessarily be covered, so check with your card provider about their policy.
  • You can lose your interest-free period. If you don’t pay the full amount due by your interest-free period, or only pay the minimum amount, you will lose your interest-free period until the full amount is paid in the next billing cycle. Your interest-free period will then be reinstated.

Looking beyond interest-free days

When you’re looking at the interest-free period, you also need to look at the card’s interest rate, annual fee and other features.  You need to take into consideration:

  1. Some interest rates can exceed 20 per cent, so compare what different card providers are offering as this can make a substantial difference if you don’t meet your interest-free period obligations.
  2. There may be a $0 annual fee for the first year with the card, but you also need to look at what the annual fee reverts to after that year.
  3. Examine what the charges are on any balance transfers made when you first get the card as well as after any special introductory periods.
  4. Investigate whether cards with similar interest free-periods also have a rewards program attached to them that may suit your needs.
  5. Finally, you need to realistically appraise your spending habits and determine whether the credit card has everything you require.

If you’re disciplined with money and are working towards clearly defined financial goals, a credit card can be a valuable tool in assisting you to achieve those goals. But if you’re looking at credit cards as a quick fix solution to a problem situation, you need to look at other more effective options.

Frequently asked questions

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 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 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.

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.

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.

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.

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. 

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 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.

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. 

What happens if I have a bad credit score?

If you have a bad credit score, you might encounter two main problems. First, the lower your credit score, the more likely you are to be rejected when you apply for a loan or any other credit product. Second, if your application is accepted, the less likely you are to qualify for the lowest interest rates.

Why should I check my credit rating?

There are two reasons you should check your credit rating: so you have a better understanding of your financial position, and so you can take action (if necessary) to improve your credit rating.

Lenders use credit ratings or credit scores to assess loan applications. The higher your score, the more likely you are to get approved, and the more likely you are to be charged lower interest rates and lower fees. Conversely, the lower your credit score, the less likely you are to get approved, and the more likely you are to be charged higher interest rates and higher fees.

Why do different credit reporting bureaus use different scores?

The reason Equifax, Experian and Illion use different scores is because they are independent companies with their own different methodologies. As a result, a score of, say, 700 would mean different things at different credit reporting bureaus.

However, the one thing they have in common is that they divide their scores into five tiers. So if you receive a tier-two credit score from one bureau, you will probably receive a tier-two score from the others, as well.

Can I get a credit card on part-time/casual work?

Yes, as credit card providers look at your annual income amount as well as your occupation. Minimum income requirements tend to be between $30,000 – $40,000 for standard and rewards credit cards, however low income credit cards can have minimum income requirements as low as $15,000 per year.

How to get a credit card for the first time

A credit card can be a useful financial tool, provided you understand the risks and can meet repayment obligations.

If you’re a credit card first-timer, review your options. Think about what kind of credit card would suit your lifestyle, and compare providers by fees, perks and repayments.

Once you’ve selected a card, it’s time to apply. Credit card applications can generally be completed in store, online or over the phone.

When you apply for a credit card for the first time, you must meet age, residency and income requirements. As proof, you must also provide documentation such as bank account statements.

How easy is it to get a credit card?

For most Australians, there are no great barriers to applying for and getting approved for a credit card. Here are some points that a lender will consider when assessing your credit card application.

Credit score: A bad credit score is not the be all and end all of your application, but it may stop you being approved for a higher credit limit. If your credit score is less than perfect, apply for the credit limit that you need, rather than the one you want.

Annual income: Most credit cards have minimum annual income requirements. Make sure you’re applying for a card where you meet the minimum.

Age & residency: You need to be at least 18 years old to apply for a credit card in Australia, and most require that you are an Australian citizen or permanent resident. However, there are some credit cards available to temporary residents.

What's the best credit card for rewards?

There is no one-size-fits-all best rewards credit card. It's best you research what type of rewards program you'd like, as well as the fees, interest rate and conditions associated with those types of cards before making a choice. 

Rewards credit cards can also come with high annual fees that may end up nullifying the rewards, so think how often you use the card to decide whether the benefits outweigh the extra cost for you. A card with a lower annual fee might require a lot of spending to get any useful rewards, while another card with a higher annual fee might need fewer purchases to get a reward. 

How many numbers are on a credit card?

The numbers on your credit card actually follow a universal standard which is used to identify specific functions. Each credit card has a different amount of numbers. Visa and Mastercard have 16, American Express has 15 and Diner’s Club has 14. 

The first number on a credit card always identifies what type of credit card it is. Visa cards start with a 4, whereas Mastercard starts with a 5 and American Express with a 3. The remainder of the digits represent the account number, including the last number which is used to verify that your credit card is actually valid. 

Credit cards also have additional verification numbers, which are mainly used when the card isn’t present for phone and online purchases. These are the three-digit numbers on the back of Visa and MasterCard or the four-digit numbers on the front of an American Express card.