Best Interest Free Credit Cards Australia (0% Interest)
- A no-interest credit card could save the average cardholder $269 in a 12-month period, Money.com.au's analysis shows.
What type of interest-free credit card are you looking for?
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0% interest credit cards (ongoing rate)
These are no-interest credit cards where the 0% rate is a permanent feature of the card. You should never pay any interest on these cards.
But having one of these 0% interest credit cards is not a free ride. Instead of interest, you’ll likely pay a monthly fee for the card. Here are the interest-free credit cards currently available in Australia.
0% interest credit cards compared
Transport Mutual Credit Union Interest Free Clement Card | |
|---|---|
| Regular fee | $0 |
| Late payment fee | None listed |
| Max credit limit | $3,000 |
| Visit provider | |
Community First n0w Credit Card (0% interest) | |
| Regular fee | $9/month for $1,000 limit; $14/month for $2,000 limit; $19/month for $3,000 limit Or $0 if you don’t use the card in a month and have no outstanding balance. |
| Late payment fee | $0 |
| Max credit limit | $3,000 |
| Visit provider | |
Westpac Flex Card (0% interest) | |
| Regular fee | $10/month or $0 if you don’t use the card that month and have no outstanding balance. |
| Late payment fee | $0 |
| Max credit limit | $1,000 |
| Visit provider | |
NAB StraightUp Card (0% interest) | |
| Regular fee | $10/month for $1,000 limit; $15/month for $1,001 - $2,000 limit; $20/month for $2,001 - $3,000 limit Or $0 if you don’t use the card in a month and have no outstanding balance. |
| Late payment fee | $0 |
| Max credit limit | $3,000 |
| Visit provider | |
CommBank Neo Card (0% interest) | |
| Regular fee | $12/month for $1,000 limit; $18/month for $2,000 limit; $22/month for $3,000 limit Or $0 if you don’t use the card in a month and have no outstanding balance. |
| Late payment fee | $0 |
| Max credit limit | $3,000 |
| Visit provider | |
wizitcard (0% interest) | |
| Regular fee | $19/month Or $0 if you don’t use the card in a month and have no outstanding balance. |
| Late payment fee | $1/day capped at $100 in a rolling 12 month period. |
| Max credit limit | $1,000 |
| Visit provider |
| Regular fee | Late payment fee | Max credit limit | Visit provider | |
|---|---|---|---|---|
Transport Mutual Credit Union Interest Free Clement Card | $0 | None listed | $3,000 | |
Community First n0w Credit Card (0% interest) | $9/month for $1,000 limit; $14/month for $2,000 limit; $19/month for $3,000 limit Or $0 if you don’t use the card in a month and have no outstanding balance. | $0 | $3,000 | |
Westpac Flex Card (0% interest) | $10/month or $0 if you don’t use the card that month and have no outstanding balance. | $0 | $1,000 | |
NAB StraightUp Card (0% interest) | $10/month for $1,000 limit; $15/month for $1,001 - $2,000 limit; $20/month for $2,001 - $3,000 limit Or $0 if you don’t use the card in a month and have no outstanding balance. | $0 | $3,000 | |
CommBank Neo Card (0% interest) | $12/month for $1,000 limit; $18/month for $2,000 limit; $22/month for $3,000 limit Or $0 if you don’t use the card in a month and have no outstanding balance. | $0 | $3,000 | |
wizitcard (0% interest) | $19/month Or $0 if you don’t use the card in a month and have no outstanding balance. | $1/day capped at $100 in a rolling 12 month period. | $1,000 |
Is a 0% interest credit card with a monthly fee a good deal?
The way these credit cards function is fundamentally different to how credit cards work ordinarily. Let's look at the pros and cons.
What’s good:
- There's no interest charged, so there's an upper limit on how much the card will cost you.
- These are simple cards that are relatively easy to compare to one another.
- Low maximum credit limits mean there is a cap on how much debt you can build up.
- Some of these credit cards come with no international transaction fees.
What’s bad:
- You’ll pay a monthly fee if you use the card at all. Over a year this can add up the equivalent of (or more than) the annual fee on a standard credit card.
- Most of these cards don’t offer the kinds of perks you usually associate with credit cards, like rewards points.
- They offer limited card functionality, e.g. some don’t allow cash advances, balance transfers or the option to add extra cardholders.
Expert tip
Zero interest does not mean zero cost. Consider if a low rate card is better for you if you intend to roll over a small balance each month. In many cases, this will be a lot cheaper than these low-limit cards that charge a monthly fee.
Brad Kelly, Money.com.au credit card expert
0% interest rate credit cards (intro offers)
Another option for an interest-free credit card is one with a 0% introductory offer on purchases. These are essentially standard credit cards with a special offer attached.
You’ll pay no interest on purchases for an initial period (often 6-12 months) but then the card reverts to the standard interest rate.
You still need to make the minimum repayment during the interest-free period. If there is an outstanding balance on the card after the interest-free period, you’ll start being charged interest.
Compare promotional 0% interest credit card offers
Bankwest Breeze Mastercard | |
|---|---|
| Purchase rate | 0% p.a. for 12 months then 12.99% p.a. |
| Annual fee | $49 (waived for first year) |
| Key feature | Up to 55 days interest free on purchases |
| Visit provider | |
Bankwest Breeze Platinum Mastercard | |
| Purchase rate | 0% p.a. for 15 months then 12.99% p.a. |
| Annual fee | $69 (waived for first year) |
| Key feature | Complimentary overseas travel insurance |
| Visit provider | |
Virgin Money No Annual Fee Credit Card | |
| Purchase rate | 0% p.a. for 12 months then 18.99% p.a. |
| Annual fee | $0 |
| Key feature | 0% p.a. on balance transfers for 12 months |
| Visit provider | |
Citi Rewards Card - Purchase and Balance Transfer Offer | |
| Purchase rate | 0% p.a. for 12 months then 21.49% p.a. |
| Annual fee | $199 |
| Key feature | Earn 1 Citi reward point per $1 spent (capped) |
| Visit provider | |
BOQ Blue Visa Credit Card | |
| Purchase rate | 0% p.a. for 9 months then 20.74% p.a. |
| Annual fee | $60 |
| Key feature | Earn 1 Q rewards credit card point per $1 spent on everyday purchases |
| Visit provider | |
Credit UnionSA Education Community Credit Card | |
| Purchase rate | 0% p.a. for 6 months then 11.49% p.a. |
| Annual fee | $0 |
| Key feature | Up to 55 days interest free on purchases |
| Visit provider | |
Suncorp Standard Credit Card | |
| Purchase rate | 0% p.a. for 6 months then 12.74% p.a. |
| Annual fee | $55 (waived for first year) |
| Key feature | 0% p.a. for 6 months on balance transfers |
| Visit provider | |
Commbank Low Rate credit card | |
| Purchase rate | 0% p.a. for 6 months then 13.99% p.a. Apply by 29 Feb 2024. |
| Annual fee | $72 ($6 monthly) |
| Key feature | 5.99% p.a. on balance transfers for 5 months |
| Visit provider | |
Coles No Annual Fee Credit Card | |
| Purchase rate | 0% p.a. for 6 months then 19.99% p.a. Apply by 31 Jan 204. |
| Annual fee | $0 |
| Key feature | 20,000 Flybuys points when you spend $3k in the first 90 days. Apply by 31 Jan 2024. |
| Visit provider | |
Citi Simplicity Card | |
| Purchase rate | 0% p.a. for 6 months then 21.49% p.a. |
| Annual fee | $0 |
| Key feature | Up to 55 days interest free on purchases |
| Visit provider | |
Citi Rewards Card - Bonus Flybuys Points Offer | |
| Purchase rate | 0% p.a. for 6 months then 21.49% p.a. |
| Annual fee | $199 |
| Key feature | 100,000 Flybuys points when you spend $5k in the first 90 days. Apply by 30 April 2024. |
| Visit provider |
| Purchase rate | Annual fee | Key feature | Visit provider | |
|---|---|---|---|---|
Bankwest Breeze Mastercard | 0% p.a. for 12 months then 12.99% p.a. | $49 (waived for first year) | Up to 55 days interest free on purchases | |
Bankwest Breeze Platinum Mastercard | 0% p.a. for 15 months then 12.99% p.a. | $69 (waived for first year) | Complimentary overseas travel insurance | |
Virgin Money No Annual Fee Credit Card | 0% p.a. for 12 months then 18.99% p.a. | $0 | 0% p.a. on balance transfers for 12 months | |
Citi Rewards Card - Purchase and Balance Transfer Offer | 0% p.a. for 12 months then 21.49% p.a. | $199 | Earn 1 Citi reward point per $1 spent (capped) | |
BOQ Blue Visa Credit Card | 0% p.a. for 9 months then 20.74% p.a. | $60 | Earn 1 Q rewards credit card point per $1 spent on everyday purchases | |
Credit UnionSA Education Community Credit Card | 0% p.a. for 6 months then 11.49% p.a. | $0 | Up to 55 days interest free on purchases | |
Suncorp Standard Credit Card | 0% p.a. for 6 months then 12.74% p.a. | $55 (waived for first year) | 0% p.a. for 6 months on balance transfers | |
Commbank Low Rate credit card | 0% p.a. for 6 months then 13.99% p.a. Apply by 29 Feb 2024. | $72 ($6 monthly) | 5.99% p.a. on balance transfers for 5 months | |
Coles No Annual Fee Credit Card | 0% p.a. for 6 months then 19.99% p.a. Apply by 31 Jan 204. | $0 | 20,000 Flybuys points when you spend $3k in the first 90 days. Apply by 31 Jan 2024. | |
Citi Simplicity Card | 0% p.a. for 6 months then 21.49% p.a. | $0 | Up to 55 days interest free on purchases | |
Citi Rewards Card - Bonus Flybuys Points Offer | 0% p.a. for 6 months then 21.49% p.a. | $199 | 100,000 Flybuys points when you spend $5k in the first 90 days. Apply by 30 April 2024. |
Is it a good idea to get a credit card with a 0% interest introductory offer?
What’s good:
- You’ll save on interest while still having access to any perks offered by the card, such as cashback, rewards points and complimentary credit card travel insurance insurance.
- It can work well if you have a large one-off purchase to make, allowing you to pay it off interest-free within the introductory period.
What’s bad:
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The interest-free period is temporary and there is often a relatively high revert rate. The lowest rate credit cards rarely offer an introductory no-interest period.
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You’re usually still charged interest on cash advances (e.g. withdrawing cash) and card fees may still apply.
0% interest balance transfers
Another way to pay no interest on a credit card is to take advantage of a 0% balance transfer offer. This involves switching the balance of an existing credit card to a new one that offers an interest-free period on the transferred balance for a limited period.
The no-interest period applies to the existing balance only (not new purchases).
Here are some of the longest 0% balance transfer credit card offers available right now.
Compare 0% balance transfer credit cards
BankSA Vertigo Visa | |
|---|---|
| Balance transfer offer | 0% for 32 months (reverts to 21.49% p.a.) 1% BT fee applies. |
| Annual card fee | $55 |
| Visit provider | |
Bank of Melbourne Vertigo Visa | |
| Balance transfer offer | 0% for 32 months (reverts to 21.49% p.a.) 1% BT fee applies. |
| Annual card fee | $55 |
| Visit provider | |
St.George Bank Vertigo Visa | |
| Balance transfer offer | 0% for 32 months (reverts to 21.49% p.a.) 1% BT fee applies. |
| Annual card fee | $55 |
| Visit provider | |
Bankwest Zero Mastercard | |
| Balance transfer offer | 0% for 28 months (reverts to 14.99% p.a.) 2% BT fee applies. |
| Annual card fee | $0 |
| Visit provider | |
Bankwest Zero Platinum Mastercard | |
| Balance transfer offer | 0% for 28 months (reverts to 14.99% p.a.) 2% BT fee applies. |
| Annual card fee | $0 |
| Visit provider | |
Westpac Low Rate Card | |
| Balance transfer offer | 0% for 28 months (reverts to 21.49% p.a.) No BT fee. |
| Annual card fee | $0 in first year, then $59 |
| Visit provider | |
NAB Low Rate Card | |
| Balance transfer offer | 0% for 28 months (reverts to 21.74% p.a.) 2% BT fee applies. |
| Annual card fee | $0 in first year, then $59 |
| Visit provider | |
Suncorp Clear Options Credit Card | |
| Balance transfer offer | 0% for 28 months (reverts to 21.99% p.a.) No BT fee. |
| Annual card fee | $55 |
| Visit provider | |
ANZ Low Rate Balance Transfer Offer | |
| Balance transfer offer | 0% for 28 months (reverts to 21.99% p.a.) 2% BT fee applies. |
| Annual card fee | $0 in first year, then $58 |
| Visit provider | |
Citi Clear Credit Card | |
| Balance transfer offer | 0% for 28 months (reverts to 22.24% p.a.) 2% BT fee applies. |
| Annual card fee | $99 |
| Visit provider | |
Virgin Australia Velocity Flyer Card | |
| Balance transfer offer | 0% for 24 months (reverts to 20.99% p.a.) Apply by 31 Jan 2024. |
| Annual card fee | $0 in first year, then $129 |
| Visit provider | |
Bank of Melbourne Amplify Rewards Platinum | |
| Balance transfer offer | 0% for 24 months (reverts to 21.49% p.a.) 1% BT fee applies. |
| Annual card fee | $49 in first year, then $124 |
| Visit provider | |
St.George Amplify Rewards Platinum | |
| Balance transfer offer | 0% for 24 months (reverts to 21.49% p.a.) 1% BT fee applies. |
| Annual card fee | $49 in first year, then $124 |
| Visit provider | |
BankSA Amplify Rewards Platinum | |
| Balance transfer offer | 0% for 24 months (reverts to 21.49% p.a.) 1% BT fee applies. |
| Annual card fee | $49 in first year, then $124 |
| Visit provider | |
Bank of Melbourne Amplify Signature - Rewards Option | |
| Balance transfer offer | 0% for 24 months (reverts to 21.49% p.a.) 1% BT fee applies. |
| Annual card fee | $199 in first year, then $295 |
| Visit provider | |
BankSA Amplify Signature - Rewards Option | |
| Balance transfer offer | 0% for 24 months (reverts to 21.49% p.a.) 1% BT fee applies. |
| Annual card fee | $199 in first year, then $295 |
| Visit provider | |
St.George Amplify Signature - Rewards Option | |
| Balance transfer offer | 0% for 24 months (reverts to 21.49% p.a.) 1% BT fee applies. |
| Annual card fee | $199 in first year, then $295 |
| Visit provider |
| Balance transfer offer | Annual card fee | Visit provider | |
|---|---|---|---|
BankSA Vertigo Visa | 0% for 32 months (reverts to 21.49% p.a.) 1% BT fee applies. | $55 | |
Bank of Melbourne Vertigo Visa | 0% for 32 months (reverts to 21.49% p.a.) 1% BT fee applies. | $55 | |
St.George Bank Vertigo Visa | 0% for 32 months (reverts to 21.49% p.a.) 1% BT fee applies. | $55 | |
Bankwest Zero Mastercard | 0% for 28 months (reverts to 14.99% p.a.) 2% BT fee applies. | $0 | |
Bankwest Zero Platinum Mastercard | 0% for 28 months (reverts to 14.99% p.a.) 2% BT fee applies. | $0 | |
Westpac Low Rate Card | 0% for 28 months (reverts to 21.49% p.a.) No BT fee. | $0 in first year, then $59 | |
NAB Low Rate Card | 0% for 28 months (reverts to 21.74% p.a.) 2% BT fee applies. | $0 in first year, then $59 | |
Suncorp Clear Options Credit Card | 0% for 28 months (reverts to 21.99% p.a.) No BT fee. | $55 | |
ANZ Low Rate Balance Transfer Offer | 0% for 28 months (reverts to 21.99% p.a.) 2% BT fee applies. | $0 in first year, then $58 | |
Citi Clear Credit Card | 0% for 28 months (reverts to 22.24% p.a.) 2% BT fee applies. | $99 | |
Virgin Australia Velocity Flyer Card | 0% for 24 months (reverts to 20.99% p.a.) Apply by 31 Jan 2024. | $0 in first year, then $129 | |
Bank of Melbourne Amplify Rewards Platinum | 0% for 24 months (reverts to 21.49% p.a.) 1% BT fee applies. | $49 in first year, then $124 | |
St.George Amplify Rewards Platinum | 0% for 24 months (reverts to 21.49% p.a.) 1% BT fee applies. | $49 in first year, then $124 | |
BankSA Amplify Rewards Platinum | 0% for 24 months (reverts to 21.49% p.a.) 1% BT fee applies. | $49 in first year, then $124 | |
Bank of Melbourne Amplify Signature - Rewards Option | 0% for 24 months (reverts to 21.49% p.a.) 1% BT fee applies. | $199 in first year, then $295 | |
BankSA Amplify Signature - Rewards Option | 0% for 24 months (reverts to 21.49% p.a.) 1% BT fee applies. | $199 in first year, then $295 | |
St.George Amplify Signature - Rewards Option | 0% for 24 months (reverts to 21.49% p.a.) 1% BT fee applies. | $199 in first year, then $295 |
Is a 0% balance transfer offer a good way to pay no interest on a credit card?
In theory a card with a balance transfer offer can essentially be the same as a zero-interest credit card. But only on the existing balance for the duration of the 0% offer.
What’s good:
- Can help you pay down debt by giving you a no-interest period on your balance.
- There are often generous 0% offer durations available – e.g. two years or longer.
What’s bad:
- You’ll be charged interest on any new purchases, often with no interest-free period (meaning interest is charged straight away).
- Once the balance transfer offer expires, the interest charged on any remaining balance is usually quite high.
- Some cards charge a balance transfer fee (e.g. 1-2% of the balance) as well as the usual card fees.
Credit cards with interest-free days
You can also avoid paying interest on a credit card by using the card’s interest-free days. This is a period of time after you make a purchase using your card during which no interest is charged.
Most credit cards come with interest-free days (55 days is by far the most common amount Money.com.au analysis shows). At the start of each credit card statement period, the interest-free days start counting down.
The key here is always paying off the balance of your credit card in full every month. If you do that, you should never pay interest on your credit card.
Credit cards with highest number of interest-free days
humm 90 Platinum Mastercard | |
|---|---|
| Interest-free days | Up to 110 |
| Interest rate on purchases | 25.80% p.a. |
| Annual card fee | $99 |
| Visit provider | |
People's Choice Visa Credit Card | |
| Interest-free days | Up to 62 |
| Interest rate on purchases | 12.95% p.a. (2.99% p.a. for the first 6 months) |
| Annual card fee | $59 |
| Visit provider | |
Beyond Bank Low Rate Visa Credit Card | |
| Interest-free days | Up to 62 |
| Interest rate on purchases | 11.00% p.a. |
| Annual card fee | $49 |
| Visit provider | |
Bank of us Visa Credit Card | |
| Interest-free days | Up to 57 |
| Interest rate on purchases | 9.99% p.a. |
| Annual card fee | $39 |
| Visit provider |
| Interest-free days | Interest rate on purchases | Annual card fee | Visit provider | |
|---|---|---|---|---|
humm 90 Platinum Mastercard | Up to 110 | 25.80% p.a. | $99 | |
People's Choice Visa Credit Card | Up to 62 | 12.95% p.a. (2.99% p.a. for the first 6 months) | $59 | |
Beyond Bank Low Rate Visa Credit Card | Up to 62 | 11.00% p.a. | $49 | |
Bank of us Visa Credit Card | Up to 57 | 9.99% p.a. | $39 |
How much can you save with an interest-free credit card?
This will depend on your card balance and the interest rate you would otherwise be paying if you didn’t have the benefit of a 0% interest rate.
But let’s look at a hypothetical example based on the average credit card balance in Australia (approximately $3,000) according to the Reserve Bank of Australia. We’ll compare the interest-free scenarios to the current average credit card rate of 17.64% p.a. and assume the cardholder is aiming to pay off their balance within one year.
| 0% interest credit card (12 month offer) | Ongoing 0% card with monthly fee | Credit card with 17.64% interest | |
|---|---|---|---|
Starting balance | $3,000 | $3,000 | $3,000 |
Monthly repayment | $300 | $300 | $300 |
Monthly card fee | n/a | $20 | n/a |
Total interest paid | $0 | $0 | $269 |
Total fees paid | $0 | $240 | $0 |
Amount saved | $269 | $29 | $0 |
How to get the best interest-free credit card
The best interest-free credit card will be different depending on what kind of card you want, and what you’ll be using it for. But generally here are some of the main card characteristics to keep in mind before applying for your credit card:
Longest interest-free period
All other things being equal, a longer interest-free period will be better as it gives you more time without interest charges applying. But all other things are rarely equal, so don’t rely on this factor alone.
Lowest revert rate
This is the interest rate that will apply once the no-interest offer period ends. It’s usually the card’s standard purchase rate. But on a balance transfer offer, you may be hit with the higher cash advance rate.
Low fees
For a lot of people, fees (not interest) are the biggest cost of having a credit card. A credit card with high fees will still be expensive even if it's interest-free. Look out for annual/monthly fees, balance transfer fees, late payment fees, cash advance fees, foreign exchange fees and fees for adding extra cardholders. For example, an ideal scenario could be a no annual fee credit card that also helps you save on interest.
Rewards
If credit card rewards (i.e. points) matters to you, keep this in mind when comparing no-interest cards. Most cards with an ongoing 0% interest rate don’t offer rewards.
Interest-free days
This is also important to factor into your comparison. Once the 0% interest period on a card ends, the interest-free days become your mechanism for avoiding interest. The more days, the better.
Extra perks
It’s no harm to keep an eye on the extras that often come with credit cards. This is likely not going to be your priority if you’re looking for an interest-free card, but you could still manage to nab some nice perks – like complimentary travel insurance on frequent flyer credit cards.
Frequently asked questions about interest-free credit cards
I’m confused, is a 0% interest offer different to interest-free days?
Yes, these are different ways of paying no interest on a credit card.
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0% interest offer: This is a temporary promotional offer, meaning you won’t pay any interest on the credit card during the offer period.
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Interest-free days: Pretty much all credit cards have interest-free days, even if there is no special promotion. These are the days you have to pay off a purchase as standard without being charged interest.
A good way of thinking about the difference is the example of a card offering a 0% interest-free offer for 12 months. During the 12 months there is no interest charged on purchases at all. After the 12 months, the card will likely still offer interest-free days as a standard feature.
Do I still need to make repayment during an interest-free offer period?
Yes you do. If you don’t you’ll likely be charged late or missed payment fees. But even if you pay just the minimum, there is the risk you’ll get to the end of the interest-free offer period with a balance remaining.
If that’s the case, interest will be charged on your balance at whatever interest rate the card reverts to.
What interest rate applies after the no-interest period?
After the interest-free period on a credit card ends, it’s usually the card’s standard variable purchase rate that applies. The main exception is balance transfer offers. After a 0% balance transfer offer ends, it’s often the card’s cash advance rate that applies to any remaining balance. This is usually higher than the purchase rate.
Are there any restrictions on what you can buy with a no-interest credit card?
If you’re just using the card for purchases, then no, there are usually no restrictions, including on using it as a travel credit card when you're overseas – although foreign exchange fees may apply. The only restriction is that the card’s credit limit will obviously still apply.
However, any cash-like transactions (called cash advances) usually aren’t covered by the interest-free offer. That includes cash withdrawals, cash transfers, buying foreign currency and spending on gambling (if that’s allowed at all).
Interest will be charged on these kinds of transactions at the card’s cash advance rate.
AS FEATURED IN
Written by
Editor
Sean Callery
Reviewed by
Credit Cards Expert
Brad Kelly
