Best 0% purchase credit cards

What is a 0% purchase credit card?

0% purchase credit cards give you a set period during which you pay no interest on purchases, as long as you meet the minimum payment requirements. The interest-free period varies by card; the longest current offer runs 15 months.

Lenders rarely offer credit for free, so weigh up any fees and other terms carefully before you apply.

How 0% purchase cards work

While the promotional period runs, the issuer charges no interest on your purchases, even if you don't clear the balance in full. You still need to make the minimum repayment each month.

Clear the balance before the period ends to avoid a large interest charge. After it expires, any remaining balance reverts to the card's standard variable rate.

Types of interest-free credit cards in Australia

Most offer a 0% purchase rate for a promotional period. Once it ends, the revert rate (the standard rate on new purchases or any balance) can be much higher.

You may also see lifetime interest-free cards. They don't charge interest, but they're rarely free of cost: most charge a fixed ongoing monthly or annual fee.

Another option is a 0% balance transfer card, which lets you move existing debt from another card and avoid interest for a set period. See balance transfer cards for that.

What you need to know before applying

Promotional period length: the longest offers run up to 15 months interest-free on purchases.

Interest rate: check the standard variable rate that applies once the promo ends.

Minimum repayment: make at least the minimum each month. Miss it and the 0% promotion can be cancelled.

Annual fees: look for a low annual fee, especially if you plan to repay over more than 12 months.