Compare 0% Purchase Credit Cards - Australia
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- Default
- Longest Purchase Period
- Lowest Cash Advance Rate
- Longest Balance Transfer Period
Savrr.com is a trading name of Fair Comparison Pty Ltd. Fair Comparison compares loan products from a range of banks and other financial or credit product providers and does not compare all products in the market or all product features. To filter the results, you will need to enter some basic information which will generate a comparison of products that fall within those parameters. The default ordering of products is based on the Longest Purchase Period. Fair Comparison do not take into account your objectives, financial situation or needs, or provide advice, assistance, or recommendations.
Citi - Rewards Credit Card
Purchases and Balance Transfer offer
Purchase Rate
Interest Free Period
Balance Transfer
2% BT fee applies.
Annual Fee
BOQ - Blue Visa Credit Card
Purchase Rate
Interest Free Period
Balance Transfer
0% BT fee applies. No interest free days apply to retail purchases while you have a Balance Transfer
Annual Fee
Credit Union SA - Education Community Credit Card
Purchase Rate
Interest Free Period
Balance Transfer
Annual Fee
Credit Union SA - Workplace Benefits Credit Card
Purchase Rate
Interest Free Period
Balance Transfer
Annual Fee
Bankwest - Zero Platinum Mastercard
Purchase Rate
Interest Free Period
Balance Transfer
3% BT fee applies.
Annual Fee
Bankwest - Zero Classic Mastercard
Purchase Rate
Interest Free Period
Balance Transfer
3% BT fee applies.
Annual Fee
Virgin Money Australia - No Annual Fee Credit Card
Purchase Rate
Interest Free Period
Annual Fee
Citi - Simplicity Credit Card
Purchase Rate
Interest Free Period
Balance Transfer
0% BT fee applies.
Annual Fee
Citi - Rewards Credit Card
Flybuys offer
Purchase Rate
Interest Free Period
Annual Fee
Latitude Financial Services - Gem Visa Credit Card
Purchase Rate
Interest Free Period
Annual Fee
0% Purchase Rate Cards Guide
There can be many benefits to having a credit card. But paying interest is a distinct disadvantage. You can usually avoid paying interest by always repaying your debt in full before the interest free period due date. Or you can get a 0% purchase credit card.
The thing is, each one has different features, and with all the hype and financial jargon floating around, figuring out which could be suitable can be tricky. We get it and we’re here to help with easy-to-understand information and a guide that’ll help you compare 0% purchase credit cards, so you can pick one that’s suitable for you.
What is a 0% purchase credit card?
The 0% purchase credit card, also known as a 0% purchase rate credit card, falls into the category of interest-free credit cards. Others in the family include 0% interest on balance transfers and 0% foreign transaction fee credit cards.
As with any other credit cards, a 0% purchase credit card will enable you to buy products and services using someone else’s money (that you’ve borrowed!). The difference is, you won’t have to pay interest in certain circumstances, usually for a set period of time.
Importantly, a 0% purchase rate credit card is unlikely to be completely interest free, so make sure you check the terms and conditions of any card before applying. This will help you understand exactly when interest could be charged, and associated time limits on interest free periods and will also let you know about other fees and charges.
0% Foreign transaction fee credit cards
With this kind of card, you can make overseas purchases without facing higher interest charges or fees for foreign transactions. This type of credit card tends to appeal to people who do a lot of international travel, as well as businesses or people who buy products and services from overseas.
0% Balance transfer credit cards
With a 0% balance transfer credit card, you can transfer an existing account balance from another credit card to a credit card that doesn’t charge an interest fee, on balance transfers at least. By doing so, for a specified period, you won’t pay interest on that balance. It’s a popular way to help pay down or eliminate your debt entirely.
How does a 0% purchase credit card work?
Many credit card companies offer an interest-free period for new signups. Another popular credit card feature is a regular interest-free period. These are not the same thing as what’s on offer with a 0% purchase credit card.
Introductory interest-free periods give you a wide period of time within which to repay credit you use to make initial purchases before you’ll have to begin paying interest. Introductory interest-free periods tend to be anywhere from three to 12 months, however in some rare cases the interest-free period might be longer (such as up to 20 months).
Cards with a regular interest-free period give you up to a particular number of days, often 44 or 55 days, to pay your card balance in full before you’ll be charged interest.
For example, if you buy a $100 shirt on credit on the first day of your 44-day interest-free period, you’ll have 44 days to pay $100 into your credit card account if you want to avoid having to pay interest on the amount. If you were to buy the $100 shirt on day 34 of your payment cycle, you’d have 10 days to pay the $100 back into your account.
Most 0% purchase credit cards will offer 0 per cent interest on purchases for a set period (such as 12 months), before reverting to the disclosed interest rate. However, there are some limited cards that you’ll never have to pay interest on. You do have to pay minimum repayments, though. And the lender is likely to have different costs associated, such as a monthly fee.
Pros and Cons of 0% Purchase Credit Card's
0% Purchase credit card advantages
- You can make purchases that will take you longer than normal to pay off without being stung by massive interest fees for a set period
- Because your debt won’t continue to grow with the addition of interest, it should reduce the likelihood of spiralling credit card debt
- You may not be paying for rewards you don’t use
- If your card charges a monthly fee, it might be more manageable than potential interest charges.
Disadvantages of 0% purchase credit cards
- Many 0% purchase credit cards are ‘no frills’ in that they don’t offer any rewards or other perks
- Many 0% purchase credit cards charge monthly fees
- Many cards offer 0% on purchases for a set period (such as 12 months), then revert to the advertised interest rate
- If you only spend a small amount of credit, the value of the monthly fee may be greater than what you would pay on a low interest rate credit card.
What is the best 0% purchase credit card?
So which 0% purchase credit card is the best? Actually, there’s no best credit card. If there were, everyone would apply for that single card. Instead, each card’s pros and cons make it more or less suitable based on your personal circumstances.
One thing that can help to choose a great 0% purchase credit card is to compare a range of options based on your own needs and circumstances, then checking the eligibility criteria before you apply.
We’ve put together some useful information to help compare any type of credit card in our main credit card comparison guide. The below questions are intended to build on that info for 0% purchase credit cards.
How much do you need to buy with your credit card? Some 0% purchase credit cards are more or less economical depending on the credit limit you apply for, so matching your desired credit limit with the credit limits available on each card will enable you to effectively compare the costs of each.
Will you need to do anything with your card other than make purchases? Some 0% purchase cards may not allow balance transfers or cash advances, so if you want to be able to do those things, check if this rules out several options.
Compare 0% purchase credit cards with confidence
By using our main credit card comparison guide along with the information here, you’ll have some tools to help you effectively compare 0% purchase credit cards, which could help you choose one that’s suitable for your needs.
0% Purchase Credit Card FAQs
Are 0% purchase credit cards worth it?
A 0% purchase credit card can sound like a great deal, but there are factors to consider, including what fees and charges come with the card, and how long that interest-free period is and whether you are likely to be in a position to pay it off before the interest is charged (or if that interest is a cost you are willing to absorb). In some instances, a low-interest purchase card may end up costing less, but this will depend on your individual circumstances.
What is the purchase rate on a credit card?
The purchase rate is the interest rate that your lender applies to purchases made on your credit card. This rate will be applied at the end of each billing cycle on your unpaid purchase balance.
What does 0% on purchases mean for a credit card?
A 0% annual percentage rate (or APR) on your credit card means that you won’t be charged any interest for a fixed period of time, which will be advertised by your lender. Once that interest-free period ends, you will be charged interest on your remaining balance, so it's important to take that into account when deciding whether this could be a suitable option for you.
Credit Cards Providers
