How to make your credit card interest-free

man comparing his interest free credit cards

No one likes paying interest. So why would you pay it on your credit card if you can avoid it? 

The truth is, there are a handful of hacks to make your credit card interest-free without chopping it to pieces.  

One simple way to avoid paying interest on your credit card is by paying down your balance in full, month to month. While this might seem obvious, what it means is that whether you have a card with a 0% or 24.99% interest rate, you won’t be charged either way. 

So, say you have a rewards credit card with a hefty interest rate in return for a killer points earning system: if you spend and then repay what you owe each month you’re essentially using an interest-free card with all the perks! 

How do I change my credit card to 0% interest? 

Another option is to take advantage of a 0% introductory interest rate! 

Currently on the Mozo database there are 15 credit cards that come with an introductory interest-free offer, for between six and 17 months. This means that for a period of time you won’t be charged any interest at all. A 0% intro offer could be a perfect option if you have a big purchase in mind that you need a few months to pay off, or you intend your spending might bump up over a period of time. 

But it’s important to note that once the offer is up you will have to start paying interest, and in some cases credit card revert rates can be hefty. 

On the other hand, there is the option of a 0% credit card, such as the NAB StraightUp or CommBank Neo. Similar to Buy Now Pay Later, you’ll pay absolutely no interest when you make purchases on this card. Instead, there is a monthly fee which is calculated in accordance with your credit limit and spending. 

How do interest free days work on a credit card? 

You may have seen 44 or 55 “interest-free days” advertised with a particular credit card - but what does that mean exactly? Let’s break it down. 

Interest-free days are a credit card feature which refers to how long you may go without paying interest on purchases, if you pay down your balance in full each month. 

The interest-free period starts at the beginning of your statement period. However, the timing of your purchase will determine how many days you receive. 

For example, say you have a credit card with 55 interest days: if you make a purchase on the first day of your statement period, then that purchase will have the full 55 days. However, if you make your purchase on the tenth day of your statement period, then that purchase will have 45 interest free days. So the later in the statement period you make the purchase, the fewer interest free days you receive on that particular transaction. 

While 44 or 55 interest-free days are more common on a credit card, on the Mozo database some cards offer all the way up to 110 interest-free days. 

Is it a good idea to do a balance transfer?   

If you have a bunch of credit card debt that you need to clear, a balance transfer offer is a good idea. 

Balance transfer offers come in all shapes and sizes, with the longest 0% offer on the Mozo database sitting at a massive 36 months. 

With these offers customers are charged 0% interest on their existing balance for an agreed period of time. However, because they are designed for clearing debt, any new purchases made on the card will not be subject to 0% interest. Instead, customers will be charged a hefty purchase or cash advance rate. 

So, a tactic to make your credit card interest-free through a balance transfer, is only a savvy option if you wish to clear your credit card debt without making new purchases. 

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Looking for ways to make your credit card interest-free? You may need to make the switch! Compare hot options below or jump over to our credit card comparison table for more.

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  • Apply By 31 October 2021
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    Bendigo Bank Low Rate Credit Card

    0% p.a. on purchases for 12 months (Reverts to 11.99% p.a). Also 0% balance transfer for 12 months. Low annual fee of $45 and no fees for additional cardholders.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    0% p.a. for 12 months then 11.99% p.a.
    0% p.a. for 12 months and then 11.99% p.a. (2.00% balance transfer fee)
    $45
    -
    Go to site
    Details
  • Apply By 2 August 2021
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    Kogan Money Black Card

    Kogan Money Black Card has no annual fee and no cap or expiry date on points. It comes with a 55 interest free days on purchases and a 0% balance transfer rate for the first 12 months. Earn up to $400 in Kogan.com Credit, $50 Credit on first eligible spend in 30 days and $350 Credit when you spend $1,500 on eligible purchases in 90 days from card approval.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    20.99% p.a.
    0% p.a. for 12 months and then 21.74% p.a.
    $0
    Kogan Rewards Points
    Go to site
    Details
  • Apply By 30 November 2021
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    St.George Vertigo - Cashback Offer

    $300 cashback when you take out a new Vertigo Credit Card and spend $4k on eligible purchases within 120 days of the new card approval. No annual fee for the first year, $55 thereafter. New cards only, Eligibility criteria and T&Cs apply. Offer ends November 30th 2021.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    13.99% p.a.
    6.99% p.a. for 12 months and then 21.49% p.a.
    $55 $0 in the first year
    -
    Go to site
    Details
  • placeholder
    MoneyMe Freestyle Virtual Mastercard

    A virtual card that’s available to use instantly once approved (approvals typically within 60 minutes). Tap n Pay, transfer money to friends and get awesome credit back offers from over 1,400 stores.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    16.99% p.a.
    No current offer
    $209 $0 - $149 based on credit limit, $5/month for balances over $20.
    -
    Go to site
    Details
  • Apply By 30 November 2021
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    Westpac Low Rate

    Enjoy a super low rate of 13.74% with 55 days interest free plus 0% balance transfer for up to 28 months at 1% BT fee. No annual card fee for the first year, $59 thereafter. New Cards only. Offer ends November 30th 2021. T&C's and exclusions apply.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    13.74% p.a.
    0% p.a. for 28 months and then 21.49% p.a. (1.00% balance transfer fee)
    $59 $0 in the first year
    -
    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2020
    American Express Qantas Ultimate Card

    Receive 55,000 bonus Qantas Points when you apply, are approved, and meet the minimum spend criteria of $3,000 in the first 3 months. T&Cs apply. Available to new Card Members only.

    Purchase rate
    Balance transfer rate
    Annual fee
    Rewards program
    20.74% p.a.
    No current offer
    $450
    Qantas Frequent Flyer
    Go to site
    Details

^See information about the Mozo Experts Choice Credit Card Awards

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