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 19 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 these cards. 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. 

RELATED ARTICLE:
Credit cards: A year in review, and what's changed? 

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.

Compare credit cards - last updated 13 August 2022

Search promoted credit cards below or do a full Mozo database search . Advertiser disclosure
  • Apply By 31 Oct 2022
    Westpac Low Rate - Cashback Offer

    Enjoy a super low rate of 13.74% with 55 days interest free plus up to $200 cashback - $50 cashback for each month you spend $1,000 or more on eligible purchases in the first 4 months from card approval. New Cards only. T&C's and exclusions apply.

    Purchase rate
    13.74% p.a.
    Balance transfer rate
    6.99% p.a. for 12 months and then 21.49% p.a. (1.00% balance transfer fee)
    Annual fee
    $59
    Rewards program
    -
    Details
  • Virgin Money No Annual Fee Card

    Virgin Money No Annual Fee for the life of the card. 0% p.a. for 12 months on purchases (reverts to ongoing purchase rate) and balance transfers (reverts to cash advance rate).

    Purchase rate
    0% p.a. for 12 months then 18.99% p.a.
    Balance transfer rate
    0% p.a. for 12 months and then 20.99% p.a.
    Annual fee
    $0
    Rewards program
    -
    Details
  • Mozo Expert Choice Badge
    American Express Qantas Ultimate Card

    Earn up to 100,000 bonus Qantas Points (75,000 bonus Qantas Points when you apply online by 23 August 2022, are approved, and spend $3,000 on your new Card within the first 3 months, plus an additional 25,000 Qantas Points in your second year upon fee renewal). T&Cs apply. New Card Members only.

    Purchase rate
    20.74% p.a.
    Balance transfer rate
    No current offer
    Annual fee
    $450
    Rewards program
    Qantas Frequent Flyer
    Details
  • Virgin Money Virgin Australia Velocity Flyer Card - Balance Transfer Offer

    Get in the air with a $129 Virgin Australia Gift Voucher each year. 0% p.a. for 28 months on balance transfers.

    Purchase rate
    20.74% p.a.
    Balance transfer rate
    0% p.a. for 28 months and then 20.99% p.a.
    Annual fee
    $129 $0 in the first year
    Rewards program
    Velocity Frequent Flyer
    Details
  • Apply By 31 Aug 2022
    St.George Vertigo - Balance Transfer Offer

    0% p.a. for 32 months on balance transfers requested at card application. 0% balance transfer fee applies. Rate then switches to applicable variable cash advance rate. No annual fee for the first year, $55 thereafter. New cards only, Eligibility criteria and T&Cs apply.

    Purchase rate
    13.99% p.a.
    Balance transfer rate
    0% p.a. for 32 months and then 21.49% p.a.
    Annual fee
    $55 $0 in the first year
    Rewards program
    -
    Details
  • Apply By 31 Aug 2022
    Mozo Expert Choice Badge
    American Express Platinum Edge Credit Card

    Receive a $200 credit on your Card when you spend $200 or more at Amazon.com.au within the first 3 months plus get 30,000 Bonus Membership Rewards Points when you apply online by 31 August 2022, are approved and spend $3,000 within the first 3 months. T&Cs apply. New Card Members only.

    Purchase rate
    20.74% p.a.
    Balance transfer rate
    No current offer
    Annual fee
    $195
    Rewards program
    Membership Rewards
    Details

^See information about the Mozo Experts Choice Credit Card Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.