How to spread Christmas costs with a 0% purchase rate credit card

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By Ceyda Erem ·

For many Aussies, Christmas has the tendency to sneak up. Before we know it, we’ll be dropping bundles of cash and draining our savings. 

But if you’re keen on getting a bit more financially savvy with your Christmas shopping this year, why not try picking up a 0% purchase rate credit card?

As the name suggests, a 0% purchase rate credit card is a type of card that comes with no interest, but for a specific time length. After the 0% interest period is up, the card then reverts to a purchase rate that can range from anywhere between 11% - 14%. 

While the idea of interest-free spending might sound like a Christmas miracle, there are a few things to keep in mind before signing the dotted line.

What to consider in a 0% purchase rate credit card

Like any financial product, it pays to do your research and shop around before making a decision. So if you’re about to start comparing 0% purchase rate offers, be sure to:

  • Pick a card with a long 0% interest rate period: Depending on your Christmas budget, you might want to compare the length of the interest-free period. Just remember, the shorter the offer length, the faster you’ll have to pay back the balance to avoid attracting interest. So be sure to choose an option that best suits your spending needs.
  • Establish a tight repayment schedule: Before you decide the appropriate 0% interest period, you’ll first need to establish how long it will take you to pay off the balance by creating a repayment plan. You can do this by playing around with the Mozo Credit Card Debt Payments Calculator
  • Opt for the minimal fee option: Since these types of cards aim to keep costs to a minimum, it makes sense to choose a card that’s light on fees. For instance, if you are looking to do some of your Christmas shopping on international websites, then you might want to pick up a card that has a low foreign exchange fee. 
  • Remember the revert rate: Like we mentioned earlier, once the interest-free period is up, the card will then revert to a purchase rate. If you will continue to use the card once this offer expires, it’s a good idea to sign up to a card with a relatively low revert rate.

What are some hot 0% purchase rate offers at the moment?

Can’t wait to start searching for your handy Christmas companion? Check out a couple of hot 0% purchase rate offers below!

St.George Vertigo Platinum Credit Card
  • 0% interest on purchases for 15 months (then 12.99%)
  • 2020 Mozo Experts Choice Award winner^
  • $49 annual fee in the first year ($99 after)

If you’re keen to pick up a 0% interest credit card, why not choose an award winning one? The St.George Vertigo Platinum credit card was awarded a 2020 Mozo Experts Choice Award for Best Low Rate Platinum Credit Card and it’s not hard to see why. You’ll enjoy zero interest on purchases for up to 15 months, plus a low $49 annual fee in the first year. Once the 15 months are up, the card’s rate then reverts to 12.99%, which is still on the lower end for a credit card.

Bankwest Breeze Mastercard
  • 0% interest for 15 months (then 10.99%)
  • $49 annual fee
  • Multiple payment options

Like the idea of a lengthy interest-free period and an ongoing low annual fee? Then you might want to check out the Bankwest Breeze Mastercard Credit Card! With a 15 month 0% interest free period and a manageable $49 annual fee, your Christmas shopping will be a breeze (pun intended)! And since you’ll have your hands full with multiple presents, thanks to the card’s Apple and Google Pay functionality, you won’t even need to reach into your wallet to pay!

Want to compare more low rate offers? Head on over to our low rate credit card comparison tool!

^More information about 2020 Mozo Experts Choice Credit Card Awards 

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Ceyda Erem
Money writer

Ceyda Erem is Mozo’s authority on Energy, as well as having broader expertise as a personal finance writer. She loves to put her researching and writing talents into stories that help our readers to make more informed financial choices, whether that’s about finding the best energy deal or writing about the latest sneaky bank tricks. Ceyda has a Bachelor of Arts (major in writing) from Macquarie University.