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

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!

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