Compare Australian Interest Free Credit Cards

Interest free credit cards get a lot of, well, interest from financially savvy types. Basically, they give you the flexibility to spend money on credit (and possibly earn rewards points) and pay no interest at all, for a certain period of time.

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How do interest free credit cards work?

Interest free credit cards are offered to new customers as an incentive for switching credit cards. Some credit cards will have interest free rates for purchases but you can also get intro rates when you transfer a balance from another credit card. A 0% purchase rate, for example, lets you make purchases on your credit card without a charge for a set period of time.

Are there any tricks and traps with interest free credit cards?

There are indeed. Some cards will revert to high cash advance rates for balances not paid off within the interest free period. And most cards don't apply the intro period to such things as cash advances.

Page last updated December 18, 2018

Interest free credit card comparisons on Mozo - rates updated daily Mozo has robust processes to ensure our site is updated to reflect the latest information from providers. There may be the odd occasion where updates are delayed, so please confirm information before purchasing.

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Interest free credit cards

Most of us will have seen the ads that flash on the TV promising an enticing interest free purchase or balance transfer offer. And who doesn't like the sound of 0% spending or paying off debt free of the pressure of interest?

But if you're wondering if these interest free deals are all they're cracked up to be, read our quick guide that will run you through the types of 0% offers available and the tricks to use these cards like a pro.

What types of interest free credit cards are available? 

0% purchase rate: Are you looking for a credit card that comes with no interest, to pay for some upcoming costs like your wedding, small home refresh or simply to get you through the Christmas holiday season? If you answered yes then you are in the market for a 0% purchase rate deal, which means all purchases you make on the card (excluding ATM withdrawals) will be free of interest for a set period, as long as you pay the minimum repayment amount each month.

0% balance transfer: If blasting  debt for good is on your mind then your interest free match will be a balance transfer offer. Say you have debt that you're struggling to pay off on your current credit card with a high interest rate, with a BT deal you can move your balance across to another provider and be charged no interest for the BT period that usually ranges from 3 to 12 months (some even reach up to 20 months). Here are our tips on making a balance transfer card work for you.

Interest free days: Did you know that most credit cards also come with 44 or 55 interest free days? This means that if you diligently pay the amount you spent during the statement period by the due date, you won't be charged any interest ever.

Are there any Interest free credit card tips?

While interest free credit cards provide a great holiday from sky high credit card rates, there are some rules to follow to ensure you use the card to your advantage, without falling into debt.

Here are our top tips:

1. Budget

Whether you're looking to use an interest free card for purchases or are seeking to ditch debt, it's important to set a budget.

Purchase rate: While you'll be free of interest for a set period, make sure you only spend what you know you can afford to repay before the interest free period comes to an end. The best way to ensure you don't spend out of your means is by setting a budget that you can stick to.

Balance transfer: Before you take out a BT deal you'll need to determine how much you need to repay each month because just paying the minimum won't clear the debt within the balance transfer period. For instance, with a 10 month BT offer and a $5,000 debt you would need to repay $500 a month.

2. Choose the right term (3, 6 or 12 months interest free)

Think about how long you need the interest free period for. This is especially important if you're planning to use the interest free card for long term expenses. 12 month interest free credit cards are extremely popular in Australia, but when you consider Mozo's database shows 0% purchase rate terms range from 3 to 24 months, you're sure to find a term to suit you.

The same goes if you're looking to roll your debt across to a balance transfer card, as you'll need a timeframe that will ensure the balance is fully paid off before the BT offer reverts to a higher rate. Have a play with our debt payments calculator to get an idea of the type of term that would suit you.

3. Look for a low annual fee

When you start your hunt for an interest free card don't just search for a lengthy term, also make sure you check what the annual fee is because what's the point of signing up with an interest free card, if the benefit is negated by a pricey ongoing fee?

4. Check the revert rate

If you want to keep the plastic in your pocket after the interest free period comes to an end, it's worth checking that the card reverts to a competitive rate under 15%.

5. Set up automatic repayments

Once you have the card in your pocket, make payments a breeze by setting up a direct debit from your bank account to the lender.

6. Avoid cash advances

The 0% offer only applies to purchases or the balance transfer. So if you withdraw cash from an ATM you will be charged the cash advance rate, which Mozo's database shows is commonly above 20%. On top of this, interest free days don't apply for cash advances, so you will be charged that interest immediately.

7. Pay off the balance before the interest free term ends

This tip may be last on our list but it is probably the most important. By paying off the balance in full within the introductory period you will come out as the winner, enjoying an interest free period to fund a big ticket item or pay off debt.

How can I find the best deals on Mozo?

Think you've got a handle on using an interest free card the right way? Then start comparing deals in the table above or search our whole database using our credit card comparison tool. Alternatively, if you're looking to blast your debt use our Switch & Save Calculator to see how much you could save by transferring your debt to an interest free deal today.

Credit Card Reviews

NAB
NAB Rewards Classic Card credit card review
Overall
9/10
Nice customer service, needs better rates

Slow customer service. Takes a while. Otherwise good employees. Needs better pricing and free...

Slow customer service. Takes a while. Otherwise good employees. Needs better pricing and free bank cards. IVR is a bit complicated. Also needs cashless withdrawal.

Price
8/10
Features
6/10
Customer service
6/10
Convenience
7/10
Trust
10/10

Sunpreet | New South Wales

reviewed 5 days ago

NAB
NAB credit card review
Overall
8/10
Competitive rates

National Australia Bank is solid.

National Australia Bank is solid.

Price
8/10
Features
8/10
Customer service
8/10
Convenience
9/10
Trust
9/10

Chris | Queensland

reviewed 5 days ago

Bendigo Bank
Bendigo Bank Low Rate Mastercard credit card review
Overall
9/10
Customer Service - superb, low premiums

I like the support, time and effort that the staff provide, supplying information and answering...

I like the support, time and effort that the staff provide, supplying information and answering questions in a friendly and pleasant manner. I found that the Bank may have over-reacted to the possibility of fraud. They sometimes queried small payments of $1 or $2, and closed the account until I had responded. On the other hand they did not want me to be caught out with scams, and helped out with thorough investigation and repayment when fraud was involved. This intense support was never judge-mental or patronising. Instead it was very encouraging.

Price
8/10
Features
7/10
Customer service
10/10
Convenience
6/10
Trust
9/10

Max | Victoria

reviewed 5 days ago

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