interest free credit cards

Compare Australian Interest Free Credit Cards

Interest free credit cards sound too good to be true. There are however ways to pay little or no interest on your credit card, by taking advantage of promotional and interest free periods. Interest free credit cards basically give you the flexibility to spend money on credit (and possibly earn rewards points) and pay no interest for a period of time. Compare interest free credit cards below.

Fact Checked

Interest free credit card comparisons on Mozo - last updated 20 January 2022

Search promoted credit cards below or do a full Mozo database search. Advertiser disclosure
  • Apply By 28 Feb 2022
    Bendigo Bank Low Rate Credit Card

    0% p.a. on purchases for up to 18 months (Reverts to 11.99% p.a). Low annual fee of $45 and no fees for additional cardholders.

    Balance transfer rate
    Purchase rate
    Annual fee
    No current offer
    0% p.a. for 18 months then 11.99% p.a.
    $45
    Compare
    Details
  • Bendigo Bank Platinum Rewards Credit Card

    Earn 1.5 Bendigo Rewards points for every dollar spent (T&Cs apply). Up to 55 days interest free, comprehensive travel insurance, purchase protection and extended warranty.

    Balance transfer rate
    Purchase rate
    Annual fee
    No current offer
    0% p.a. for 12 months then 19.99% p.a.
    $89
    Compare
    Details
  • NAB StraightUp Card

    Pay no interest and no late payment fees, just a $10 monthly fee for a $1,000 credit limit. Plus, if you don't make any purchases and have an outstanding balance of $0 during the whole statement period, the monthly fee will be reversed. Also pay no foreign currency fees when you shop online or overseas. Mozo Experts Choice Credit Card Innovation Winner 2020^.

    Balance transfer rate
    Purchase rate
    Annual fee
    No current offer
    0% p.a.
    $120 $10/month - waived if no spend & no balance owing
    Compare
    Details
  • BankSA No Annual Fee

    0% p.a. for 12 months on APR requested at card application. The special promotional purchase rate applies from card approval, after the promotional period, the rate will switch to the variable purchase rate. New cards only, Eligibility criteria and T&Cs apply. Offer ends February 24th 2022.

    Balance transfer rate
    Purchase rate
    Annual fee
    No current offer
    0% p.a. for 12 months then 20.74% p.a.
    $0
    Compare
    Details
  • NAB StraightUp Card

    No interest and no late payment fees, just a $15 monthly fee for a $2,000 credit limit. If you don't make any purchases and have an outstanding balance of $0 during the whole statement period, the monthly fee will be reversed.

    Balance transfer rate
    Purchase rate
    Annual fee
    No current offer
    0% p.a.
    $180 $15/month - waived if no spend & no balance owing
    Compare
    Details
  • Hot Deal Enjoy invitations to exclusive Card Member sales previews, shopping nights and events.
    David Jones American Express Card

    Earn 50,000 Membership Rewards Points or 25,000 Qantas Points when you apply online by 9 February 2022, are approved and spend $1,500 at locations excluding David Jones on your new Card within the first three months. Plus, enjoy 0% p.a. on purchases for 12 months. Available to new David Jones American Express Card Members only.

    Balance transfer rate
    Purchase rate
    Annual fee
    No current offer
    0% p.a. for 12 months then 20.74% p.a.
    $99
    Compare
    Details
  • Bankwest Breeze Mastercard

    Enjoy 0% p.a on balance transfers for 15 months then 9.90% thereafter. No annual fee for the first year. Limited time only. Other fees, T&Cs apply. New Breeze Mastercard customers only.

    Balance transfer rate
    Purchase rate
    Annual fee
    0% p.a. for 15 months and then 9.90% p.a.
    0% p.a. for 15 months then 9.90% p.a.
    $49 $0 in the first year
    Compare
    Details
  • Virgin Money Low Rate Card

    Receive a low 11.99% p.a purchase rate. 0% p.a on balance transfers for the first 15 months (1% BT fee applies). Get tap and pay feature, plus 55 days interest free. Loyal card holders could see annual fee waived in 2nd year (conditions apply).

    Balance transfer rate
    Purchase rate
    Annual fee
    0% p.a. for 15 months and then 21.69% p.a. (1.00% balance transfer fee)
    11.99% p.a.
    $99
    Compare
    Details
  • Mozo Expert Choice Badge
    American Express Low Rate Credit Card

    Competitive low rate with $0 Annual Fee. Offers purchase and refund protection. Customers need an annual income of $50,000 or more.

    Balance transfer rate
    Purchase rate
    Annual fee
    No current offer
    8.99% p.a.
    $0
    Compare
    Details
  • NAB StraightUp Card

    Pay no interest and no late payment fees, just a $20 monthly fee for a $3,000 credit limit. If you don't make any purchases and have an outstanding balance of $0 during the whole statement period, the monthly fee will be reversed. Pay no foreign currency fees when you buy online or overseas. Mozo Experts Choice Credit Card Innovation Winner 2020^.

    Balance transfer rate
    Purchase rate
    Annual fee
    No current offer
    0% p.a.
    $240 $20/month - waived if no spend & no balance owing
    Compare
    Details
  • Apply By 9 Feb 2022
    David Jones American Express Platinum Card

    Earn 70,000 Membership Reward Points or 35,000 Qantas Points when you apply online by 9 February 2022, are approved and spend $1,500 at locations excluding David Jones on your new Card within the first three months. Available to new David Jones American Express Platinum Card Members only.

    Balance transfer rate
    Purchase rate
    Annual fee
    No current offer
    0% p.a. for 12 months then 20.74% p.a.
    $295
    Compare
    Details
  • Apply By 24 Feb 2022
    St.George Vertigo - Low Rate 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. Offer ends February 24th 2022.

    Balance transfer rate
    Purchase rate
    Annual fee
    No current offer
    0% p.a. for 18 months then 13.99% p.a.
    $55 $0 in the first year
    Compare
    Details
  • Apply By 24 Feb 2022
    Bank of Melbourne Vertigo - Low Rate 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. Offer ends February 24th 2022.

    Balance transfer rate
    Purchase rate
    Annual fee
    No current offer
    0% p.a. for 18 months then 13.99% p.a.
    $55 $0 in the first year
    Compare
    Details
  • 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.

    Balance transfer rate
    Purchase rate
    Annual fee
    0% p.a. for 28 months and then 21.49% p.a. (1.00% balance transfer fee)
    13.74% p.a.
    $59 $0 in the first year
    Compare
    Details
  • Apply By 9 Feb 2022
    David Jones American Express Card

    Receive 25,000 Qantas Points or 50,000 Membership Rewards Points when you apply online by 9 February 2022, are approved and spend $1,500 at locations excluding David Jones on your new Card within the first three months. Available to new David Jones American Express Card Members only.

    Balance transfer rate
    Purchase rate
    Annual fee
    No current offer
    0% p.a. for 12 months then 20.74% p.a.
    $99
    Compare
    Details
  • Apply By 24 Feb 2022
    BankSA Vertigo - Low Rate 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. Offer ends February 24th 2022.

    Balance transfer rate
    Purchase rate
    Annual fee
    No current offer
    0% p.a. for 18 months then 13.99% p.a.
    $55 $0 in the first year
    Compare
    Details
Search now

^See information about the Mozo Experts Choice Credit cards 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.

Credit card providers we compare at Mozo

Save with deals from the following well-known brands and many more...

See all credit card providers

Credit card resources

Reviews, news, tips and guides to help find the best credit card for you.

FAQ

Interest free credit cards

Show transcript

So, what’s the go with… credit card interest-free days?

Credit card interest-free days are a set number of days (usually 44 or 55) in which you don't have to pay interest on credit card purchases.

Interest-free days start at the beginning of your credit card statement period & you’ll get the same number of interest-free days each period ...as long as you pay your balance off in full & on time each month!

Right. So, how do they work?

If you make a purchase on the 1st day of the interest-free period… then you'll have the maximum number of interest-free days to pay your credit card balance off in to avoid interest charges. But, if you make a purchase in the middle of the interest-free period… then you’ll only have half the time to pay it off in to avoid interest charges.

Here's an example for the visual learners:

Say you take out a new credit card which offers 44 interest-free days. On day 1 of the statement period, you buy a new pair of $200 shoes. To avoid paying interest, you’ll need to pay your credit card balance off within 44 days.

Then on day 26, you buy a $300 portable speaker. Which means… you'll only have 18 interest-free days left to pay it off in to avoid interest charges. Make sense?

Ok. But, what happens if I don’t pay my credit card balance off in full? Well, it's simple. You’ll lose your interest-free days for the next month & have to pay interest on your purchases. ...But don’t worry, you can get them back!

How do I get my interest-free days back if I lose them? Just pay your credit card debt off in full… & your new interest-free period will start from the day your balance is paid!

Ever wondered whether interest-free credit card deals are all they're cracked up to be? Have a read of our quick guide which will run you through the different types of 0% interest offers available and the tricks to use these cards like a pro.

How does an interest free credit card work?

0% purchase rate credit cards:

Need an interest-free credit card to pay for a big upcoming expense like a wedding or small home refresh? Or, maybe you’re after one to help get you through the holiday season? Then it sounds like you could be in the market for a credit card with a 0% purchase rate deal!

With a 0% purchase rate credit card, as long as you meet the minimum repayments each statement period, then all purchases you make (excluding ATM withdrawals) will be interest-free for a set period of time.

0% balance transfer:

If you want to blast some debt, then the interest-free credit card option you might consider is a balance transfer offer.

Say that you've got some credit card debt, but you're struggling to pay it off because your current card has a high-interest rate. 

Well, with a balance transfer (BT) offer, you can move your balance across to a different provider and be charged no interest for the balance transfer period, which usually ranges from 3-12 months (some as much as or over 20 months).

Check out our top tips on how to make a balance transfer card work for you.

0% foreign transaction credit cards:

If you’re looking to make overseas purchases without copping high-interest charges, then unless you’re going with a trusty travel credit card, you might consider picking up a 0% foreign transaction credit card.

Debit cards:

While technically not a credit card, debit cards are linked to either Visa or Mastercard network which means that you can use them wherever these cards are accepted. The beauty of opting for a debit card is that you’re spending your own money, so you won’t cop any interest charges for borrowing money from the bank.

What are interest free days?

Did you know that most credit cards usually come with either 44 or 55 interest-free days?

This means that if you diligently pay the full amount you spent during the statement period by the due date, you won't be charged any interest ever.

Your interest-free period will begin at the start of your credit card statement period. As long as you pay your balance off in full each month by the due date, you’ll get the same amount of interest-free days each statement period.

How do interest-free days work?

Here’s where things can get a bit tricky. To put it simply, you don’t necessarily have the same amount of interest-free days to pay each credit card purchase off in.

If you make a purchase on the first day of the interest-free period, then you'd have the maximum number of interest-free days to repay your credit card balance to avoid being charged interest.

But if you make a purchase in the middle of the interest-free period, then to dodge any interest charges, you’d need to pay your credit card balance within half the time.

How many interest-free days do credit cards have?

While your credit card might come with 44 or 55 interest-free days in total, this does not mean that you’ll have that many days to pay each purchase off from the purchase date.

Scenario:

You take out a new credit card which offers 44 interest-free days. On the first day of your credit card statement period, you go and treat yourself to a new pair of $200 shoes. To avoid paying interest on the shoes, you’ll need to pay your credit card balance off within 44 days.

Then, on the 26th day of your credit card statement period, you spoil yourself to a new $300 portable speaker. Since you bought the speaker on the 26th day of the statement period, unless you want to be charged interest, you’ll only have 18 interest-free days left to pay the speaker off in.

Balance transfer offers and interest free days

Please be aware that interest-free days don’t usually apply if you’ve taken up a balance transfer offer, though this isn’t always the case for all providers.

Some providers actually offer 0% interest on balance transfers in addition to an interest-free period on new credit card purchases. So it’s always wise to double-check the PDS (that’s short for Product Disclosure Statement) just to be sure.

What happens if I don’t repay my credit card balance in full?

If you don’t pay your credit card balance off in full before the interest-free period ends, you won’t just be charged interest on the purchases you’ve made, you’ll also lose the privilege of having interest-free days for the next month.

How do I get my interest-free days back?

All you need to do to get those interest-free days back is pay your credit card debt off in full and your new interest-free period will commence from the day your balance is repaid.

Top interest free credit card tips:

While interest-free credit cards are a great way to ditch sky-high interest rates, there are some rules to follow to ensure you use the card to your advantage without falling into credit card debt. Here are some of our top tips:

1. Set a budget

Whether you're looking to use an interest-free credit card to make purchases or as a way to ditch debt, it's super important to set and stick to a solid budget.

0% Purchase rate: While you'll be free of interest for a set period, make sure to only spend what you can afford to repay before the interest-free period comes to an end. The best way to avoid spending above your means is to set a solid budget that you can stick to.

0% Balance transfer:

Before you take out a balance transfer deal, first, you need to determine exactly how much you'll need to repay each month because just paying the minimum won't necessarily clear the debt within the balance transfer period.

For instance, with a 10-month balance transfer offer and a $5,000 debt you would need to repay $500 a month to clear the debt within the balance transfer period.

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

Think about how long you'll 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 pretty popular in Australia, but when you consider Mozo's database shows 0% purchase rate terms ranging from 3-24 months, make sure you find a term option that suits you best.

The same goes if you're looking to roll your debt across to a balance transfer card, as you'll need a term that you can realistically repay the balance off in before the BT offer reverts to a higher rate.

Have a play around with our credit card debt payments calculator to get an idea of which term would suit you best.

3. Look for a low annual fee

When you start your search for an interest-free credit card, you shouldn't just search for one with the longest term, you'll also want to find one with an affordable annual fee.

Think about it, what's the point in going for an interest-free card if the benefit is negated by a pricey ongoing fee?

4. Check the revert interest rate

If you plan on keeping 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 ongoing interest rate, ideally one that's below 15%.

5. Set up automatic repayments

Once you've got the card in your pocket, you can make your repayments a total breeze by setting up a regular direct debit from your bank account to the lender. This way you can avoid missing repayments.

6. Avoid cash advances

Remember, the 0% offer only applies to purchases or the balance transfer. So if you withdraw cash from an ATM you'll cop a cash advance rate, which, according to the Mozo database, usually sits above 20%.

On top of this, interest-free days don't apply for cash advances, so you'll be charged that interest instantly.

7. Pay your balance off before the interest-free period ends

This tip may be last on our list but it is probably the most important! Paying off your balance in full within the introductory period means you can enjoy an interest-free period.

This can come in handy if you need to fund a big-ticket item or pay off any debt.

Where can I find great-value interest free credit cards on Mozo?

Think you've got a handle on how to use an interest-free card the right way? Then start comparing deals in the table above or you can search our entire product database by using our credit card comparison tool, or check out our new guide on the best credit cards

Alternatively, if you're looking to blast some debt, then use our Switch & Save Calculator to see how much you could save by transferring your debt over to an interest-free deal today!

Picture of JP Pelosi
JP Pelosi
Managing editor

Jean-Paul (JP) Pelosi is an experienced journalist and editor who has contributed to many of Australia's leading media outlets including The Guardian, News.com.au, Domain.com.au, Investment Magazine and ANZ's Bluenotes. He has also edited news and communications for large financial services companies such as CommBank, Suncorp, Allianz and Amex. He loves a well told story and applying his editorial experience to content that readers both care about and enjoy. JP heads up our writing team.

Credit Card Reviews

28 Degrees Credit Card
Overall 1/10
They do not care about customers!

If you get into financial hardship bad luck, they don't give a damn and will not help you even in the short term, they simply do not care! They are quick to charge you hefty fees though they are very good at that.

Read full review

If you get into financial hardship bad luck, they don't give a damn and will not help you even in the short term, they simply do not care! They are quick to charge you hefty fees though they are very good at that.

Price
1/10
Customer service
1/10
Trust
1/10
Less
Julie, Victoria, reviewed 7 days ago
ANZ Frequent Flyer Platinum
Overall 2/10
Corporate corruption at its best.

Exceptionally ridiculous interest rates, no customer service Australian bank withe big advertising and using Australian sentiment but with call centres in the Philippines be prepared to wait 45 minutes to an hour to talk to a foreigner. They love to charge overdue fees so wont let you now if your two days late or something else happens I've been in debt to them for 25 years never done me any favours and I've paid them 100,000$ in interest.

Read full review

Exceptionally ridiculous interest rates, no customer service Australian bank withe big advertising and using Australian sentiment but with call centres in the Philippines be prepared to wait 45 minutes to an hour to talk to a foreigner. They love to charge overdue fees so wont let you now if your two days late or something else happens I've been in debt to them for 25 years never done me any favours and I've paid them 100,000$ in interest.

Price
2/10
Features
5/10
Customer service
3/10
Convenience
2/10
Trust
3/10
Less
Peter, New South Wales, reviewed 16 days ago
NAB Credit Card
Overall 10/10
i wont change my provider and my bank has been my

Our money provider for over 40 years and I want no other ever.

Read full review

Our money provider for over 40 years and I want no other ever.

Features
10/10
Customer service
10/10
Convenience
10/10
Less
Cliff, Queensland, reviewed 16 days ago

More credit card reviews