Enjoy the freedom of buying now and paying later. Compare credit cards with 0% on purchases for up to 15 months here.
A 0% purchase rate on your credit card lets you spend money on the card with zero interest payable for a promotional period. The 0% interest rate can either run for a number of days per statement cycle (typically between 44 and 55) or for a fixed number of months (typically between 3 and 15).
This guide explains the benefits of 0% purchase credit cards, how they work and how to compare the different offers in the market. It also answers the most popular questions about 0% purchase credit card deals.
Compare the different types of 0% Purchase Credit Cards in the market
What is a 0% purchase credit card?
Credit card offers with 0% on purchases allow you to make purchases and pay zero interest on them. These offers vary from up to 44 days interest-free to 15 months interest-free.
How is this different to a regular credit card?
While a standard credit card typically has an interest rate between 13% and 20% p.a. applied to purchases, a 0% card offers zero interest on all eligible purchases made during the promotional period.Back to top
How to compare 0% purchase credit cards
There are many 0% purchase credit card offers on the market, so it’s important to compare your options to find the right one for you. Some of the features you should consider include:
- Introductory 0% interest rate term. The longer the promotional period, the lower the potential interest. Make sure you can repay any outstanding balance before the end of the promotional period, as otherwise you’ll start accruing interest.
- Revert purchase interest rate. If you’re unable to pay your balance in full by the end of the introductory period, your purchases will begin attracting the standard purchase rate. Depending on the card, this will typically be between 13% and 20%. If you have a balance remaining after the 0% promotional period, you can potentially repay this amount interest-free by switching to a balance transfer credit card.
- Interest-free days. Many cards offer interest-free days on purchases for a set period (usually up to 55 days). While the 0% on purchases is a temporary offer only available over the promotional period, interest-free days are usually a permanent feature of the card. If you intend to use your card beyond the 0% promotional offer, you’ll need to repay your balance in full each month to take advantage of the interest-free days.
- Annual fee. Most 0% purchase cards charge an annual fee. To determine whether the card is worth the cost, consider how much you’ll save with the 0% interest offer and the other perks on offer to see whether the benefits outweigh the cost. If not, you’ll want to consider another card.
- Extra benefits. Does the card come with complimentary travel insurance? Will your purchases be covered by purchase protection and extended warranty? Can you access a 24/7 concierge service? If you will be using the card for more than just the 0% offer, comparing these features can help set the cards apart.
Types of 0% purchase credit cards and extra features
|0% purchase offer type||Benefits|
|Standard 0% purchase offer||Includes the 0% promotional purchase rate for a specified promotional period, which will revert back to the standard purchase rate once the offer has ended. Extra benefits may also be available such as interest-free days, travel benefits and complimentary insurances.|
|0% purchases with frequent flyer benefits||Earn frequent flyer points for every dollar spent on your card.|
|0% purchases with balance transfer offers||This type of card allows you to transfer and repay your existing credit card debt interest-free whilst also making purchases with zero interest.|
|0% purchases with rewards benefits.||Pay no interest on your purchases and earn rewards points for every dollars you spend. Redeem for various rewards including flights and shopping.|
4 common mistakes to avoid with 0% purchase credit cards
- Ignoring the revert rate. At the end of the promotional period, the 0% interest rate will revert to the standard purchase rate (which usually sits between 13% and 20%). Consider the revert interest rate before applying for the card so you understand how your debt will grow if you fail to repay your balance before the revert rate kicks in.
- Only paying the minimum repayment. You’ll be required to make minimum repayments, usually 2% or 3% of the total balance, each statement period. However, if you only match the minimum amount each month, you’ll be unable to repay your entire balance when the 0% offer finishes. If you pay more than the minimum repayment, you’ll have a much better chance of repaying your balance before the revert rate applies and you start paying a higher interest rate. If you’re unable to repay your balance before the 0% purchase offer ends, a balance transfer might be the next step.
- Ineligible transactions. The 0% offer only applies to eligible purchases. If you use your card for balance transfers, cash advances, government payments or other cash- equivalent transactions, they’ll usually be charged at the standard rate unless a promotional offer applies.
- Not taking advantage of the entire offer period. The 0% offer is available as soon as your card is approved, not from when you make your first purchase. So if your card offers a 0% offer for six months but you don’t make a purchase or any repayments for the first month, you’ll only have five more months to take advantage of the offer. If you have a big purchase in mind, make it as soon as possible to ensure you get maximum value out of the offer length.
The most popular questions about 0% purchase offers from our users
Does the 0% purchase offer apply for overseas purchases/ on holiday?
Overseas purchases will not be charged any interest during the promotional period. However you may be charged foreign currency conversion fees. You can compare credit cards which do not charge currency conversion fees in our detailed guide.
How many purchases will receive the 0% interest rate?
All purchases made during the promotional period will not be charged any interest (you can make purchases up to your approved credit limit). 0% purchases can be made from when you activate the card to the end of the promotional period.
When does the 0% purchase promotion start?
The 0% promotion will begin either when your credit card application is approved or upon credit card activation, depending on the bank. It generally will take 3-5 business days for your card to be mailed to your address after application approval.
What types of transactions are eligible to receive 0% interest?
Your transactions need to qualify as an “eligible purchase” to be covered under the 0% purchase promotion. Eligible purchases are generally defined as everyday purchases which involve the exchange of a good or service for a payment. Transactions that do not qualify as eligible purchases generally include the following: business expenses, gambling transactions and cash advances. If you are unsure about whether your transaction will qualify, contact your bank directly for clarification.
What is the interest rate after the 0% promotional period?
After your 0% purchase promotion has finished, the balance outstanding on purchases made will be charged interest at the regular purchase rate, usually known as the “revert rate”. You can consider moving your outstanding purchase amount/ debt to a balance transfer credit card which might allow you to repay your debt interest free.
Do interest-free days apply during a 0% purchase promotion?
During the entire 0% purchase promotion period, interest-free days will not apply since no interest is charged on purchases during the promotion.
Do I have to make any repayments with a 0% purchase promotion?
Yes. You must make the minimum monthly repayment of the credit card even with a 0% purchase promotion available. This repayment is generally around 2-3% of the full outstanding balance, or a set dollar amount if the outstanding balance is below a certain level (often $25).
Can I pay my bills or government payments with no interest cards?
Banks generally exclude bill and government payments from eligible purchases so they will not receive 0% interest. If you would like to inquire further, contact your bank’s customer service team directly.