Pay no interest for 6 months or more with interest-free credit cards
You can enjoy 6 months interest free on purchases and balance transfers by taking advantage of 0% introductory interest free credit cards. In this guide we explain how 6 month interest free credit cards work and answer the most commonly asked questions when applying for this type of credit card offer.
Interest-free credit card comparison
Frequently Asked Questions about 6 month interest-free credit cards
How will a credit card with 6 months interest free benefit me?
Considered as a ‘shorter term’ offer, credit cards with 6 months interest free provide you with a period of interest-free purchasing, balance transfers or both. This can allow you to manage your finances and repay any outstanding balances with no interest.
Which transactions will qualify for no interest?
Only eligible purchases will receive 0% interest. Eligible purchases are everyday purchases and exclude cash transactions.
Keep in mind that using your credit card to withdraw cash from ATMs may result in those amounts being charged interest. There are some bills you may wish to pay that can be classified as cash transactions as well, along with transferring money from your credit card account over to a different bank account.
Any cash transaction made using your card will attract interest rates at the cash advance interest rate. If you’re serious about maintaining a true interest free credit card, you’ll benefit by keeping your card aside to pay for purchases only. If you really need to withdraw cash, find ways to use your own cash instead.
Types of credit card interest
- Purchase interest. Charged on transactions which qualify as eligible purchases (exclude cash withdrawals and cash equivalent transactions).
- Balance transfer interest. The interest rate charged on an outstanding amount that has been transferred to a new credit card.
- Cash advance interest. Charged on cash withdrawals and cash equivalent transactions including ATM withdrawals, gambling transactions and bill payments which do not qualify as purchases (this depends on the agreement between your billing provider and the bank).
How does the 6 month interest free deal work?
Your monthly statement will outline exactly how long each purchase amount has left to run on the interest free status. This allows you to always see exactly how much you need to pay off – and when – before those interest charges are due to apply.
Always be sure you keep a close eye on your monthly statements. This will help you keep track of your payment dates and amounts, which reduces the risk of you falling behind on any payments.
What happens when the interest-free promotion has ended?
After the interest-free promotion has ended, any balance outstanding (purchases or balance transfers) will be charged at the revert interest rate which is much higher (usually 17.99-20.99% p.a.). This can result in a large amount of debt if the outstanding amount is not repaid quickly.
Do I have to make any repayments with an interest free offer?
One of the most common misunderstandings many customers have with the 6 month interest free offer is that they also believe they won’t have to make any payments. This simply isn’t true.
Credit cards require you to make at least the minimum monthly repayment due every month (typically 2-3% of the entire outstanding balance). Your payment is always due on or before the date shown on your statement.