Best interest free credit cards

Finder's best interest-free credit card offers for December

• The Citi Rewards Card - Purchase and Balance Transfer Offer has a Finder Score of 9.9.
• The NAB Low Rate Business Card has a Finder Score of 9.09.
• The Credit Union SA Education Community Credit Card has a Finder Score of 8.02.
• The Credit Union SA Workplace Benefits Credit Card has a Finder Score of 8.02.

Updated December 2024 by Finder's money editor, Richard Whitten.

How we calculate Interest Free Credit Card Finder Scores

Read full methodology

What different scores mean

9+

Excellent

These cards offer the best interest free options - either through a high number of interest free days or no interest on purchases, coupled with low fees.

7+

Great

Reasonable interest free options but may charge higher fees or have a lower number of interest free days.

5+

Standard

These cards may offer a lower number of interest free days or higher annual fees.

0+

Basic

While these cards may offer interest free days on new purchases, they may be more suited to other categories.

This article was fact-checked and reviewed by Nicole Pedersen-McKinnon, an accredited and award-winning finance broker and industry mentor. Content has been updated for 2024.

The lowdown on the interest free Finder score

Every month we carefully analyse over 250 credit card products and assess five features and benefits of each card. We assign a Finder Score out of 10 for each feature, and adjust the scores depending on what category we're looking at.

To be included for the interest free score, credit cards must:

• Be available to general consumers
• Have 0% interest rate (ongoing or offers) on new purchases

Credit card scores are category-specific (e.g. cashback, frequent flyer), meaning the same card will receive a different score within each category.

The score process is run by our insights and editorial team, independent of any commercial partnerships. Products are reviewed objectively. Remember that Finder Score is just one factor to consider. Look at other aspects like fees, features, benefits and risks to make sure a product is suitable for you. Double-check details that matter to you before applying or buying.

Interest-free credit cards - score weightings

Breaking down the score tiers

• 9+ Excellent - These cards offer the best interest free options - either through a high number of interest free days or no interest on purchases, coupled with low fees.
• 7+ Great - Reasonable interest free options but may charge higher fees or have a lower number of interest free days.
• 5+ Satisfactory - These cards may offer a lower number of interest free days or higher annual fees.
• Less than 5 – Basic - While these cards may offer interest free days on new purchases, they may be more suited to other categories.

How can I get an interest free credit card?

There are several ways to get 0% interest on your credit card.

• 0% interest credit cards. You can get a credit card that offers a 0% interest rate permanently. Examples include the NAB Straight Up Card and the Westpac Flex Card. These cards have low credit limits and either charge a monthly fee, or require you to pay off your balance in full each month.
• Credit cards with 0% introductory offers. Quite a few credit cards offer 0% interest on purchases as a special introductory offer. Usually for about 6 months, but some cards go higher. After the intro period you'll start getting charged interest if you haven't paid off your balance.
• Credit cards with interest-free days. Most credit cards offer a number of interest-free days for purchases. Basically, on the first day of your monthly credit card statement period you have up to 45 or even 55 days before interest is charged. You have to pay the balance off before the interest free days are up, or you get charged interest.

0% balance transfer offers

If you have an unpaid credit card balance that's costing you a lot in interest, you can grab yourself some breathing room by moving the debt to a 0% balance transfer credit card offer. This gives you up to 28 months with no interest charges on the balance. But any new spending will get charged interest.

Pros and cons of interest free credit cards

How can I get the best interest free credit card?

1. Use the Finder Score. Use the table above and sort credit cards by Finder Score. We rank interest-free cards based on stacks of data. The higher the score, the better the card.
2. Figure out what kind of interest-free card you need. For most people, the choice comes down to a card with a permanent 0% rate and a monthly fee, or a card with an introductory 0% offer (we'll give you more tips on how to choose in the next section).
3. Look for a card with a long 0% interest offer. Unless you've got some short-term purchases in mind, the longer the introductory period, the better. This gives you more time to make interest free purchases and pay them back.
4. Factor in the cost of fees. Check if the card charges a monthly or annual fee (or both). Factor those in when looking at no-interest cards. Some cards also charge a fee if you don't pay your balance at the end of the month.
5. Keep an eye on the revert rate (if there is one). Cards with 0% interest rate offers revert to a higher rate once the intro period finishes. This can be above 20% in some cases. If you pay off your spending on time, you won't pay interest. But it's worth keeping an eye on.
6. Look at all the card's perks, features and benefits. Some credit cards, even 0% ones, can sometimes let you earn frequent flyer points or other rewards.

Our expert says: How to avoid interest on any credit card

"I've never paid a cent in credit card interest. And it's not because I have a 0% interest card. My credit card has a very high interest rate. But I pay it off on time each month and I never miss a payment. If you do this, any card is interest free. Of course, if you can't pay off a card right away, a 0% card can really save you money. Just make a plan to pay it off. Don't forget and let the debt build up. "

Richard Whitten

Editor

How do I find the right interest-free card for my circumstances?

I'm looking to make a big purchase and pay it off later

A card with a 0% introductory offer could give you 6 months or more before you have to pay the card off.

I want to cover a small amount of monthly spending and I want to pay off my spending in full each month

You could consider a card like the NAB Straight Up, Westpac Flex or the Community First n0w Credit Card. Just keep an eye on any fees, and remember these cards have quite low credit limits (around $1,000).

I have a large credit card debt and the monthly interest charges are killing me

You might want to look at a balance transfer credit card.

Frequently asked questions

• Do I have to make repayments during the interest-free period?

  Yes, you still need to pay at least the minimum amount required by the due date on each statement. This is usually around 2-3% of your account's closing balance, and the exact amount will be listed on your statement.

  As an example, if you spent $3,000 on a credit card with a 3% minimum repayment amount, you'd need to repay at least $90 by the due date on your statement. Paying more than the minimum amount also helps you avoid ongoing debt and costs. You can use Finder's credit card repayment calculator to help figure out how much to pay each month and what's affordable for you.

• What happens if I don't repay my balance on an interest-free credit card?

  If you don't pay at least the minimum amount listed on each monthly statement by the due date, some of the issues you could face include:

  • Late payment fees. If you miss a payment or make it after the statement's due date, you could be charged a late payment fee. Typically, it will cost around $10 to $30 on a standard credit card, or more on a charge card.
  • Cancelled promotional interest rates. The interest-free promotion may be cancelled if you don't make your minimum required payments. This penalty varies depending on the card, so make sure you check the terms of your offer.
  • Bad credit. Payment history is included on your credit report, which means late payments (or more extreme default accounts) could lower your credit score.

  If you're struggling to make a repayment on time, contact your credit card provider as soon as possible so they can discuss repayment options based on your individual circumstances.

• What's the difference between 0% interest credit card offers and interest-free days?

  A 0% purchase rate offer lasts for an introductory period when you first get the new card. During this time, you won't be charged interest on your credit card purchases as long as you pay the minimum amount listed on each statement.

  In comparison, a credit card with interest-free days gives you a period of time in each statement period when you can make purchases without being charged interest. Usually, you need to pay the total amount owed on each statement to be eligible for interest-free days.

• Do interest-free days apply during a 0% purchase promotion?

  For the length of the promotional 0% purchase rate period, standard interest-free days aren't necessary. If your card comes with interest-free days (for example, up to 55 days), you'll be able to take advantage of them when the promotional period ends.

• How does the 0% interest period apply to multiple purchases over time with my credit card?

  With a 0% purchase rate credit card offer, the promotional 0% interest rate is available for a fixed time period. For example, let's say you get a card offering no interest for 12 months on purchases from when you activate the card.

  If you make a purchase on the day you get (and activate) your card, you will have 12 months to pay it off before any interest is charged. If you make another purchase after 3 months, you will have 9 months remaining for the 0% interest period, and if you make a purchase 11 months after getting the card, you'll only have 1 month interest-free for that purchase. After that, the 12-month 0% interest offer will end and the standard purchase rate will apply to new purchases.

• What is the interest rate after the introductory 0% purchase rate period ends?

  The revert rate is different for each credit card. Purchase rates in Australia typically range from around 8% p.a. to 27.99% p.a. in 2024. You can check this rate before you apply – look for details of what the 0% interest rate reverts to at the end of the introductory period or check the Key Fact Sheet made available.

  You could also look at your credit card statement, online account details or contact the credit card company. If you find yourself struggling to pay back what you owe, consider moving your outstanding debt to a 0% balance transfer credit card, which will give you more time to repay it interest-free.

• Which credit card has the longest 0% interest period?

  Introductory 0% interest rate offers change regularly, so there isn't one card that always offers the longest 0% period. In general, the cards on this page usually offer 0% interest on purchases for 6 to up to 15 months. And some balance transfer offers charge 0% interest for up to 28 months.

  You can sort the credit cards by "purchase rate" or "balance transfer rate" in the comparison table above to see which cards offer the longest interest-free period.

• Can you get a credit card without interest beyond the introductory period?

  If you repay the total amount listed on your statement by the due date, you'll typically get an interest-free period for purchases.
  There is also a small range of credit cards in Australia that charge no interest ever, with a flat monthly fee instead, including:

  • CommBank Neo - 0% interest and a $15-$25 monthly fee based on your credit limit
  • Community First n0w - 0% interest and a $9-$19 monthly fee based on your credit limit
  • NAB StraightUp - 0% interest and $10-$30 monthly fee based on your credit limit
  • Westpac Flex - No interest ever and a $10 monthly fee
  • Wizitcard - No interest ever and a $19 monthly fee

• Can you get a 0% interest credit card?

  Yes, many Australian banks and lenders offer 0% interest credit cards, but they are usually for a set period – such as an introductory offer on purchases for 12 months, or on balance transfers for a year or two. The lender's ultimate goal is for you to keep the card after the 0% interest period and eventually start paying interest so they can turn a profit.

• Does a 0% interest credit card impact your credit score?

  A 0% card is the same as any other form of credit, so it can impact your credit score if you miss payments or if you carry high balances from month to month, after the promotional period, and you're paying interest. Managing the card responsibly can benefit your credit score. For a deeper look at how credit cards can impact your finances, check out this guide on how credit cards work.

• Can you get a credit card if you do not have income?

  No, the lender needs to be sure that you are in a position to manage the debt and make your repayments. So, it is challenging to get approved on a new credit card without a stable income. It is possible to get low-income credit cards or secured credit cards if your income supports having a credit card.

• Are interest-free credit cards worth it?

  Interest-free credit cards can be a smart choice if you repay your balance within the promotional period, avoiding interest charges. They also give you the opportunity to build your credit rating and demonstrate that you can manage your debts.

To make sure you get accurate and helpful information, this guide has been edited by Richard Whitten as part of our fact-checking process.

Written by

Sarah Megginson

Head of editorial

As an authority on all things personal finance, Sarah Megginson is passionate about helping you save money and make money. She is an editor and money expert with 20 years’ experience and an extensive background in property and finance journalism. Sarah holds ASIC RG146-compliant Tier 1 Generic Knowledge certification, and she's a regular media commentator, appearing weekly on TV (Sunrise, Channel 7 news, Nine news), radio (KIIS FM, Triple M, 3AW, 2GB, 6PR) and in digital and print media. See full bio

Sarah's expertise

Sarah has written 191 Finder guides across topics including:

• Home loans
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