Interest free credit cards

Yes, no matter what type of interest-free credit card you choose, you will still need to pay at least the minimum amount required by the due date on your statement. The minimum amount will be listed on your statement and is usually around 2–3% of your account's closing balance, with a minimum dollar charge of around $20 – $30 (although sometimes these minimum amounts could be higher).

If you want to avoid ongoing debt and interest costs, you should pay more than the minimum amount whenever you can afford to do so. You can use Finder's credit card repayment calculator to help figure out how much to pay each month.

With any credit card, you need to pay at least the minimum amount listed on each monthly statement by the statement's due date. If you don't, some of the issues you could face include:

• Late payment fees. If you don't make a payment by the statement due date, a late payment fee may be applied. This can be $10 to $30 on a standard credit card, or more on a charge card.
• Cancelled promotional interest rates. If you don't make your minimum required payment, the interest-free promotion may be cancelled. This penalty varies depending on the card, so make sure you check the terms of your offer.
• Bad credit. Failing to make repayments could have a negative impact on your credit history – especially if your account goes into default.

If you're struggling to make a repayment by the due date on your statement, it's important to contact your credit card provider as soon as possible so they can discuss repayment options based on your individual circumstances.

There is no one best interest-free credit card as the right one for you will depend on your financial position and what you plan to use it for. You can find a card that works for you by comparing features including the type of 0% offer, how long the interest-free period lasts, the revert rates that apply after the offer ends as well as any other fees or features that apply.

Credit cards also have eligibility criteria (such as credit history and minimum income requirements), so make sure that you check if you meet these before applying.

Yes – as long as the promotional 0% interest rate applies (and the card is accepted overseas), your overseas purchases won't attract any interest. You may be charged a foreign transaction fee when you make a transaction in an international currency, though. Any transactions that don't count as purchases (such as withdrawing cash from an ATM or buying foreign currency) will be charged interest at the cash advance rate for your card.

A 0% purchase rate offer lasts for a limited amount of time from when you first get the new credit card. During this introductory period, you won't be charged interest on 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 window 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.

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

Once you've activated the credit card, all eligible purchases that you make will be 0% interest until the end of the promotional period. However, any purchases that haven't been repaid by the end of the introductory period will collect interest after that.

Credit card annual fees are usually not considered eligible purchases. So if you get a promotional 0% purchase rate credit card that also has an annual fee, you'll probably be charged interest on that part of your balance. You can contact a credit card provider to find out if this fee would be eligible for a particular interest-free promotion.

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, while if you make a purchase 11 months after getting the card, you'll only have 1 month interest-free for that purchase. After that, your 12-month 0% interest offer will end and the standard purchase rate will apply to new purchases.

The quickest way to check when the introductory period ends is to look at your credit card statement or call your credit card provider and ask for the exact date that the 0% p.a. purchase rate period will end.

If you haven't applied for a 0% p.a. purchase rate card yet, you can check how long the introductory period is by looking at the advertised offer. For example, a card might give you 0% p.a. on purchases for 6 months, which means the introductory period would last for the first 6 months from when you get the card, or from the date you're approved for the card.

After your 0% purchase promotion has finished, the outstanding balance will be charged interest at the card's regular purchase rate, usually known as the "revert rate". Make sure you check this interest rate before you apply. If you find yourself struggling to pay back what you owe, you can consider moving your outstanding debt to a 0% balance transfer credit card, which will give you more time to repay it interest-free.

As of 3 September 2021, Finder's database shows that the longest 0% interest period for purchases is 17 months, offered on the ANZ Platinum Credit Card.

In general, the cards on this page usually charge 0% interest on purchases for 3 to 17 months. You can sort the credit cards by "purchase rate" in the comparison table above to see which cards offer the longest interest-free period.

While you could be able to use your card to pay for utilities and government payments, these transactions are sometimes listed as ineligible for the 0% introductory interest rate offer. Check the offer details or contact the credit card company directly to confirm what types of transactions are eligible.