Australian Credit Cards with 0% Interest: A Guide
Looking for a credit card that offers 0% interest? You're not alone! Many Australians are attracted to the idea of making purchases without paying interest for a period of time.
What are 0% interest credit cards?
These cards offer a promotional period during which you can make purchases and avoid paying interest charges. This can be a great way to manage large expenses, such as home renovations or travel, without accumulating debt.
How do they work?
0% interest credit cards typically have a promotional period that lasts for a specific length of time, usually between 6 and 24 months. During this period, you'll only pay a minimum repayment amount, and no interest will be charged on your purchases. After the promotional period ends, standard interest rates apply.
Things to consider when choosing a 0% interest credit card:
- Promotional period: Pay attention to the length of the promotional period. Choose a card with a timeframe that suits your needs.
- Interest rate after the promotional period: Understand the interest rate you'll be charged once the promotional period ends.
- Fees: Look out for annual fees, balance transfer fees, and other potential charges.
- Eligibility criteria: Make sure you meet the eligibility requirements for the credit card before applying.
Here are some things to keep in mind when using a 0% interest credit card:
- Pay your balance in full before the promotional period ends: This will prevent you from incurring interest charges.
- Avoid using the card for everyday purchases: Limit your use to large expenses you need time to pay off.
- Don't rely on the 0% period to pay off existing debt: Use it to manage a specific purchase, not to consolidate your existing debt.
Alternatives to 0% interest credit cards:
- Balance transfer credit card: These cards allow you to transfer your existing debt from another credit card to a card with a lower interest rate.
- Personal loan: A personal loan can offer a fixed interest rate and a set repayment period.
The bottom line:
0% interest credit cards can be a helpful tool for managing large expenses. However, it's crucial to use them responsibly and avoid falling into debt. Make sure you understand the terms and conditions and choose a card that suits your needs.
