Balance Transfer Offers
A balance transfer offer lets you move existing credit card debt onto a new card at a lower rate — usually 0% p.a. — for a set promotional period. In the Australian market, promotional periods currently run from 6 to 26 months. What most comparisons don't flag upfront: the transfer fee. Most cards charge 1–3% of the transferred amount as a one-off fee (for example, $120–$180 on a $6,000 transfer). On a 0% card this is still usually cheaper than leaving the debt on a 20.99% card, but it affects your break-even calculation.
The critical variable is what happens to new purchases during the balance transfer period. Most balance transfer cards do not extend 0% to new purchases — and they also suspend your standard 44-day interest-free period. This means any new purchase you make starts accruing interest at the full purchase rate (typically 19.99–21.99% p.a.) from day one. The practical implication: if you're using a balance transfer to pay off debt, stop using the card for new spending, or use a separate card for day-to-day purchases.
At the end of the promotional period, any remaining transferred balance reverts to either the standard purchase rate or the cash advance rate depending on the card — some revert to rates above 22% p.a. To protect yourself: divide your transferred balance by the number of promotional months and pay at least that amount each month, not just the minimum repayment. On a $6,000 balance over 12 months, that's $500/month — far above the typical 2% minimum of $120.
Purchase Rate Offers
A 0% purchase rate offer lets you make new purchases and pay no interest on them for a promotional period — typically 6 to 15 months in the current Australian market. This is different from the standard 44-day interest-free period: you don't need to clear your full balance each month to keep the 0% rate. You only need to make the minimum monthly repayment. The offer is best suited to large, planned purchases — appliances, travel, home improvements — where you know you'll spread the cost over several months.
The revert rate is the hidden risk. Cards offering 0% on purchases for an introductory period often revert to standard purchase rates of 19.99–21.99% p.a. — higher than a dedicated low-rate card. If you spend $3,000 during a 12-month 0% window and only make minimum payments (roughly 2% of the balance, or $60/month at the start), you'll have paid off around $720 by month 12, leaving approximately $2,280 still owing when the full rate kicks in. At 20.99% p.a., that remaining balance costs around $40 in interest in month 13 alone. To get full value from a 0% purchase offer, divide the total you plan to spend by the number of promotional months and commit to paying at least that amount each statement period.
Annual Fee Offers
If you want to save money, choosing a credit card with no annual fee is a great way to do it. Introductory offers may give you the first year free from annual fees, or alternatively, there are cards that offer no annual fee ever.
There’s no real downside to this type of offer. If you only have no annual fee for a year, just be aware of when you will have to pay it, and how much you will have to pay annually in the years afterwards.
Introductory Offer Bonus Rewards Points
Rewards credit cards will often offer bonus points for signing up. Be sure to find out if there are any catches to being eligible for the extra points. Some offers will give you a certain number of points with your first purchase, some will give you points if you spend a certain amount on the card in the first few months, and other cards may only give you the bonus points if you purchase from a specific retailer.
The main thing to remember when it comes to introductory offers is what will happen at the end of the introductory period, and what date it'll apply. If it's unclear, check with the issuer and ask them to confirm in writing. If you haven't read the terms and conditions, you may not be aware that you are paying more in interest rates or that the annual fee is now being charged.
What readers ask us most about introductory credit card offers
Based on CCAU editorial analysis of reader questions and comments mentioning introductory offers, 0% periods, and bonus points across the site.
38%
22%
20%
12%
8%
Source: CCAU editorial analysis of reader comments and enquiries about introductory credit card offers submitted across the site. Categories assigned by editorial team. This breakdown is not available on other Australian comparison sites.
What minimum repayments during a 0% period actually cost you
The most common misconception we see: readers assume that making the minimum monthly repayment during a 0% introductory period means they're "getting ahead." They're not. Minimum repayments on a $5,000 balance transfer are often as low as $25–$50/month. Here's what that looks like when the rate reverts.[1]
| Starting balance | Min payments during 0% (12 months) | Balance when rate reverts | Interest added in month 13 (at 20.99% p.a.) | Monthly repayment needed to clear in 24 months |
|---|---|---|---|---|
| $2,000 | $20/month ($240 total) | $1,760 | $30.79 | $91/month |
| $5,000 | $50/month ($600 total) | $4,400 | $76.96 | $229/month |
| $10,000 | $100/month ($1,200 total) | $8,800 | $153.93 | $457/month |
Min payment calculated at 1% of balance monthly. Revert interest at 20.99% p.a. compounding monthly. "Clear in 24 months" repayment calculated from end of intro period.
The new purchase trap: Once you have a balance transfer on a card, new purchases immediately start accruing interest from the purchase date — the standard 44–55 day interest-free period disappears. This is because interest-free days only apply when you pay your full closing balance, and your balance transfer prevents that. If you plan to keep using the card for everyday spending during a 0% BT offer, you're paying full purchase interest from day one on every transaction.
The bonus points spend trap: A 110,000-point welcome offer requiring $5,000 in 3 months means spending $1,667/month. If your normal monthly spend is $800, you'll need to overspend by $2,601 across 3 months to hit the threshold. At ~1.6¢ per Qantas point, 110,000 points are worth approximately $1,760 — which doesn't cover the extra spending required. The bonus only pays off if you were going to spend that amount anyway.[2]
Questions from our readers
Mitch asked: "How does the introductory offer of 0% on purchases for 12 months work? If I make a purchase, is it 0% for 12 months as long as I make the minimum payment, or is it 0% for 44 days?"
Neither, exactly. The 0% applies for the full 12-month introductory period regardless of the 44-day rule - but you'll need to make at least the minimum monthly repayment each statement cycle, or the bank may cancel the promotional rate. The 44-day interest-free period is a separate mechanism that applies when you pay your full closing balance; during a 0% purchase offer, you don't need to clear the full balance to keep the 0% rate. It's worth keeping track of: the minimum payment due, the promotional end date, and your credit limit - missing any of these could affect the offer.
Lyndsie asked: "I have a small debt I need to pay of up to $2,000, how does the 0% p.a. interest for the first 12 months work? Does that mean if I spend $2,000 I pay no interest for the first 12 months if I pay the minimum monthly repayment?"
Yes - but it's worth thinking through the numbers. The minimum monthly repayment is usually 1-2% of the balance, which on $2,000 is only $20-$40 a month. After 12 months of minimum payments you'd have paid roughly $240-$480, leaving around $1,520-$1,760 still owing - and that remaining balance would start attracting interest at the card's full revert rate. For a $2,000 debt, it may be worth considering dividing the amount by 12 and targeting approximately $167/month to clear it before the rate reverts, rather than relying on the minimum repayment alone.
Al asked: "Is the 0% for 15 months on purchases applied to purchases over that whole 15 month period, or limited to the introductory period (for example, first 90 days after card activation)?"
The 0% rate applies to purchases made during the entire 15-month introductory period - not just the first 90 days. Any purchase made in month 1 or month 14 of the offer period would attract 0% interest as long as it's within the promotional window. It's worth checking your card's letter of offer to confirm the exact start date, as most cards count from card approval date, not activation date - so a card sitting unactivated for a month still has the clock running on your promotional period.
Suzanne asked: "The ANZ QFF Black card refers to an introductory offer of 110,000 points and $255 back when you spend $5,000 on eligible purchases in the first 3 months. What are eligible purchases?"
Eligible purchases for welcome offers typically exclude: cash advances, balance transfers, BPAY payments, government payments (ATO, Medicare, council rates), gambling transactions, and sometimes gift card purchases at supermarkets. Petrol, groceries, dining, and online retail generally tend to qualify. The specific exclusion list varies by card - it may be worth reviewing the Product Disclosure Statement's exclusion list before assuming your regular spending patterns will count, as some categories can code differently depending on the merchant.
Dianne
2 April 2025Pauline
3 April 2025