Interest-free credit cards that still earn points in Australia (2026)

Interest-free credit cards in Australia offer a promotional period during which no interest is charged on your balance. That gives you time to pay off a purchase or transferred debt without the standard rate applying. 

The question most frequent flyers ask is whether these cards still earn Qantas or Velocity Points while the promotional rate is in effect. The answer is yes, with conditions worth understanding before you apply. 

This guide covers how interest-free cards work and which ones still earn points during the promotional period. You’ll also learn how to use them strategically without sacrificing points value. For the full range of rewards-earning cards currently available, the Point Hacks credit card guide is the right starting point.

How interest-free credit cards work in Australia

An interest-free credit card typically refers to one of two things. A card might offer a 0% purchase rate for a set promotional period. Alternatively, it may offer a 0% balance transfer rate for a set period.

On a 0% purchase rate card, new spending made during the promo accrues no interest for the duration of the offer. After the promotional period ends, any remaining balance reverts to the standard purchase rate. These offers are rare, especially on points-earning cards.

On a 0% balance transfer card, a transferred balance from another card attracts no interest during the promotional window. New purchases typically accrue interest at the standard rate immediately.

Analysis by Mozo, based on RBA retail payments data, found that Australian credit card balances accruing interest dropped 45% over a decade, falling from $31.8 billion to $17.5 billion. Australians are getting significantly better at using their interest-free periods effectively. This makes understanding them all the more important for frequent flyers looking to earn points without paying for the privilege.

Do interest-free credit cards earn frequent flyer points?

This is where it gets interesting. Most generic interest-free or 0% purchase rate cards are marketed as low-cost debt-management products. Consequently, they earn no points at all. However, a small subset of rewards cards offers a 0% promotional purchase or balance transfer rate for a limited period, alongside ongoing Qantas or Velocity Points earning on new spending. A set fee may apply, which you will need to consider.

The key distinction is between the interest-free period and the absence of points earn. They are separate card features that do not automatically cancel each other out. A card can offer both a promotional 0% rate and a points earn rate on qualifying spend. Not all do, but the ones that do represent genuinely useful tools for a frequent flyer who wants to make a significant purchase without paying interest while still building a points balance.

What never earns points is interest itself. If you carry a balance past the promotional period and start accruing interest at the revert rate, those charges do not earn points. Points are earned on purchases only.

Best interest-free credit cards that earn Qantas Points

Some Qantas co-branded cards have historically offered introductory 0% purchase rate or balance transfer periods for new cardholders, alongside ongoing Qantas Points earn on new spend.

The MyCard Premier Qantas Credit Card has offered a 0% balance transfer rate for 12 months for new applicants, with a 3% balance transfer fee. New purchases earn Qantas Points at the card’s standard earn rate during the same period. On this card, that rate is 1 Qantas Point per $1 on online and overseas spend. That drops to 0.5 Qantas Points per $1 on other eligible domestic spend.

This combination works in a frequent flyer’s favour because it means you can transfer existing debt to the card and pay it down interest-free. Simultaneously, you’ll earn Qantas Points on your new everyday spending during the same period. The two features operate independently.

The important caveat: always confirm the current terms directly with the card issuer before applying. Promotional rates change frequently, and specific offers available at publication may differ by the time you read this. For the current state of Qantas-earning cards, the Point Hacks guide to earning Qantas Points is kept up to date.

Best interest-free credit cards that earn Velocity Points

The same principle applies to Velocity-earning cards. Several bank rewards cards that transfer to Velocity have offered 0% balance transfer promotions to new cardholders. Meanwhile, you can still earn standard points on new purchases throughout.

NAB Rewards Signature Card with Velocity has offered balance transfer deals alongside ongoing bank points earn that convert to Velocity. If you hold this card during a balance transfer promotional period, your everyday spending continues to accumulate points that eventually flow to your Velocity account.

Focused on building your Velocity Points balance? The credit card earn rate matters more than the interest-free period in the long run. The Point Hacks Velocity credit card guide covers the full range of current options with their earn rates and any active promotional offers.

How to use an interest-free card strategically without losing points value

The most common mistake with interest-free cards is treating the 0% period as a reason to relax repayments. It isn’t. The correct approach is to divide your transferred balance or large purchase by the number of months in the promotional period. Repay at least that amount each month, clearing the debt before the revert rate kicks in.

Consider this scenario: you transfer $6,000 to a card that offers 0% for 18 months, with a 3% transfer fee. The fee costs $180 upfront. Divide $6,000 by 18 – you need to repay $333 per month to clear the balance before the promotional period ends. If you set up a direct debit for that amount on the day the card arrives, the interest-free period functions exactly as intended.

During that same 18 months, if your card earns 0.75 Qantas Points per $1 on everyday spend and you put $2,000 per month through it, you’re accumulating 1,500 Qantas Points per month, or 27,000 over the promotional period. If you use it correctly, you’ll pay zero interest on your transferred balance. That’s the combination this article is about.

What happens to your points earn after the interest-free period ends

Nothing changes about your points earn rate when the promotional period ends. The card continues to earn at its standard rate. What changes is the interest treatment of any remaining balance.

If you have not cleared the full balance by the time the promotional period expires, the remaining amount begins accruing interest at the card’s revert rate. That’s typically the standard purchase rate or the cash advance rate, depending on the card’s terms. These rates are often above 20% p.a., which can quickly erode the financial benefit of the promotional period if you’re not prepared.

Planning your repayment schedule before you apply is more valuable than any specific card feature. The interest-free period is a tool, not a safety net.

Interest-free credit card vs balance transfer card: which suits a frequent flyer?

A 0% purchase rate card means new spending you make on the card accrues no interest during the promotional period. A balance transfer card means debt you move from another card accrues no interest, while new purchases typically do accrue interest at the standard rate immediately.

For a frequent flyer, the balance transfer card is usually more relevant. You’re not trying to avoid interest on new spending. You’re earning points on new spending and paying it off in full each month. What you may want is to consolidate existing debt at 0% (+ a set fee) while keeping your everyday points earn running cleanly on new purchases.

The ideal structure is a card offering a 0% balance transfer rate for new cardholders, a competitive ongoing earn rate on new purchases, and a revert rate that goes to the purchase rate rather than the higher cash advance rate when the promotional period ends.

Frequently asked questions