Every Zip Money purchase comes with an interest-free period of up to 3 months¹, and some partnered retailers offer extended interest-free terms of up to 60 months². With the right repayment habits and the helpful tools in your Zip app, it’s easy to stay on top of your balances and avoid paying interest.
To help you understand exactly what’s interest-free and what may be accruing interest, the Zip app now shows a clear breakdown directly under your Total owing balance:
You’ll see three key amounts:
Available: This shows the remaining credit you can use.
Interest free: This shows the total amount currently within its interest-free period.
These purchases won’t incur interest as long as you pay them off before the interest-free period ends.
Interest bearing: This shows the amount currently attracting interest. If something appears here, it means its interest-free period has ended.
How to Avoid Paying Interest
To stay interest-free:
- Repay purchases before their interest-free period expires.
- Pay more than your Minimum Monthly Repayment (MMP).
Your MMP helps keep your account in good standing, but it may not be enough to clear purchases before they begin accruing interest. - Use the in-app breakdown to keep track of how much of your balance is interest-free and how much is nearing expiry.
¹ T&Cs and credit approval criteria apply. A monthly account fee of $9.95 will apply. A one-off establishment fee may apply for new customers. The availability of the interest free period for a purchase will depend on the purchase amount, the minimum monthly repayment and account status. Any balance outstanding at the expiry of the interest free period will be charged at the standard variable interest rate, 25.9% per annum, as at 1 June 2023. Other charges may be payable, see T&Cs. Interest, fees and charges subject to change. Minimum monthly payments are required and vary depending on your closing balance at the end of each statement period. Paying only the minimum monthly repayment may not repay a purchase within the interest free period. Paying the minimum monthly repayment may result in paying off the purchase before the interest free period expires. Credit provided by ZipMoney Payments Pty Ltd (ABN 58 164 440 993), Australian Credit Licence Number 441878.
² The interest free period is the maximum period of time when no interest is charged on the purchase. The availability of the interest free period for a purchase will depend on the purchase amount, the minimum monthly repayment and account status. Minimum monthly repayments are required and vary according to your closing balance at the end of each statement period. Minimum monthly repayments may require repayment of the purchase prior to the expiry of the maximum interest free period. In other cases, paying only the minimum monthly repayment may not repay the purchase in the interest free period. Any purchase amount outstanding at the expiry of the interest free period will be charged at the standard variable interest rate, 25.9% per annum, as at 1 June 2023. Zip Money is available to approved applicants and subject to completion of a satisfactory credit assessment. A monthly account fee of $9.95 applies and a one-off establishment fee may apply for new customers. Other charges may be payable, see T&Cs. Interest, fees and charges are subject to change. Terms and Conditions apply and are available on application. Further details [insert link]. Credit provided by ZipMoney Payments Pty Ltd (ABN 58 164 440 993), Australian Credit Licence Number 441878.