HSBC Balance Transfer Credit Card review April 2020

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Benefit from 0% interest on balance transfers for an extended period with HSBC’s Balance Transfer Credit card.

HSBC’s Balance Transfer card is designed to let you transfer an existing balance to HSBC to enjoy an extended interest-free period. It is one of several credit cards offered by HSBC, but it’s the only one specifically designed for balance transfers, and therefore offers the longest period of 0% interest.

You say: ★★★★★We say: ★★★★★

Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).

25 months

0% interest on balance transfers

21.9%

Representative APR

£0

Account fee

Details

IssuerHSBC
NetworkVisa
Annual/monthly fees£0
Balance transfers0% for 25 months reverting to 21.9%
Balance transfer fee1.5% (min. £5)
Purchases0% for 3 months reverting to 21.9%
Purchases interest-free periodUp to 56 days
Cash advances27.9%
Min credit limit£500
Max credit limitNot specified
Additional cards available1
IncentiveDiscounts and exclusive offers for dining experiences, leisure activities and shopping available through HSBC Home and Away.

Expert review

Chris Lilly

Review by


Chris Lilly is a publisher at finder.com. He's a specialist in credit-based products including business and personal loans, mortgages and credit cards, and is passionate about helping UK consumers make informed decisions about their borrowing. In his spare time Chris likes forcing his kids to exercise more.

Expert review

While this card doesn’t come with an annual or monthly fee attached, there is a balance transfer fee (albeit a competitive one) of 1.5% (min. £5) to consider, which could be a significant factor for those transferring larger sums. Balance transfer offers with no transfer fees involved do exist, but they don’t tend to be found on the longest 0% interest deals.

It’s also important to remember that if you don’t clear your balance in full within the 25 months, then any outstanding balance will start to accrue interest at the card’s standard rate.

It’s pretty light on perks, which is probably to be expected from a card that’s primarily about helping people clear debt faster, but you will be able to benefit from some (incredibly specific) offers through the HSBC Home and Away scheme plus cashback deals through Visa Offers.

The card is operated on the Visa network, meaning it can be used in over 30 million locations worldwide.

Pros and cons

  • Benefit from Visa Offers cashback rewards.
  • Use this card for contactless payments, Apple pay, Google pay and Samsung Pay.
  • Competitive balance transfer fee.
  • Not available to customers already using the HSBC Basic Bank Account.
  • Requires a relatively high minimum income of £8,500 p.a.
  • Balances can't be transferred from first direct, M&S Bank or John Lewis cards.

How does this card compare with similar products on the market?

HSBC’s card

Updated April 4th, 2020
Name Product Balance transfers Balance transfer fee Purchases Annual/monthly fees Rep. APR Incentive Representative example
HSBC Balance Transfer Credit Card Visa
0% for 25 months reverting to 21.9%
1.5% (min. £5)
0% for 3 months reverting to 21.9%
£0
21.9% (variable)
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).
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Approval for any credit card will depend on your status. The APR shown represents the interest rate offered to most successful applicants. Depending on your personal circumstances the APR you're offered may be higher, or you may not be offered credit at all. Fees and rates are subject to change without notice. It's always wise to check the terms of any deal before you borrow.

The competition

Table: sorted by length of 0% balance transfer offer, promoted deals first
Updated April 4th, 2020
Name Product Balance transfers Balance transfer fee Purchases Annual/monthly fees Rep. APR Incentive Representative example
The NatWest Balance Transfer Credit Card (eligibility criteria apply)
0% for 20 months reverting to 19.9%.
0%
Transfers must be made within 3 months of account opening
0% for 3 months reverting to 19.9% p.a. (variable)
£0
19.9% (variable)
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable), your representative rate is 19.9% APR (variable).
The Royal Bank Balance Transfer Credit Card (eligibility criteria apply)
0% for 20 months reverting to 19.9%
0%
Transfers must be made within 3 months of account opening
0% for 3 months reverting to 19.9% p.a. (variable)
£0
19.9% (variable)
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable), your representative rate is 19.9% APR (variable).
Halifax Longest 0% Balance Transfer Mastercard
0% for 29 months reverting to 19.95%
3% for 3 months reverting to 5%
0% for 3 months reverting to 19.95%
£0
19.9% (variable)
Representative example: When you spend £1,200 at a purchase rate of 19.95% (variable) p.a., your representative rate is 19.9% APR (variable).
MBNA Long 0% Balance Transfer Credit Card
0% for 29 months reverting to 20.93%
2.75% for 2 months reverting to 5%
20.93%
£0
20.9% (variable)
Representative example: When you spend £1,200 at a purchase rate of 20.93% (variable) p.a., your representative rate is 20.9% APR (variable).
Virgin Money 29 Month Balance Transfer Credit Card Mastercard
0% for 29 months reverting to 21.9%
3% for 2 months reverting to 5%
0% for 3 months reverting to 21.9%
£0
21.9% (variable)
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).
Lloyds Bank Platinum Longest 0% Balance Transfer Mastercard
0% for 28 months reverting to 19.94%
3% for 3 months reverting to 5%
0% for 6 months reverting to 19.94%
£0
19.9% (variable)
Representative example: When you spend £1,200 at a purchase rate of 19.94% (variable) p.a., your representative rate is 19.9% APR (variable).
M&S Bank Transfer Plus Mastercard
0% for 28 months reverting to 19.9%
2.85% (min. £5)
0% for 6 months reverting to 19.9%
£0
19.9% (variable)
Earn 1 point for every £1 spent at Marks and Spencer's and 1 point for every £5 spent elsewhere. 100 points = £1 reward voucher. Points will be converted into reward vouchers 4 times a year.
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).
Sainsbury's Bank Balance Transfer Credit Card Mastercard
0% for 28 months reverting to 19.95%
3% (min. £3)
0% for 3 months reverting to 19.95%
£0
19.9% (variable)
Earn 750 bonus Nectar points each time £35 or more spent on Sainsbury's shopping, up to ten times in your first 2 months, up to a total of 7,500 points, offer available for new customers. Earn 2 Nectar points per £1 spent on Sainsbury's shopping and fuel. Earn 1 Nectar point for every £5 spent elsewhere.
Representative example: When you spend £1,200 at a purchase rate of 19.95% (variable) p.a., your representative rate is 19.9% APR (variable).
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Repayment options

When it comes to repayments, you can make manual repayments online or over the phone (0345 7404 404), or alternatively set up a direct debit. A direct debit is a great idea because it protects you from forgetting to make a repayment and either damaging your credit score, getting hit with a penalty fee or losing any promotional rates as a result. You can arrange a direct debit for repayments when you apply for the credit card. The table below shows the options available.

Choose from the following direct debit options for your monthly repayments:

Minimum amount Fixed amount Fixed percentage Full amount

How to apply for the HSBC Balance Transfer Credit Card

If you want to transfer a balance and enjoy 25 months interest-free with this card, you can use the secure application form on the HSBC UK site, which takes about 15 minutes to complete. Existing HSBC customers can alternatively apply in-branch (make sure to take photo ID and proof of address and a recent bank statement).

Before you apply, check that you meet the eligibility requirements and have the information and documents you’ll need so that you can make the process as easy as possible.

Frequently asked questions

Can I transfer a balance from an HSBC card?
No. HSBC doesn’t accept balance transfers from credit cards issued through HSBC group, which includes M&S Bank, John Lewis and first direct cards.
Does it have an app?
Yes. You manage this card through HSBC UK’s free mobile banking app.
What should I do with my old card?
Transferring a balance doesn’t automatically close your old account. In most cases, you’ll want to close the old accounts straightaway, especially if they have a annual/monthly fee or if you might be tempted to use them in the future. There is an argument that you should keep the old account open to help your credit score. That’s because doing so keeps your “credit utilisation ratio” lower (that’s a measure of how much credit you’re using compared to what’s available to you), and helps the average age of your credit accounts. However, unless you’re just about to apply for a new mortgage, it’s probably fair to say that most people would prefer to have no more bank accounts open than was truly necessary.

Finder credit card ratings

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★★★★★ — Good

★★★★★ — Average

★★★★★ — Subpar

★★★★★ — Poor

Our experts rate each balance transfer credit card comparing it to similar deals available on the market. We evaluate how long the 0% deal is, how much it could cost a consumer and whether the card also offers any extras.

You can learn more on our star ratings on our credit card methodology page.

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

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2 Comments

  1. Default Gravatar
    christine
    December 2, 2019

    on 0% balance transfer can you pay off as much as you like and as soon as you like with no penalties

    • Avatarfinder Customer Care
      Tom
      December 18, 2019

      Hi Christine,

      Thanks for getting in touch. That’s correct, you can pay off as much of your balance transfer as you like immediately, though you’ll still need to pay the 1.5% balance transfer fee on the amount you transfer.

      This means you can pay off your entire existing balance straight away without being charged interest, but you’ll also have 25 months in which to do so before the interest-free period ends.

      Please keep in mind that you won’t be eligible for this card if you already have a HSBC basic bank account, or are transferring a balance from another HSBC credit card, or a first direct, M&S Bank or John Lewis card.

      I hope this helps, but please let me know if you have any other questions.

      Thanks,

      Tom

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