HSBC Balance Transfer Low Fee Credit Card review 2022

Enjoy 28 months of 0% interest with HSBC’s newest balance transfer card.

Designed to help you pay off some of your existing debts, the HSBC Balance Transfer Low Fee Credit Card offers up to 28 months with no interest to pay on balances transferred of £100 or more with a competitive 1% fee.

  • Competitive balance transfer fee
  • Longer 0% balance transfer deals on the market
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).

28 months

0% interest on balance transfers

21.9%

Representative APR

£0

Account fee

3 months

0% interest on purchases

Details

IssuerHSBC
NetworkVisa
Annual/monthly fees£0
Balance transfers0% for 28 months reverting to 21.9%
Balance transfer fee1% fee, min £5
Purchases0% for 3 months reverting to 21.9%
Purchases interest-free periodUp to 56 days
Cash advances27.9%
Minimum credit limit£500
Maximum credit limitNot specified
Additional cards available1
Incentive
Discounts and exclusive offers for dining experiences, leisure activities and shopping available through HSBC Home and Away.
Additional Rewards InfoDiscounts and exclusive offers for dining experiences, leisure activities and shopping available through HSBC Home and Away.

Review by


Emily Herring is a Publishing Executive at Finder specialising in credit-based products including credit cards and business and personal loans. Emily has a Masters in Creative Writing & Publishing and a Bachelor of Arts in Communication & Media.

Expert review

Slotting in nicely with HSBC’s growing arsenal of credit cards, their newest balance transfer card offers to help you spread the cost of your current card debt whilst not having to worry about extortionate transfer fees.

As well as 28 months of no interest on your debt, you will be able to take advantage of 3 months of 0% interest on purchases. However, it is always wise to pay off any existing card debt before you start spending.

It is good to note that yes, this card carries a competitive balance transfer fee, but if you are planning on shifting large balances, you might want to consider a card that doesn’t have a balance transfer fee and potentially longer 0% interest periods. Start comparing some of the best balance transfer cards on the market.

If you are a successful applicant, you can take advantage of the discounts and exclusive offers available through HSBC Home and Away. This can include dining experiences, leisure activities and shopping – what more can you want? How about the excellent customer service that current HSBC customers rave about.

Pros and cons

Pros

  • Customers report excellent customer service when dealing with HSBC
  • Over two years of 0% interest to focus on reducing existing card debt
  • Three months to spread the cost of purchases
  • A relatively low balance transfer fee
  • No annual fee

Cons

  • Not available to customers already using the HSBC Basic Bank Account.
  • Requires a minimum income of £6,800 p.a.
  • Balances can't be transferred from cards issued by other members of the HSBC Group including first direct, M&S Bank and John Lewis Financial Services
  • Longer 0% balance transfer deals on the market

Approval for any credit card will depend on your status. The representative APRs shown represent 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.

Repayment options

You can make manual repayments through HSBC's app, by logging in to your online banking or over the phone (0345 7404 404). Alternatively, you may wish to set up a direct debit.

A direct debit protects you from forgetting to make a repayment and losing your promotional interest rate as a result (as well as damaging your credit score and incurring the late payment fee of £12). You could use a fixed-amount direct debit to ensure you've cleared your debt before the 0% period expires – simply divide your outstanding balance by 28 to see what you'll need to pay each month (this assumes you don't use the card for additional spending).

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

If you've compared cards and settled on the HSBC Balance Transfer Low Fee Credit Card, you can head over to HSBC's secure online application to apply. Don't forget, you'll need to be over 18 and a UK resident to apply, with an income of at least 6800. You can request a balance transfer as part of your application.

Existing HSBC customers can alternatively apply in-branch (make sure to take photo ID, proof of address and a recent bank statement).

Frequently asked questions

What credit limit will I get with the HSBC Balance Transfer Low Fee Credit Card?

If HSBC is able to offer you this deal, the offer will specify a personalised credit limit based on HSBC's assessment of your situation. The minimum limit offered on this card is £500 and HSBC does not specify a maximum. Once you've had the card for a while and shown HSBC that you're reliable, you may wish to apply for a credit limit increase.

Can I withdraw cash using the HSBC Balance Transfer Low Fee Credit Card?

Although it's possible, withdrawing cash from a credit card account is generally not a good idea, as "cash-like transactions" (such as withdrawing cash at an ATM, getting cashback at the till, spending at a casino or buying currency) often incur steep fees and/or higher rates of interest.

The cash advance fee on the HSBC Balance Transfer Low Fee Credit Card is 2.99% (min. £3). For example, if you withdraw £50, you'll incur a fee of £3.00. Withdraw £250, and you'll incur a fee of £7.48.

The interest rate on this part of your balance will be 27.9%, which is 27% more than the standard purchase rate (chargeable from the day of the transaction – the card's usual "up to 56 days interest-free" grace period won't apply).

Can I transfer a balance from another HSBC-branded card to the HSBC Balance Transfer Low Fee Credit 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.

What should I do with my old credit card after transferring the balance to the HSBC Balance Transfer Low Fee Credit Card?

Transferring a balance doesn't automatically close your old account. In most cases, you'll want to close the old account(s) straightaway, especially if they have an 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.

Can I manage the HSBC Balance Transfer Low Fee Credit Card from an app?

Yes. You can manage this card through HSBC UK's free mobile banking app.

How much does it cost to use the HSBC Balance Transfer Low Fee Credit Card abroad?

Non-sterling transactions are subject to a 2.99% charge (which is very standard). For example, if you spend 200 euros (£172.06), it'll cost you around £5.14 in fees.

What is the minimum payment on the HSBC Balance Transfer Low Fee Credit Card?

Each month you must pay at least 2.5% of your balance at that point or £5.00 – whichever of the 2 figures is greater. So if you had, say, £180.00 outstanding, you'd pay £5.00, and if you had £800.00 outstanding, you'd pay £20.00.

Paying only the minimum required amount each month is generally not advisable as it makes it much harder to get debt-free before that introductory 0% period expires.

Finder credit card ratings

★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor

Our experts score balance transfer cards to determine their value against similar products on the market. We look at a number of important factors, like the length of the balance transfer offer, the balance transfer fee, any restrictions to making a transfer, plus the potential costs involved with running the card both in the short and longer term.

You can read more about our scoring criteria 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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