HSBC Business Credit Card review 2020
With its competitive interest-free period and purchases rate, the HSBC Business Credit Card can give your business' finances the breathing space they need.
You say: ★★★★★We say: ★★★★★
Doing its job: 4.5/5
In a nutshell:
Up to 56 days
Interest-free each billing period
|Annual/monthly fees||Year 1 - £0, Year 2 onwards - £32 per annum|
|Purchases interest-free period||Up to 56 days|
|Min credit limit||£500|
|Max credit limit||Not specified|
|Incentive||Identity Theft Assistance helpline and online tool. Liability Waiver for companies who have two or more cardholders. 24 hour customer service support.|
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.
Reserved for HSBC Business customers, this card offers a low (albeit variable) 15.9% standard purchases rate.
Provided you always pay off your credit card bill in full, you can also get up to 56 days interest-free each billing cycle. Unlike with many other issuers, this also applies to cash advances, but it’s worth keeping in mind that these come at a 2.99% (min. £3) fee.
The extra interest-free time can help you smooth over your business’ cash flow and also makes it easier to establish a virtuous borrowing circle, with immediate benefits for your business’ finances.
HSBC scraps the annual fee for the first year, so this card may be a good idea if you’re getting a credit card for your business for the first time: as long as you use it correctly, for the first 12 months it won’t cost you a penny. After that, the combination of a competitive purchases rate with a long interest-free period can still make it worth your while, especially if your customers are a bit slow with the payment of their invoices.
You can also get extra cards for your employees for free as unlike other card issuers, HSBC charges per business and not per card.
HSBC Business Credit Cards are issued on the Visa network, so they’re accepted at over 20 million locations worldwide.
Pros and cons
- 56 days to spread the cost of purchases (provided you pay off your balance in full each month).
- Annual fee.
- Applicants with low credit scores are unlikely to be eligible.
How does this deal compare?
When it comes to repayments, you can make manual repayments online or over the phone (0800 032 1770), 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 Business Credit Card
If you’ve browsed credit card options and decided that the HSBC Business Credit Card adequately matches your needs, you can apply for one online or by calling HSBC if you’d rather talk to someone directly.
Unfortunately, this card is only available to HSBC Business customers, so if you don’t have an account with it, you’ll need to take care of that first. With HSBC you can usually apply for a business account online, so you don’t need to move from your sofa to do it.
If your business is already banking with HSBC, you can log in to your online banking and handle the application from there. Before starting, it’s a good idea to use HSBC’s eligibility checker – a handy tool that will run a soft check and tell you if you’re likely to be accepted without impacting your credit score.