Indeed, it is even more daunting to deal with the current multiple credit card balances in the marketplace. HSBC PLC is one of the leading Credit Card Issuers and the Balance Transfer Credit Card is designed for those who have high interest rates on the current Credit Card debts.
But, up to an amazing 27 months of 0% interest on balance transfers (with a fee), which makes it giving one of the longest balance transfers out there. Now let’s look at the main features that will help to understand the main concept of the HSBC Balance Transfer Credit Card.
Key information about the credit card
How does the annual fee work?
This HSBC Balance Transfer Credit Card does not have an annual fee, one of the attractive aspect that customers will be interested in. This is a great benefit, more so for people who are concerned with cutting their expenses. Since there is no annual fee to be paid, this means that all your concentration will be towards elimination of the transferred balances only.
How is the credit limit determined?
The amount of credit provided on the HSBC Balance Transfer Credit Card depends on certain factors, most of which are linked to your credit rating. Credit files, income status, as well as the behavior of the applicant are among the factors used by HSBC to evaluate a credit worthiness of an applicant.
Advantages of the credit card
- Extended interest-free period: Transfers for a period of up to 27 months can be made at a zero-interest rate, which gives an opportunity to reduce an outstanding balance without much stress on new interest rates.
- No annual fee: Take full advantage of the card provided that you will not incur any annual fee, all the amount that you pay will be towards rebuilding your credit.
- 0% interest on purchases: Over the initial 90 days, all the purchases do not attract any interest, thus simplifying any immediate purchasing requirement.
- Offers and discounts: A compilation of special privileges and discounts for shopping, dining, travel and other necessities and leisure, and they are turned frequently so that the value of the card is not eroded through time.
Standout advantage
Another hallmark of the HSBC Balance Transfer Credit Card is a rather long zero-interest period for the balance transfers. This feature is especially useful to clients with large amounts of credit card balances charged on different accounts.
In essence, these debts you can consolidate to one card with up to 27 months of 0% interest and this will dramatically lower your financial pressure and instead focus on making a single payment monthly.
Disadvantages
- Balance transfer fee: The fee to be charged from the borrowers, under the proposed financing model, is at 3. 49% applies in balance transfer, therefore one can find it expensive, especially if a large amount is to be transferred.
- High standard APR: Later, the fixed interest rate reverts back to a variable Annual Percentage Rate of 24/ After a certain period, the promotional interest rate will no longer apply, and it will be substituted by a variable rate of 24/ 9% which indeed is quite expensive as compared to most of the cards.
- Limited time frame for balance transfers: Transfers must be made within the first 60 days’ statement period to attract the free interest rate, which may not suit all the customers.
A standout disadvantage
Certainly, the main downside to the HSBCs Balance Transfer Credit Card is the Balance Transfer Fee that stands at 3%. 49%. The interest-free period is perhaps appealing, this fee is rather steep, although it can be mitigated if you’re transferring a small balance. For example, if a balance of £10,000 was to be transferred to the fee would be £349.
Who can apply for this card?
Eligibility requirements include having reached 18 years of age or above and being a UK resident to apply. Further, the applicant should have a taxable income or pension from the United Kingdom that is not less than £6,800 per annum gross before tax is deducted.
And it should also be pointed out that this card is not for those who have an HSBC Basic Bank Account or have applied for an HSBC credit card or received an increase in their credit limit in the last 6 months.
How to apply for the HSBC Balance Transfer Credit Card
For the website
The Balance Transfer Credit Card with HSBC UK has made it quite possible to apply for the card through their website. The application process is simple, and the user can go through it and obtain the desired software in several a few steps. First of all, you will be asked to disclose some personal information, your income, and expenditure at the present moment.
At every stage, the website helps you fill in all the fields, and this means that the information that is entered is correct. When you have completed the application process, HSBC assess the application and usually respond with the decision within a few business days.
Through the app
For those who do not have time to visit the branch or who wish to apply for the Balance Transfer Credit Card anytime and anywhere, using your mobile, then HSBC mobile banking app is a one-stop-shop for the application.
All you have to do is download the app in case you have not done so, then go straight to the credit card hub. From there, select the Balance Transfer Credit Card and using the instructions we provided you above, you can go through the process of application.
The application through the app also provides real time tracking of the application status. Also, after the approval of the card, it is possible to link it to the digital wallet through the application, and that enables the user to use the card even when the physical card is not yet delivered.
At the branch
Others, who want a more contacts-oriented decision, can apply for the HSBC Balance Transfer Credit Card at one of the HSBC bank branches. By visiting a branch one can engage a representative of the firm and get firsthand information on the card and how to apply for it.
As for paperwork, there is no paperwork required from the applicants unless they want to be employed under a different name, which in that case, the applicants have to provide an identification card or a passport. The representative may also offer the prospect comprehensive information regarding the card and how they can integrate it to their plan.
