Choosing the right credit card can make a significant difference in managing finances, especially when looking for one that provides extended interest-free periods. The HSBC Purchase Plus Credit Card is designed for individuals who want to spread the cost of their purchases over time without incurring high interest rates.
This card offers an interest-free period on both purchases and balance transfers, making it a versatile option for those looking to manage expenses efficiently. With no annual fee and added benefits such as purchase protection and worldwide usability, it presents itself as an attractive financial tool for many users.
Key information about the credit card
How does the annual fee work?
One of the most appealing aspects of the HSBC Purchase Plus Credit Card is that it does not come with an annual fee. Many people are wary of credit cards that require yearly payments, as these can add to financial burdens.
However, with this card, users can enjoy all its benefits without worrying about an extra charge simply for keeping it active. The absence of an annual fee makes the card particularly beneficial for those who want to maintain an account for emergency expenses or occasional use.
How is the credit limit determined?
HSBC determines the credit limit for the Purchase Plus Credit Card based on several financial factors, ensuring that it aligns with each applicant’s ability to repay. The bank assesses the individual’s income, credit history, and overall financial situation before setting a personalized limit. This approach helps prevent excessive borrowing and promotes responsible credit use.
Advantages of the credit card
- Interest-free purchases: Cardholders can enjoy up to 20 months of 0% interest on purchases, making it easier to spread costs over time.
- Balance transfer offer: The card provides up to 17 months of 0% interest on balance transfers if completed within 60 days of opening the account, although a 3.49% fee applies.
- No annual fee: Users do not have to worry about yearly charges for keeping the card active.
- Purchase protection: Covered under Section 75 of the Consumer Credit Act, purchases between £100 and £30,000 are protected against supplier fraud and contract breaches.
- Easy account management: The HSBC mobile banking app and online platform allow users to monitor their spending, make payments, and even freeze the card if needed.
- Worldwide usability: The card can be used in any country that supports Visa or Mastercard, making it a convenient option for travelers.
- Emergency cash advance: If the card is lost or stolen, HSBC provides a 24/7 support service to help users access emergency funds.
- Exclusive discounts: HSBC offers cardholders special discounts on shopping, dining, travel, and entertainment, with deals updated regularly.
- Contactless payments: The card is compatible with digital wallets like Apple Pay and Google Pay for faster and more secure transactions.
Standout advantage
The most significant benefit of the HSBC Purchase Plus Credit Card is its extended interest-free period on purchases. With up to 20 months of 0% interest, this feature allows users to make large purchases and pay them off over time without incurring extra costs. This is especially beneficial for those who need financial flexibility while making significant investments, such as home improvements or expensive electronics.
Disadvantages
- Balance transfer fee: Although balance transfers come with an interest-free period, they require a 3.49% fee, which could add to the cost.
- Interest rates after the promotional period: Once the interest-free period ends, the purchase rate reverts to 24.9% APR (variable), which can be quite high if balances are not cleared in time.
- No rewards program: Unlike some credit cards, this one does not offer cashback or loyalty points for purchases.
- Foreign transaction fees: While the card can be used internationally, foreign transactions may come with additional charges.
A standout disadvantage
One of the main drawbacks of the HSBC Purchase Plus Credit Card is the strict time limit for balance transfers. Users only have 60 days from the account opening date to transfer balances at the 0% interest rate. If they miss this window, the standard interest rates apply, which can make transferring debt less beneficial. This makes it crucial for new cardholders to act quickly if they plan to consolidate their debts with this card.
Who can apply for this card?
To apply for the HSBC Purchase Plus Credit Card, applicants must meet certain eligibility criteria. They need to be at least 18 years old, be a resident of the UK, and have a minimum annual taxable income or pension of £6,800 before tax. Additionally, the applicant must not hold an HSBC Basic Bank Account or have received a credit limit increase on another HSBC credit card within the past six months.
HSBC assesses each application based on creditworthiness, meaning those with a strong financial history are more likely to be approved. The card is not specifically designed for individuals with poor credit, so those with a low credit score may have difficulty qualifying.
How to apply for the HSBC Purchase Plus Credit Card
For the website
Applicants who prefer to apply online can visit HSBC’s official website and navigate to the credit card application section. Here, they will find a step-by-step form that guides them through the process. They will be required to enter their personal information, including full name, address, and employment details, along with their financial status. HSBC performs a credit check to determine eligibility, and applicants will receive a decision shortly after submission. If approved, the card is sent via mail within a few business days.
Through the app
For those who already use HSBC’s mobile banking app, applying for the Purchase Plus Credit Card is even easier. Users can log in to their account, navigate to the credit card section, and select ‘Apply in app.’ The app pre-fills some information based on the user’s existing HSBC account, making the process quicker. Applicants may also scan a QR code from HSBC’s website to start their application. The approval process is similar to the website application, and successful applicants receive their card within a few days.
At the branch
Applicants who prefer an in-person experience can visit an HSBC branch to apply for the card. At the branch, a representative will assist in completing the application form and verifying identification documents. This option is ideal for those who want personalized assistance or have specific questions about the card. The representative may also provide advice on eligibility and the best way to use the card’s benefits. Once approved, the card is mailed to the applicant’s address, typically within a few working days.
