Save with a low balance transfer offer and interest-free credit at over 1,000 retailers with the HSBC Low Rate Credit Card.
The HSBC Low Rate Credit Card offers interest-free purchases for up to 5 years at over 1,000 participating retailers across Australia. You can make interest-free purchases between $500 to $50,000 as well as up to 55 days interest-free on your other everyday purchases (so long as you pay your balance in full by the due date). You may also want to compare this with other cards with interest-free periods.
|Product Name||HSBC Low Rate Credit Card|
|Balance transfer rate (p.a.)||0% p.a. for 20 months with 2% balance transfer fee|
|Balance Transfer Revert Rate|
The interest rate after the balance transfer ends.
|Cash Advance Rate (21.99% p.a.)|
|Balance Transfer Limit||100% of available credit limit|
|Purchase rate (p.a.)||13.25% p.a.|
|Offer end date||30 June 2018|
|Annual fee||$79 p.a.|
|Interest Free Period|
The interest-free period on purchases is the period or number of days you do not have to pay interest on your card purchases. You will be charged interest either from the day you make a purchase or from the statement date, unless you pay the closing balance in full by the due date (or within the interest-free period) on your statement.
|Up to 55 days on purchases|
|Cash advance rate (p.a.)||21.99% p.a.|
|Min credit limit|
This is the lowest credit card limit that you can request. It is possible to apply for a higher credit card limit but not a lower one than this figure.
|Foreign Currency Conversion Fee (VISA)|
Foreign currency conversion fees are charged when you make a transaction that is converted by a credit card network, such as MasterCard, Visa or American Express, from Australian dollars to a foreign currency. You’ll also incur a currency conversion fee if you make a purchase or obtain a cash advance in Australian dollars while overseas or shopping online with a foreign merchant or financial institution.
|3% of transaction value|
|Complimentary Travel Insurance||No|
|Minimum Age||18 years of age|
|Available To Temporary Residents||Yes - Conditions apply|
|Credit Rating Requirement||Good|
|Annual fee||$79 p.a.|
|Minimum Monthly Repayment||3% or $30 whichever is higher|
|Late Payment Fee||$30|
|Cash Advance Fee||The higher of $4 or 3.0% of the total transaction amount|
|Foreign Currency Conversion Fee|
Foreign currency conversion fees are charged when you make a transaction that is converted by a credit card network, such as MasterCard, Visa or American Express, from Australian dollars to a foreign currency. You'll also incur a currency conversion fee if you make a purchase or obtain a cash advance in Australian dollars while overseas or shopping online with a foreign merchant or financial institution.
|Gambling Transactions Allowed||Yes|
|Additional Cardholder Fee||$0|
- You can enjoy a 0% p.a. for 20 months offer on balance transfers.
- Receive up to 55 interest-free days on purchases.
- Balance transfer rate reverts back to a high cash advance rate at 21.99% p.a.
- There is no rewards program for this card, which means you cannot earn reward points for spending.
Interest-Free Purchases with the HSBC Low Rate Credit Card review
What is interest-free credit?
When you borrow money from lender they will charge you interest on the cash they have lent you. Normally the interest rate will be based on a percentage of the overall borrowed amount.
Because of the way credit works, when you make a purchase something on credit you will normally end up paying more than the original purchase price on your item, once you take into account the interest payments.
However there is one form of credit that can in fact let you pay purchase price of your item, and no more, as long as you stick to the rules. This form of credit is known as interest-free credit.
How does interest-free credit work?
When you borrow money on an interest-free basis you are on a special deal where you do not have to pay any interest for a set promotional period of time. A common deal available is "6 months interest-free", or "12 months interest-free".
What this means is you will not be charged any interest on your purchase for 6 or 12 months after you make the purchase. This allows you to pay off your borrowing steadily, and as long as you pay the full balance before the end of your interest-free period, you won't pay extra charge.
This is an effective way to finance your purchases, but should only be pursued if you can pay the balance off by the end of the promotional period.
Benefits of the HSBC Low Rate Credit Card
- Interest-free purchases. You may enjoy interest-free purchases up to 5 years in over 1,000 participating outlets in Australia. Minimum purchases apply. At the end of the promotional period, a standard cash advance rate applies on any outstanding balance.
- Up to 55 days interest-free. As part of the credit card offer you will also have the benefit of up to 55 days interest-free, which also gives you longer to pay off any day to day purchases you may make on your credit card. This only applies in the situation where you have paid your credit card balance in full and on-time (before the due date).
- $79 annual fee for life. For the entire life of the HSBC Low Rate Credit Card, this card will require an annual fee of $79. Additional cards for friends or family also enjoy $0 annual fees.
- 0% p.a. for 20 months on balances transferred. Don’t worry about paying interest on balance transfers for the next 20 months. To be eligible for the offer, you need to apply and get approved for the account before 30 June 2018. At the end of this period, a standard cash advance rate applies on any outstanding balance.
Features of the HSBC Low Rate Credit Card
- Interest-free purchases. This feature is only applicable in selected stores, but this includes over 1,000 participating outlets in Australia. Depending on the retailer and the offer you take up, there are interest-free packages that last
up to 5 years. You will be sent a statement in the post each month, and will have a number of payment options. You will have the option of overpaying, or sticking to the monthly minimum payment which is normally 3% of the balance, or $30 depending on which figure is larger. A great way to deal with a package of this nature is to pay more than the monthly minimum as often as you can. Minimum purchases apply.
- Up to 55 days interest-free. New cardholders have 55 days of interest-free purchases. Just pay off your balance in full each statement period to enjoy this feature, including any promotional rate balances (ie. balance transfers).
- $79 annual fee. The HSBC Low Rate Credit Card has a annual fee for the life of the card.
- Balance transfer offer. New cardholders will enjoy an introductory balance transfer rate of 0% p.a. for a period of 20 months. This will revert to the normal cash advance rate which is 21.99% and this rate is subject to change.
- Free additional cards. You can acquire multiple additional cards for your family members or even friends at no additional cost.
- Special privileges. The home&Away Privilege program is accessible to all card holders and it comes with benefits such as exclusive offers in over 19,000 international retail outlets. Locally, exclusive shopping offers can be enjoyed in more than 1,500 Australian retailers. Note that special privileges can only be accessed in participating retailers so make sure that you check out the list of retailers near you.
How to apply for the HSBC Low Rate Credit Card
If you’d like to apply for the HSBC Low Rate Credit Card, you can start the application process by clicking ‘Go to site’. The following eligibility requirements apply:
- Income requirements. The minimum income requirement is $20,000 p.a.
- Australian residency and age. You must be at least 18 years old and an Australian resident or citizen.
- Credit card rating. This credit card is not eligible to just any applicant; you need to have a good credit card rating.
- Minimum credit card limit. The lowest credit card limit you can get with this credit is $1,000