HSBC is an acronym for Hong Kong and Shanghai Banking Corporation. It is a multinational British financial and banking services holding company.one of their products is a HSBC credit card. HSBC is the 7th largest bank in the world. As of December 2016, the company had total assets of $2.3 trillion. It has approximately 38 million clients and 3,900 offices in 67 territories and countries all over the world.
The financial institution’s main focus is personalized banking services. The most common are:
What Is The HSBC Cash Rewards MasterCard® Credit Card?
It is an HSBC credit card and one of the best cash back credit cards. One of the reasons it is popular is the 10% anniversary bonus. The HSBC cash rewards MasterCard credit card awards 1.5% cash back on any purchase. Additionally, each year users are given a 10% bonus on the cash back they have earned. This makes the rewards reach a total rate of 1.65%.
HSBC Credit Card Features
Introductory offers are one of the features of this credit card. If you spend $500 or more in the first three months after opening an account, you get $150 cash back. For the first 15 months, you get a 0% introductory APR on balance transfers. Afterward, there is a competitive variable APR of 24.74%, 18.74% or 14.74%. The card does not have fees for additional cards for authorized users, foreign transactions fees, and annual fees. Other features and benefits are:
It provides extended warranty for all goods you purchase. It doubles the original warranty with up to one additional year. Clients are offered with Identity Theft Resolution should their identity be compromised. If you see an item selling for less within two months of purchase, price protection will refund the difference. Lastly, purchase assurance will cover most items from theft or damage.
Travel benefits are part of the package. As a cardholder you get:
You have the option of making mobile payments using Samsung Pay, Apple Pay, and Google Play. There is an option of making contactless payment, which offers safe, easy and fast checkouts. Last but not least, enhanced protection is offered by the security chip when used at terminals that are chip-enabled.
How It Compares
It is in your best interest to evaluate all available options when testing a credit card. Information is a major factor at this point. The HSBC cash rewards MasterCard has been evaluated against three major competitors namely:
HSBC Cash Rewards Mastercard
The Cash Rewards MasterCard from HSBC offers an easy way to earn rewards irrespective of your purchases. Every purchase has a 1.5% cash back. Unfortunately, there aren’t any bonus categories. However, there is a sign-up bonus that is similar or better than other credit cards.
Every year you get a bonus for your rewards. There is also a 0% Intro balance transfer APR for the first 15 months. Additionally, you get some protections for traveling and shopping. Since it does not have an annual fee, it is a great way to earn cash back.
The reward from this card is 1.65% cash back when the anniversary bonus is applied.
The 10% anniversary bonus is the major earning point for this HSBC credit card. All cash back rewards you earned in the previous year will earn you a 10% anniversary bonus. When you combine the awards earned and this bonus, you get a total of 1.65% cash back on everything you have purchased. The money is usually disbursed after one week from your anniversary.
There are some criteria you have to meet to qualify for the anniversary bonus. For starters, your account needs to be in good standing and active. Good standing, in this case, is not being delinquent on payments or over the credit limit. Active in this case means having a minimum of one transaction that met the mark for cash back rewards.
There are a number of options for redeeming cash from an HSBC credit card. However, the following are the two easiest methods:
- By depositing it directly into an HSBC consumer savings and checking account
- For statement credits (this move lowers your account balance)
Of the two methods mentioned the easiest and fastest method is the statement credits option. Take note if you have an eligible HSBC Bank account, depositing the rewards is the better option. There are other ways you can redeem your cash back. These methods require more effort.
For example, you may be required to make specific purchases at specific times. For instance, you may be required to book travel by using specific services. You will not get the total value of your rewards even after following the rules. Therefore, it is wise to stick to direct deposits and statement credits.
If exploring other options is not your thing, you can redeem using the methods below. The terms of your particular HSBC credit card will show you how you can redeem rewards using:
The main attraction of the HSBC Gold MasterCard is the 0% Intro APR period of 18 months. Apart from this, the card is simple. For starters, this HSBC credit card does not have any rewards. Things like cash back and anniversary bonus do not exist.
One benefit you can enjoy would be the lack of an annual fee. Additionally, other terms are very lenient. They do foreign transactions at no additional cost. Evidently, it is not the most exciting card you can come across. All the same, it is a top pick for the credit cards with 0% intro APR.
If you plan on paying off a large balance or some purchases over time without accruing interest, this might be the best option for that. The most attractive feature is the 0% APR for balance transfers and purchases for the first 18 months. It is a very competitive offer. That is why the card is among the top cards with 0% purchase APR periods.
The APR can be used to pay down a balance at no extra cost. Make sure you pay the minimum amount required. If you don’t, you risk losing your introductory rate. You also risk getting stuck with the regular purchase APR.
You can make sure you pay off all balances without accruing interest. The balance you have to pay needs to be divided by the number of months needed to pay it. The result will be the amount you need to pay each month. Just to be safe, aim to pay at least one month early.
This HSBC credit card does not have an annual fee. As such it is free to use. Make sure you pay your balance on a monthly basis to avoid interest charges from accruing. Remember interest will not accrue during the 0% Intro period.
The HSBC Gold MasterCard does not have any foreign transaction fees. You can comfortably use the card outside the country. Foreign transactions fees should not worry you as is the case with other similar credit cards.
Each year you will get a waiver on the first late fee should the need arise. It is a favorable term for any cardholder. Make sure you use it only when necessary. To avoid late fees, try setting up automatic payments. An easy way to avoid interest is setting up an autopay to pay all balances in full when they are due. This is possible for all credit card issuers.
Chase Freedom Unlimited
The Chase Freedom Unlimited is the best card to start with for people new to miles and points. Unlike any HSBC credit card, it is not easy to get approved. However, it will ensure you build a relationship with the issuer. This allows you to access more valuable cards such as the Chase Sapphire Reserve.
Freedom Unlimited does not have an annual fee. It means you can keep it open for a long duration without paying anything. As long as the card is kept open, the rewards earned will never expire. An unlimited 1.5x return makes it a great card for big spenders.
Take note the Chase Freedom Unlimited uses the 5/24 rule. It is a rule specifically for Chase cards. It means applicants with five or more cards will be automatically rejected. This only happens if the cards were opened and used in the past two years.
After spending $500 in the first 90 days, you get a sign-up bonus of $150. The bonus is similar to what you would see in an HSBC credit card. There is an additional bonus of $25. It works only when you add an authorized user, and they make a purchase within the first 90 days.
One of the benefits of Chase Freedom Unlimited is you do not have to keep track of bonuses. Additionally, you don’t need to worry about your spending. The card gives a 1.5% cash back on every purchase with no caps or limits.
Keep in mind that the cash back is in the form of 1.5 points for each dollar spent. Although the rate is not great, it is also not bad for any cash back card. If your main use of a credit card is cash back, you will be better off with Citi Double Cash Card. It offers a 2% cash back on any purchase.
Citi Double Cash Card
In the long run, a Citi Double Cash Card is considered to be better than any HSBC credit card. The main reason for this is the high overall rewards rate. Citi Double Cash offers users 1% cash back. An additional 1% is offered when the purchase is paid off.
In essence, this makes 2% cash back. It is significantly higher than the rate you would get on any HSBC credit card. In fact, it is also higher than most cards whose rate is 1.5%. Unfortunately, the card does not offer any bonuses.
The lack of a bonus reduces the card’s short-term value. With this in mind, the HSBC cash rewards MasterCard may be a better option. Citi Double Cash card is better only if you spend more than $57,000. If it takes you more than a year to spend this kind of money, the double cash card is not the best option.