By: Peter Stephens | Updated: 26th February 2021.
HSBC’s Purchase Plus Credit Card could be a good match for those looking for a solid combination of 0% purchase and balance-transfer offer. Since 18 months isn’t the longest 0% period on the market, the key here is the combination of both 0% purchases and balance transfer. Do note that there is a 2.9% fee on balance transfers.
0% on purchases for 18 months
0% for 18 months on balances transferred in first 60 days
KEY SCORES:
The HSBC Purchase Plus Credit Card offers a number of different features which could make it appealing to a wide range of consumers. It has a 0% interest period for balance transfers made in the first 60 days, as well as a 0% interest period on new purchases during the 18 months following account opening. It could be ideal for consumers who are seeking to reduce the interest they pay on existing debt and also enjoy greater financial flexibility on new purchases. Although it is possible to obtain a longer 0% interest balance transfer period or a longer 0% interest period on new purchases elsewhere, the card combines the two features to broaden its appeal. No annual fee plus the potential to earn rewards are two other selling points. However, a second card for use internationally may be required due to its non-sterling transaction fee of 2.99%
I have been writing for The Motley Fool since 2013, and have experienced the booms and busts of the UK economy for a number of decades both as an investor and a consumer. I have held various senior management positions during my career, while also setting up my own manufacturing company in 1996. It was subsequently sold in 2007. I have a keen interest in consumer finance, as well as in the stock market.
The opportunity to obtain a 0% interest rate on balance transfers as well as a 0% on purchases over an 18-month period means that the card could appeal to a wide range of consumers. It could reduce the amount of interest paid on existing debt, while also providing financial flexibility on new purchases. It is possible to obtain a longer 0% interest period on balance transfers and purchases elsewhere. However, in many cases it is a case of it being ‘either/or’ in terms of obtaining a longer 0% interest period on balance transfers or on new purchases. Therefore, the HSBC Purchase Plus Credit Card offers a rounded set of features which could make it an attractive main credit card for everyday use. Its rewards offering and lack of annual fee enhance its appeal, although a second credit card may be worth having for travelling abroad due to its non-sterling transaction fee.
The card is available to all UK residents over the age of 18 who do not have an HSBC Basic Bank Account. An annual salary or pension of £8,500 is required. Applying online is relatively straightforward, with a pre-filled form for existing HSBC customers reducing the amount of time it takes to apply. The interest rate quoted for the card is, as with all cards, representative. It is offered to the majority of successful applicants, with the remainder receiving a different rate. This could make the card less appealing compared to peers depending on an individual’s personal circumstances.
Applications can be made online, by phone or in branch. Temporary workers, individuals who are on zero-hours contracts and the self-employed are advised to apply by phone or in branch. Information such as identification, proof of address and a recent bank statement will be required in order to apply. Individuals seeking to transfer balances from existing credit cards will also need details about their current debt.
The card’s diverse range of features means it could be a worthwhile ‘one-stop’ option for consumers. It offers a 0% interest period on balance transfers for 18 months as well as 0% interest on purchases for the same amount of time. Although it is possible to find cards with longer 0% interest periods in the two areas, finding them on the same card could prove to be challenging. Therefore, for consumers who are seeking to reduce the interest being paid on an existing balance as well as 0% interest on new purchases, the card could be attractive. No annual fee and the opportunity to earn rewards improve its relative appeal. A second credit card for use abroad may be required, though, as a result of the card’s non-sterling transaction fee.
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