HSBC Student Credit Card review
- Representative example:
- When you spend £500 at a purchase rate of 18.9% (variable) p.a., your representative rate is 18.9% APR (variable).
- Minimum credit limit
- £250
- Interest-free each billing period
- Up to 56 days
- Account fee
- £0
Our verdict
Existing HSBC student account holders can apply for this card to cover unexpected expenses and build a good credit history.Like most student credit cards, HSBC's card comes with a low credit limit and no annual or monthly fee. Perks can be few and far between in the student credit card space, but if you take out this card you will enjoy personalised cashback offers through the Visa Offers programme.
Student cards also typically don't have the most competitive rates around (in part due to the limited credit histories of many of the cards' users). However, provided you clear your balance in full each month, you will be able to take advantage of up to 56 days of 0% interest on your purchases.
It's smart to be cautious about taking out a credit card while studying. If your income is minimal and paid infrequently, be realistic about how quickly you will be able to pay off any borrowing. On the plus side, if you don't carry a balance from month-to-month and you use this card responsibly, it could help you to handle fluctuating costs, earn you a little cash back and help kick start a positive credit record – standing you in good stead for your future borrowing requirements.
As with most student credit cards, you'll need to hold a regular student bank account with HSBC in order to be eligible to apply.
Pros
- Since it's a student card, you aren't required to have a super-high credit score in order to be approved
- Up to 56 days to spread the cost of purchases (provided you pay off your balance in full each month)
- Customers report excellent customer service when dealing with HSBC
- No annual fee
Cons
- To apply, you must hold a student bank account with HSBC
- You may be offered an opening credit limit as low as £250
Details
Product overview
| Issuer | HSBC |
| Network | Visa |
| Annual/monthly fees | £0 |
| Minimum credit limit | £250 |
| Maximum credit limit | Subject to status: £500 |
| Credit limit note | Subject to status |
| Purchases | 18.9% |
| Purchases interest-free period (days) | 56 |
| Balance transfers | 18.9% |
| Additional cards available | 1 |
| Potential costs | 8.3Great |
| Doing its job | 6.5Standard |
| Extras | 8.1Great |
| Overall Finder Score | 7.7Great |
Fees and charges
| Minimum monthly payment | 2.5% or £5 (whichever is greater) or the total of any interest, default fees and charges plus 1% of the outstanding balance. |
| Annual/monthly fees | £0 |
| Foreign usage charge (EU) | 2.99% |
| Foreign usage charge (rest of world) | 2.99% |
| Cash advance fee | 2.99% (min. £3) |
| Late payment fee | £12 |
| Duplicate statement fee | £0 |
| Exceeding limit fee | £12 |
| Additional card fee | £0 |
| Dormancy fee | £0 |
Application requirements
| Minimum Age | 18 |
| Availability | Available to existing customers |
The HSBC Student Credit Card is issued on the Visa network (used by a whopping 4.2 billion cards), so you'll be able to use it at more than 100 million merchant locations across more than 200 countries and territories.
How does it compare with other student deals?
Finder Score for credit cards
To make comparing even easier we came up with the Finder Score. Costs, perks and suitability across 120+ cards are all weighted and scaled to produce a score out of 10. The higher the score the better the card – simple.
Read the full methodologyApproval for any credit card depends on your status. The representative APRs shown represent the interest rate offered to most successful applicants. Depending on your personal circumstances, the APR you're offered may be higher, or you may not be offered credit at all. Fees and rates are subject to change without notice. It's always wise to check the terms of any deal before you borrow. Most of the data in Finder's comparison tables is provided by Moneyfacts.
Repayment options
You can make manual repayments through HSBC's app by logging in to your online banking or over the phone (0345 7404 404). Alternatively, you may wish to set up a direct debit.
A direct debit protects you from forgetting to make a repayment and damaging your credit score – making it harder and more expensive to borrow money in the future – and getting hit with a penalty fee (£12) as a result.
You can arrange a direct debit for repayments when you apply for the credit card. The table below shows the options available.
Choose from the following direct debit options for your monthly repayments:
| Minimum amount | |
|---|---|
| Fixed amount | |
| Fixed percentage | |
| Full amount |
How to apply
If you're an existing HSBC student banking customer and you've compared cards and settled on the HSBC Student Credit Card, provided you're registered for internet banking you can log-in and apply in a few minutes using the secure online form. Before you apply, check that you meet the eligibility requirements and have the information and documents you'll need to make the process as straightforward as possible.
Frequently asked questions
What credit limit will I get with the HSBC Student Credit Card?
If HSBC offers you this deal, it will specify a personalised credit limit based on HSBC's assessment of your situation. The minimum limit offered on the card is £250, while the maximum is £500. Once you've had the card for a while and shown HSBC you're reliable, you may wish to apply for a credit limit increase.
Can I withdraw cash using the HSBC Student Credit Card?
Although it's possible, withdrawing cash from a credit card account is generally not a good idea, as "cash-like transactions" (such as withdrawing cash at an ATM, getting cashback at the till, spending at a casino or buying currency) often incur steep fees and/or higher rates of interest.
The cash advance fee on the HSBC Student Credit Card is 2.99% (min. £3). For example, if you withdraw £50, you'll incur a fee of £3.00. Withdraw £250 and you'll incur a fee of £7.48.
The interest rate on this part of your balance will be 23.6%, which is 25% more than the standard purchase rate (chargeable from the day of the transaction – the card's usual "up to 56 days interest-free" grace period won't apply).
Can I manage the HSBC Student Credit Card from an app?
Yes. You can manage this card through HSBC UK's free mobile banking app.
How much does it cost to use the HSBC Student Credit Card abroad?
Non-sterling transactions are subject to a 2.99% charge (which is very standard). For example, if you spend 200 euros (£164.83), it'll cost you around £4.93 in fees.
What is the minimum payment on the HSBC Student Credit Card?
Each month, you must pay at least 2.5% of your balance at that point or £5.00 – whichever of the 2 figures is greater. So if you had, say, £180.00 outstanding, you'd pay £5.00, and if you had £800.00 outstanding, you'd pay £20.00.
Paying only the minimum required amount each month is generally not advisable as it tends to be a very expensive way to borrow money, which can lead to persistent debt.
Do I need to be an existing HSBC customer to apply for the HSBC Student Credit Card?
Yes, you must already hold a HSBC student bank account.
What does "Up to 56 days interest-free" on purchases mean?
Almost all credit cards offer you a "grace period" in which to settle your purchases. But to enjoy this feature, you have to clear your full balance each month (cash withdrawals and non-sterling transactions sadly tend not to benefit from this feature).
Let's say you make a purchase using the HSBC Student Credit Card on the 1st day the month. Shortly after the end of the month you receive your statement and bill from HSBC which needs to paid by, say, the 25th of the month. If you then pay off your balance in full on the 25th, you won't be charged interest on that purchase, and you'll have enjoyed 56 days interest-free.
