In this brief blog, we are going to discuss the HSBC student credit card, how to get the best credit card rates for yourself and how to manage your credit card.
The HSBC student credit card
The HSBC student credit card is a credit card targeted at students. It is only offered to existing HSBC account holders. You can view the HSBC student credit card summary box here.
The HSBC student credit card will allow you to cover any large purchases, build your credit score and benefit from discounts, exclusive offers for dining experiences, leisure activities and shopping available through HSBC Home and Away.
We looked online to find any reviews of the HSBC student credit cards but we couldn’t find any reviews that were specifically for the HSBC student credit card but we found reviews about the HSBC bank from its day to day customers on Trustpilot. You can view these reviews here.
Unique features of the HSBC student credit card
The HSBC Student Credit Card has a few good features such as a
24 hour worldwide assistance if your HSBC student credit card is lost or stolen.
You can make contactless transactions with the HSBC student credit card
You can also add your card to Apple Pay, Google Pay and Samsung Pay.
You can manage your HSBC student credit card through online banking or through the mobile app. This allows you to check your credit card balance and make payments to any beneficiaries.
You can use your HSBC student Credit Card at any retailer or cash machine that displays the logo on your card. Fees apply and non-HSBC cash machines may also charge a fee. You can also use your HSBC student credit card abroad but some fees may apply.
How to apply
You can apply for the HSBC student credit card by phone, online or in branch.
You can also manage your card using online banking or through the HSBC app.
To be able to apply for the HSBC Student Credit Card you will need to prove that you are already studying or intending to study at a university or college, either full or part-time, in the UK, Channel Islands or the Isle of Man. You can do so with a letter from UCAS stating your place of education.
Is the HSBC student credit card right for you?
If you are an international student with little or no credit history as you have just moved to the Uk then the HSBC student credit card maybe exactly what you need to build some credit history and get access to affordable credit from a well recognised institution like HSBC.
What to consider when getting your credit card?
Whilst the HSBC student credit card may be right for you, there could also be other potential credit cards which suit you better. It is always advisable to use a credit card eligibility checker
Which provides you with all the credit cards you may be eligible for outside of the HSBC student credit card.
When comparing multiple credit cards; below are the things you should look out for before applying.
Each card issuer will have its own lending criteria that you will need to meet before they will provide you with an offer of credit.
There are now credit card eligibility checker platforms which let you know which credit cards you are eligible for and which you have a high probability of getting on application.
Most credit card providers now have their own credit card eligibility systems in place which will let you know if you will be approved for a credit card with them or not.
These tools use a soft credit check t pull your credit file data and hence does not leave any footprints which are visible to the public or harm your credit score.
You should avoid applying for a credit card if you are not confident you will be accepted as rejections for credit could damage your credit score and history. This may then affect your ability to get further credit in the future.
When getting a credit card, the interest rates on the credit card are a very important factor and you should always lookout for the APR figure. The interest rates on the credit card are the rates that will be charged on any outstanding credit card balance which you carry over from one month to another. If you pay your credit card balance in full each month then you will not have any interest to pay.
Credit cards typically come with up to 55 interest-free days on purchases if you don’t carry a balance month-to-month.
You should look at the credit Credit limits when choosing a credit card provider as the credit card limits will determine how much you can spend on your credit card.
Most credit card providers may offer you a credit limit increase if you can show good credit behaviour over a few months.
Rewards and perks
Credit card providers offer various rewards and perks but usually, these are reserved for applicants with high credit scores.
Some credit card providers will have annual fees on their credit cards but these are usually for credit cards with high credit card limits and lots of rewards or perks.
You should always check what fees are attached to your credit card. These can include annual or monthly account fees, cash advance (withdrawing cash using the card) fees, overseas transaction fees and others.
How to get your HSBC student credit card
To get your HSBC student credit card, check to see if you have a credit score first.
If you are unsure of what your credit score is then you should check your credit score from the four credit bureaus in the UK: Experian, Crediva, Equifax and Transunion.
Some of these credit bureaus may charge you a fee to view your credit report so what you can alternatively do is request a statutory credit report which is a free credit report which each credit bureau must provide to you upon you requesting it.
Alternatively, you can also use credit score services such as Checkmyfile and clearscore to check your credit report.
Once you have done this you should then check on a credit card eligibility platform to see what credit cards you are eligible for and then apply for the best credit card. This may be the HSBC student credit card or it could be another credit card from a different provider which suits you better.
What happens to your HSBC student credit card when you graduate?
Once you have graduated, you can still continue to use your HSBC student credit card but you may find that you are now eligible for a better APR credit card which may even offer better rewards and a better introductory period.
This is because if you have made your credit card repayments on time each month you will usually find that your credit score has increased and this makes you more eligible for better credit products. Once you get a job with a regular salary, you may also find your credit card options increase significantly.
Alternatives to a HSBC student credit card
You may not necessarily need a student credit card. Most student bank accounts will offer an overdraft facility of about £3,000 will very favourable repayment terms. This means you can borrow from your bank at a rate that may even be cheaper and pay back whenever you want.
You may also be able to find a normal credit card which isn’t branded for students and offers you a lower APR.
Features of the HSBC student credit card
Representative example: When you spend £500 at a purchase rate of 18.9% (variable) p.a., your representative rate is 18.9% APR (variable).
|Foreign transaction charge||2.99%|
|Purchases interest-free period (days)||56 days|
|MIN credit limit||£0|
|Max credit limit||Subject to status: £500|
|Credit limit note||Subject to status|
|Additional cards available||1|
Fees and charges of the HSBC student credit card
|Annual/monthly fees £0||£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|
HSBC student credit card application requirements
|Available to existing customers|
As you are considering a HSBC student credit card you may be wondering what are the advantages or disadvantages of a student credit card. We have outlined this below:
Advantages of a student credit card
Some of the advantages of a student credit card are listed below.
Credit cards have payment protection cover:
Due to the consumer credit act all goods purchased using a credit card which are over £100 are covered by the payment protection scheme. This means if goods are faulty or were not delivered, then your credit card provider must refund you. This cover does not apply to two seperate transactions not amounting to £100 separately, even if they were bought in the same store.
Student credit cards help build your credit score:
Student credit cards help build your credit score as they reflect how often you repay your monthly credit card debt on your credit file. They also reflect your credit utilization( this is how much credit you use in relation to your credit limit) and a low credit utilization will aid your credit score whilst utilizing your credit to its limit will reflect negatively on your credit file.
Access to emergency fund
Student credit cards help by providing you access to emergency funds in case you have any financial emergency which requires immediate help. This may be a cheaper method of borrowing than payday loans or other alternative short term finance.
Cashback and rewards
Student credit cards may also provide cashback and rewards which will be targeted towards students such as cashback for grocery shopping(which you will do a lot of when living on campus) or cashback on things you may do such as going to the cinema etc
Some student credit cards will have interest free periods which are long enough for you to put your finances in order before you start repaying any credit card balance you owe.
Pay for expensive items
Student credit cards allow you to buy more expensive things which you may need and spread the payments over a long period. This could be things such as paying a down payment on your rental accommodation.
No annual fees
Most student credit cards do not have an annual fee.
Easy to qualify for
Most student credit cards are very easy to qualify for as they are targeted towards students with little or no credit history.
Disadvantages of a student credit card
Some of the disadvantages of a student credit card are listed below.
Student credit cards are a bit restrictive:
They tend to offer lower credit limits(usually around £500) and higher APRs are standard. Some may see these are prejudice terms and there might be some truth to that. Student credit cards also have higher minimum payments: these are the minimum you must pay back every month to ensure your credit card provider does not charge you any fees.
Note: Although paying the minimum payment will prevent you from incurring any further charges you will still get charged interest on the difference between your minimum payment and what you owe per month. This could easily turn out to be very expensive for you and should be avoided at all cost.
Avoid the ATM:
Using your credit card at the ATM will incur you huge fees up to 3% of your withdrawal and there are no interest free periods for using your credit card at the ATM. This is even made worse if you use your credit card at a foreign ATM as not only will you incur this charge you will also incur an exchange rate charge.
The APRs on student credit cards are much higher as the credit card providers see this area as a very risky area as most students won’t have a full-time job and they may not be able to pay back what they have borrowed. To compensate or to balance the books the high APRS are charged so those who pay back could essentially cover the costs of those who borrow on their credit cards but don’t pay back.
Rejections can damage your credit score.
Because getting rejected for any credit application can damage your credit score you should only apply to credit cards which you are sure you will be approved for.
In this brief guide, we discussed the HSBC student credit card. If you have any questions then please let us know.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.