In this review I will go through the pros and cons of using HSBC Premier credit card for your spending. The purpose of writing this review is to help others understand when it may or may not be the right choice for you.
Who is this for?
Only HSBC Premier customers are eligible to apply for this card. There are different ways to qualify for this account level which depend on income level, savings or investments with HSBC UK, or other products offered by HSBC UK.
What does it cost?
No annual fee – This credit card is free for all HSBC Premier customers.
If you plan on using this card for your travel abroad, please be aware that this card will charge you fee of 2.99% on any foreign transaction. This is similar to what you would find using any HSBC credit card (e.g. Classic, Rewards, Premier, World Elite).
Interest rate is 18.9% APR variable which is charged on the balance. To avoid interest fees always pay the full balance on or before the due date. This way regardless of how much the interest rate is on your credit card, you will not pay any interest fees = FREE. A good way to avoid late payments is to set up direct debit.
Perks & Benefits
- LoungeKey membership means you can relax in over 750 airport lounges worldwide for just £20 per person per visit, subject to availability
- 2 years extended warranty provided by Domestic & General Insurance PLC, on selected household appliances
- 10% discount on selected hotels with Expedia
- 10% discount on selected hotels with Agoda
- 12 months complimentary Expedia+ Gold membership
How do I earn points?
Points earned are based on 3 types of transactions:
- 2 points for every £1 – Non-sterling transaction or directly with airlines.
- 1 point for every £1 – Sterling currency transactions.
How can I use the points I earned and what are they worth?
There are multiple ways to spend the reward points that you have earned. The below is a list of some of them:
| Category | Partners | Conversion |
|---|---|---|
| Airlines | British Airways, Etihad, Asia Miles, and Singapore Airlines. Every 2 points are worth the equivalent of 1 Frequent Flyer Mile. | 1,500 points = 750 airline miles |
| Vouchers | M&S, Amazon, and Sainsbury’s. | 1,500 points = £5 |
| Wine | Laithwaite’s quality wines |
The above is only a selection of what you can use your well-earned points towards.
How much are HSBC Reward Points worth?
Below is an illustration of how much HSBC reward points are worth:
| Points | Voucher Value (£) | Airline Miles |
|---|---|---|
| 5,000 | £16.66 | 2,500 |
| 10,000 | £33.33 | 5,000 |
| 25,000 | £83.33 | 12,500 |
| 50,000 | £166.66 | 25,000 |
| 100,000 | £333.33 | 50,000 |
1,500 points = 750 airline miles (British Airways, Asia Miles, Etihad etc.)
When comparing reward points between HSBC and American Express, the latter option provides you most value:
| Reward Scheme | Point value in £ |
|---|---|
| American Express | 1,500 points / 1000 * 4.5 = £6.75 |
| HSBC | 1,500 points = £5 |
It is easy to justify this card because there is no annual fee to consider. Meaning, any points you earn by using the card is practically FREE MONEY. Who does not like free money or perks? Remember, that non-sterling transactions earns 2 points per £1 but that these also come with a foreign transaction fee as mentioned earlier in this article.
Point Calculation
This illustrates the points earned per year assuming the spend is on monthly basis.
The column “Spend GBP” illustrates the monthly spending where all transactions are made in GBP. The “Non-Sterling” column presents transactions made in a foreign currency converted to GBP. Points columns represent the aggregate number of points earned in relation to the monthly spend.
| Spend GBP (£) | Non-Sterling (£) | Monthly Payment incl. fees (£) | Points (12 months) | Point Per £ |
|---|---|---|---|---|
| 250 | 0 | 250 | 3,000 | 1 |
| 500 | 0 | 599 | 6,000 | 1 |
| 750 | 0 | 750 | 9,000 | 1 |
| 1,000 | 0 | 1,000 | 12,000 | 1 |
| 1,250 | 0 | 1,250 | 15,000 | 1 |
| 1,500 | 0 | 1,500 | 18,000 | 1 |
| 2,000 | 0 | 2,000 | 24,000 | 1 |
| 0 | 250 | 257.48 | 6,000 | 2 |
| 0 | 500 | 514.95 | 12,000 | 2 |
| 0 | 750 | 772.43 | 18,000 | 2 |
| 0 | 1,000 | 1,029.90 | 24,000 | 2 |
| 0 | 1,250 | 1,287.38 | 30,000 | 2 |
| 0 | 1,500 | 1,544.85 | 36,000 | 2 |
| 0 | 2,000 | 2,059.80 | 42,000 | 2 |
Summary
If you qualify for Premier level at HSBC then this credit card is a strong contender because it has no annual fee, you earn points when paying with the card, and there a perks like extended warranty that you can use to cover purchase of electronics (e.g. TV, Playstation, Xbox, Mobile phones) plus Gold+ membership with Expedia.
Points earned using HSBC Premier credit card can be considered a small bonus as they do give you the option to get free airline miles or shopping voucher on a card that has no annual fee. That said, the points earned are worth less than the points earned using an American Express card.