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0% Interest for 8 Months - HSBC Credit Card Balance Transfer

Posted By: jas44, posted 2007/05/04 08:07
HSBC are offering one of the most generous interest free balance transfer deals going at the moment.

* 0% Balance Transfer until 1 January 2008 (8 months)
* Reverts to 15.95% thereafter (...when it will be time for another balance transfer if it hasn't been paid off!!)
* Apply by 31 May 2007

This has the potential to save many, many $$$. For example, if the balance of a credit card with an outstanding balance of $5000 @ 18% interest were transferred to HSBC, it would save $600 in interest!!!
Expiry date:2007/05/31
  • jumpingjack2007/05/05 00:00:23
    Is there any balance transfer fees? Are there any penalties if I move money owing from another card to this one?

  • ashley70702007/05/05 00:25:39
    Is there any balance transfer fees? Are there any penalties if I move money owing from another card to this one?


    Your credit rating would get worse.
  • nod2007/05/05 01:31:32
    I have never moved CC balances and was not aware that your credit rating would be affected! Do you know how that works Ashley7070?

    If it did not affect your rating then 8 months interest free is good. So long as they did not sneak in any balance transfer fees - which they sometimes do

    Thanks for the deal post Jas44
  • jayne2007/05/05 01:59:21

    Get a cool 0% p.a. until 1 January 2008* on balance transfers~ with HSBC’s Low Rate Credit Card. With your interest frozen on balance transfers and $0 annual fee in the first year, you’ll be able to spend your money on more important things.

    Cool off with these great features:
    [*]0%p.a. until 1 January 2008* on balance transfers~
    [*]Low ongoing variable interest rate of 11.95%p.a. on purchases
    [*]$0 annual fee for the first year and then only $39 p.a.
    [*]Up to 55 days interest-free on purchases^
    [*]Access to HSBC's home&Away Privilege Program with Instant Rewards in over 40 countries[/LIST] HSBC's Low Rate Credit Card makes life easy:
    [*]Cash withdrawals at over 800,000 ATMs worldwide
    [*]Repayments at any HSBC branch, by mail, BPAY®, telephone, direct debit, online or at Australia Post
    [*]Credit Cards Online for quick, easy and secure access 24 hours a day
    [*]Worldwide acceptance at over 22 million Visa merchants[/LIST]
  • jayne2007/05/05 02:01:37
    From T&Cs -

    Balance Transfers:
    ~HSBC may allocate payments we receive from you to pay the total amount owing in any order we see fit, including applying any and all payments made to your HSBC credit card account to reduce the balance(s) transferred first and then to any subsequent purchases.

    Doesn't this mean if you make further transactions on the card, and make some payments, they will take the payments off the balance you first transferred, leaving the new purchases to accrue interest until you pay off the whole lot?

    That's a catch you might have to watch out for.
  • jumpingjack2007/05/05 02:36:33
    Good spot jayne.

    nod - any time you take out a cc or have your credit checked it affects your credit rating - but more importantly in this case the number of cards/credit accounts you have also affects that rating.
  • nod2007/05/05 03:37:18
    I did not think that the act of getting a card actually affected your rating, just misuse of it.
    But I guess just the act of accruing credit is the problem. Good thing I only have one :D

    Thanks for looking into the CC info in more detail Jayne. A VERY important catch to watch out for
  • jas442007/05/05 11:01:05
    The key with balance transfers is to never use the new card - just focus on paying it off (or putting away the cash (in an online account at 6.25%!!) so that you can pay it off before the eight months period interest free has expired).

    If you need to make purchases, use your original card (the banks will not make you close it).

    Re credit rating - your credit rating shows is a record of every application you have ever made for credit. Banks get nervous if this has too much on it in a really short period of time i.e. if you applied for six credit cards in six months, banks would start to reject your applications because you become a walking liability who could continue to spend but never pay anything back. However, if you manage your credit sensibly and only apply for credit every 12 months (and are paying everything on time!!) then you really shouldn't have any issues.
  • jas442007/05/05 11:08:43
    Check out http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1107182516,76509, for more details on balance transfers. It goes into the in's and out's of ditch and switch and other brilliant details.
  • nod2007/05/05 16:11:32
    Popping the money in an online account that gives you a reasonable amount of interest would technically mean that you are making money on your CC purchase :D
    Well sort of

    The interest free period can be used as a loan I guess. Being very careful not to make any further purchases on that card. Not that you should be making more purchases if you already have a large balance to pay off!!

    CC can be fantastic tools but need to be used very carefully and you need to be fully aware of all the little loop holes that the banks attach to them. Banks are all about making money. They are not going to hand over an interest free period if they have not done their homework and decided that on average they are going to make a lot of money on the people that take up the offer.
    But use it wisely and it appears you may just make it work.

    Do any of the banks charge you to transfer a balance off one of their cards? I mean if you took a balance of $500 off your ANZ card for example, do they charge you to pop that balance on your new HSBC card?

    Thanks for answering the questions Jas44
    MSE do have a lot of info on their site
  • ashley70702007/05/05 16:25:37
    Your credit rating gets affected every time someone pulls your credit information from veda advantage. Its not only cc companies that are allowed to pull these information, real estate agents , mobile phone companies ,etc. It is good practice to ask for your credit file from Veda advantage at least once a year as stolen identity is a big problem these days.
  • nod2007/05/07 03:58:21
    Good point re keeping an eye on your credit rating for identity theft. Happens all too often

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