The HSBC Rewards Credit Card: A Detailed Review of Pros and Cons

Dive into the world of credit cards with this comprehensive review of the HSBC Rewards Credit Card, including its advantages and potential downsides

In the UK credit card market, the spotlight often falls on the flashy American Express cards with their high fees and shiny metal designs. But quietly sitting in the wallets of many British banking customers is the HSBC Rewards Credit Card.

It isn’t the loudest card on the market, but for existing HSBC customers, it poses an interesting question: Is it worth switching your spending to this fee-free Mastercard?

Here is an honest, detailed review of the pros, cons, and hidden details of the HSBC Rewards Credit Card.

The “At a Glance” Snapshot

• Card Type: Reward Points (Mastercard)
• Annual Fee: £0
• Representative APR: 26.9% (Variable)
• Eligibility: Generally available to existing HSBC UK customers only.
• Best For: People who want a simple “set it and forget it” rewards card that works everywhere (even where Amex is rejected).

The Engine: How You Earn Points

Unlike the confusing tiered systems of some competitors, this card is simple—perhaps too simple for serious points chasers.

• The Standard Rate: You earn 1 Reward Point for every £5 spent.
• The Value: 100 Points is roughly equal to £1.
• The “Real” Return: This equates to a 0.2% return on your spending.

⚠️ The Reality Check: Compare this to the (free) Amex Everyday Cashback card which offers 0.5% to 1%, or the Chase UK debit card which offers 1%. The HSBC Rewards card’s earn rate is undeniably low. You would need to spend £500 just to earn £1 worth of rewards.

The Boosters (How to beat the low rate)

HSBC throws in a few sweeteners to make the math look better:

1. Welcome Bonus: You usually get 2,500 points (worth £25) just for making your first transaction. This is a generous “free lunch” for a no-fee card.
2. Anniversary Bonus: If you spend over £10,000 in a year, you get another 2,500 bonus points (another £25).

The Pros: Why You Would Get It

If the earn rate is low, why does this card exist? It relies on utility and accessibility.

1. The “Everywhere” Factor (Mastercard) This is the card’s superpower. While American Express offers better rewards, you can’t use it at your local council, some small cafes, or certain utilities. The HSBC Rewards card is a Mastercard, meaning it is accepted virtually everywhere globally. It is the perfect “backup” card for when your Amex is declined.

2. Flexible Redemptions (Pay with Rewards) You don’t need to save up for a flight. You can use the Mastercard Pay with Rewards app to simply erase purchases. Bought a coffee? Use points to pay for it. You can also redeem for vouchers at major retailers like Amazon, M&S, and Boots.

3. No Annual Fee It costs nothing to keep in your wallet. This is crucial for a card that might not be your “daily driver” but serves as a backup.

4. 0% Interest Periods HSBC often offers introductory 0% interest periods on purchases or balance transfers for new cardholders (e.g., 6–12 months), making it a useful tool for spreading the cost of a large purchase while earning a few points.

The Cons: The Dealbreakers

1. No Airline Transfers (The “Premier” Wall) Crucial Distinction: Unlike the HSBC Premier credit cards, the standard HSBC Rewards Credit Card does NOT allow you to transfer points to British Airways Avios, Singapore Airlines, or other airline partners. Your points are stuck as cash/vouchers. If you want travel miles, you must upgrade to an HSBC Premier account.

2. Foreign Transaction Fees (The Travel Trap) Despite being a travel-friendly brand, this card charges a standard 2.99% non-sterling transaction fee.

• Scenario: If you spend £100 in Spain, you will earn 20p in rewards but pay £2.99 in fees. Never use this card abroad.

3. “Existing Customers Only” You generally cannot apply for this card “cold.” You usually need to already hold a current account or other product with HSBC UK to see this offer in your online banking.

Verdict: Who is this card for?

This card is NOT for the “Travel Hacker” or the “Points Optimizer.” The 0.2% earn rate is simply too low to compete with Amex or Chase.

However, it is an excellent “Gap Filler” Card.

You should get this card if:

• You already bank with HSBC (making the application instant).
• You want that easy £25 welcome bonus.
• You need a reliable, fee-free Mastercard to use in the 10-20% of places that don’t take American Express.

You should skip this card if:

• You are eligible for HSBC Premier. The HSBC Premier Credit Card (also free) earns significantly more (approx 0.5% – 1%) and allows airline transfers.
• You want to use the card abroad (get a Halifax Clarity or Monzo instead).