HSBC MasterCard: Should I stay or should I go?

Resali

Hi

I have had my HSBC MasterCard since I opened my current account with HSBC in 1998. The rate on the card is 16.9%, which I believe is quite high.

I only use the card in situations where a credit card saves a lot of hassle, e.g. unexpected expense (car repairs), expense whilst abroad (mainland Europe), high value purchases (to be protected).

I am now thinking whether it would be advisable to either:

1. speak to HSBC and see whether I can get a lower rate (What can I reasonably expect?); or
2. apply for a new card elsewhere at a better rate (after going through MSE guides).

My questions:

1. If HSBC offer a lower rate I presume it will be good for my credit score if I stay with my current bank. Is that correct?
2. If I apply for a card elsewhere, if approved, should I then cancel the HSBC card or is there any reason why it would be a good idea to keep the HSBC card (but simply not use it)?

Thanks for your help.

Merry Xmas everyone!

Resali

sharpy2010

HSBC Won't change your rate.

stephane_2

16.9% is still very good these days...what do you expect? You won't get much better.

[Deleted User]

16.9% is excellent. You'd be a muppet to throw that away.

EarthBoy

16.9% is HSBC's standard rate, as advertised on their website, so it's very unlikely they would change this for you. It's also the standard rate at NatWest/RBS and Santander. Santander's Zero card is higher at 18.9%.

Lower rates do exist, but not many of them. Halifax Clarity card is being advertised at 12.9%, but not everybody gets that rate, so they might offer you a higher rate instead.

"...should I then cancel the HSBC card or is there any reason why it would be a good idea to keep the HSBC card (but simply not use it)?"

HSBC don't replace credit cards when they expire if customers never use them.