HSBC interest free cc

moneysaverz83

Hi I'm about to apply for the 26 month interest free cc.

I plan on making a big purchase of about 5000 and paying off within a year, so thought this may be best option.

Firstly, what is the maximum credit allowance on this card, or typically?

Secondly, when reading the summary box on the HSBC website, I'm sure it said interest free for purchases if balance paid in full by 56days?! I was planning on paying the minimum amount of 2.5% or whatever on the balance. Have I misinterpreted?

Thanks

[Deleted User]

The limit will depend on your circumstances. There's no typical or effective maximum.

You're always charged interest if you don't pay in full month. For the first 26 months, you're ok be charged interest at 0%.

After that, you will be charged at your normal rate so would need to clear in full to avoid paying interest.

moneysaverz83

Thanks, I realized that, but what's this mean:

'Interest free period
Up to 56 days for purchases when you pay your balance in full every month by the due date.'

[Deleted User]

That means you get a maximum of 56 days if not being charged interest on a transaction if you clear in full. It's the maximum gap between making a transaction immediately following a statement and the payment due date of the following statement.

moneysaverz83

Ok thanks -so in a 26 month zero percent offer it's irrelevant?

maxximus75

The 56 days only really comes into effect on purchases that you are paying interest on (ie after the promotional period ends).


So you would still have to pay at least the minimum amount each month as shown on your monthly statement (its not 26 months without payment). If you pay the entire balance off before the end of the promotional period then you would pay no interest at all.

PRAISETHESUN

You have up to 56 days from when you make a purchase until you have to pay interest, if the balance is not paid off by then. For a 0% rate promotional card, the 56 day period still applies, but then since the interest rate is 0%, you don't actually pay any interest until the 26 month promotional period ends. Make sure to at least make the minimum payment, or else they may have grounds to remove the promotional rate and start charging you full-fat interest.

You typically won't know the exact credit limit you'll get until you make the application, but if you have sufficient income to support it, there is theoretically no limit to what they could offer.