Uncommonly low earnings
Most of the travel rewards cards reviewed by CreditCards.com help cardholders boost rewards totals by offering bonuses on certain types of spending. The few cards that don’t offer such generous rewards rates help make up for it by charging competitive APRs that are well below average for a travel card.
By contrast, the HSBC Platinum MasterCard offers an uncommonly low rewards rate that gives cardholders just one point for every dollar they spend. However, HSBC still makes cardholders pay for those rewards with a relatively high APR. If you have good credit and are looking for more generous rewards with your spending, you can almost certainly do better with another card.
Middling APR
The HSBC card’s minimum APR of 13.24 percent is slightly below average for a rewards credit card. The typical rewards card charges cardholders a minimum APR of 15.25 percent. But most rewards cards that charge a comparable APR offer significantly more benefits. Meanwhile, the card’s 23.24 percent maximum APR is on the high side for a rewards credit card, making it a riskier choice for cardholders with lower scores. If you can’t afford to repay your debt in full with this card, you can wind up paying far more in interest than you ever earned with rewards.
Almost no benefits
The HSBC Platinum MasterCard also doesn’t offer very many cardholder benefits, making it even harder to justify the card’s higher APR. Unlike most mainstream credit cards, the HSBC Platinum MasterCard doesn’t offer any travel insurance coverage, such as rental car insurance or lost luggage insurance. Nor does it offer many other coveted extras, such as concierge service. The HSBC card does offer travel assistance for cardholders who need extra help while on the road and it scores points with frequent travelers by waiving the card’s foreign-transaction fee. But it doesn’t offer any other unique benefits that can’t be found on less expensive cards.
More flexibility for travel purchases
Flexible redemption is the most appealing perk offered by the HSBC Platinum MasterCard. Unlike most travel cards, HSBC allows cardholders to shop around for cheaper travel and purchase a rewards-funded ticket through another travel website. This can potentially allow cardholders to squeeze more value from their rewards earnings by allowing them to use rewards for less expensive travel. By contrast, many competitors lock cardholders into higher prices by requiring them to redeem rewards-funded travel through the issuer’s site.
The HSBC Platinum MasterCard doesn’t restrict cardholders’ travel dates either, making it less of a pain to book a hotel or flight. However, HSBC does require you to book travel at least 21 days ahead, so you can’t use the points for any last-minute trips.
Reasons to get it:
- You want a flexible travel rewards card that doesn’t restrict travel dates and allows you to book your ticket elsewhere.
- The HSBC offers the lowest APR you can get on a rewards card.
- You already have a relationship with HSBC bank and want a card with the same bank.
How to use it:
- To maximize the value of rewards points, shop around for less expensive travel.
- Plan ahead when using HSBC points for travel. You need to make plans at least three weeks in advance.
- Try to pay off purchases in full to avoid paying relatively high interest.
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