What is HSBCâ€^™s Balance Transfer Limit?

A balance transfer lets you move debt from one account to another. When done correctly, this can help save you a sizable amount of money and help pay down your balances faster. However, not all balance transfers are the same. If you are considering a balance transfer to an HSBC credit card, here’s what you need to know about restrictions, fees and the ways to improve your chances of approval. 

What is HSBC’s balance transfer policy?

When conducting a balance transfer with HSBC, it may take at least 7-10 business days for your Balance Transfer to be processed. The transfer amount cannot exceed the available credit limit on your HSBC Credit Card, including fees, and while the balance transfer is being completed, you are responsible for paying the other lenders until your transfer is complete. Most importantly, when conducting a balance transfer with HSBC, fees will apply totaling up to $10 or 4% the amount transferred, whichever is greater. HSBC also requires that you complete your balance transfer within 60 days of opening your account to qualify for the 0% interest offer. Finally, HSBC will evaluate your credit when determining whether to approve your request, and so therefore, building up a strong credit score is the best way to get approval.

Special HSBC Balance Transfer Offers

In addition to its traditional balance transfer offering, HSBC has two special balance transfer options:

1. An introductory Balance Transfer is a special offer that customers may receive at account opening. They will have 60 days from account opening to take advantage of this offer.
2. A promotional Balance Transfer is a special offer that customers may receive for their existing HSBC Credit Card. As was the case with the introductory balance transfer, customers will have 60 days to take advantage of this offer.

How does HSBC’s balance transfer policy compare to other card issuers?

The goal of a balance transfer is to save money, and therefore the most valuable balance transfer credit cards come with three important features : (1) 0% introductory APR offer for balance transfers; (2) $0 annual fee; (3) 0% balance transfer fee.

HSBC’s balance transfer policy falls short, with high balance transfer fees totaling up to $10 or 4% the amount transferred, whichever is greater. This is an important factor to weigh when considering a balance transfer to an HSBC credit card.

Conclusion

Transferring one’s balance is a useful way of consolidating debt and saving money in the long-term, and HSBC’s offering can help consumers do exactly that. However, it’s high balance transfer fees make completing a balance transfer to an HSBC credit card less desirable.