HSBC Student Credit Card

HSBC Student Credit Card

A great student card to go with HSBC's student current account.

Good for

  • Students needing their first credit card
  • Establishing your credit history
  • Getting a relatively low rate for a starter card
  • Earning some cash back on purchases
  • Being accepted for a credit card with no income
  • Having branches nearby

Bad for

  • Opening a new credit card without an associated bank account

Editor's Rating

3.5/5.0

The guidance on this site is based on our own analysis and is meant to help you identify options and narrow down your choices. We do not advise or tell you which product to buy; undertake your own due diligence before entering into any agreement. Read our full disclosure here.

Is the HSBC Student Credit Card any good? It may be, especially if you already have an HSBC student current account or are a student and are going to open one. A student card can be a great way to start building your credit history—just make sure you pay on time and stay under the credit limit. Let's see how the HSBC student card stacks up.

HSBC Student Credit Card Review

HSBC's student credit card can be a great first card as its open to those without a credit history and has a purchase interest rate that's relatively low for a starter card at 18.9% APR (variable).

Student credit cards from high street banks tend to charge much lower interest rates than you'll find on credit builder cards, so they can be quite attractive. While it's always best to pay back the entire balance each month, if you can't then the interest rate will determine how much you owe in interest charges (along with the outstanding amount).

Another perk is that cardholders can earn cashback on some of their shopping—the amount of cashback is variable and may be a percentage of your spending or a fixed pound reward earned by spending a minimum amount. Cashback offers apply to various retailers, such as Esso, Lidl, Boots, H&M, Costa, EuropCar and Uber, but these are subject to change.

Cashback rewards

If you earn a cashback award, Visa will credit the amount to your account. Unlike many other cashback cards in the market (e.g., ) this cashback is paid quickly, typically arriving in 5 business days from the date you earned it. How does it work?

For example, if a hypothetical cashback offer is for 10% off purchases of £50 or more and you make a £100 purchase, Visa will put £10 cashback in your account. Cashback is an unusual perk for a student card—and can be beneficial as long as it doesn't encourage you to make purchases you wouldn't otherwise make.

Possible HSBC Student Cashback Retailers

  • H&M
  • Costa
  • Uber
  • Esso
  • Lidl
  • Boots
  • EuropCar

HSBC Student Card Benefits & Features

HSBC Student Credit Card Features
Credit Limitup to £500
Transaction Fees
  • 2.99% fee on all foreign currency transactions
  • 2.99% fee on cash withdrawals (min £3)
Eligibility checkerTo see your odds of being accepted
Other FeaturesContactless, Apple Pay and Android Pay
Annual Fee£0
APR (variable)
  • 18.9% on purchases
  • 23.6% on cash withdrawals

Who Can Apply?

HSBC will accept most current or prospective students for their student card, so long as you have or apply for an HSBC student current account. You can't have the credit card without the bank account, so the HSBC card is only a good option if you'll open an HSBC student account as well. To open a student bank account, you must have a confirmed place to study and be on:

  • a full time qualifying course
  • or a level 4+ apprenticeship in the UK, Channel Islands or Isle of Man
  • or a part-time course with a Disabled Students' Allowance

Any postgraduate applicants must have finished a UK undergraduate degree in the past three years.

As proof, postgrads must provide a graduation certificate, diploma or letter from the university or college. Others must show proof of their unconditional acceptance (e.g. UCAS letter or letter from the university or college), or for first year students a 16-digit UCAS status code.

In addition, applicants may not hold a student account anywhere else.

To get the credit card, you must:

  • be at least 18 years old
  • have an HSBC Student bank account
  • be a UK resident (for at least 3 years, and not from the Channel Islands or the Isle of Man)

As a card for students who are often young and too busy studying to work, so there is no income requirement nor a minimum credit history. For the most part, applicants need to have been a UK resident for 3 years, be 18 years of age and be (or soon be) a student or Level 4+ apprentice—so this is not a good option for international students who've just arrived in the UK. They may want to consider the NatWest Student Credit Card instead as it will consider international students.

Using the HSBC Student Credit Card Abroad

Many students travel during school holidays, so it's important to understand the fees you'll pay by using this credit card abroad and when not to use your card. The following table illustrates the fees for using the HSBC Student Credit Card overseas.

Type of TransactionExampleFeeMinimum Fee
Credit Card PurchasesPaying for a meal in a restaurant2.99%n/a
Cash WithdrawalGetting foreign cash from an ATM2.99%£3

It's important to note that withdrawing local currency from a foreign ATM is very expensive, as you'll incur DOUBLE fees—these transactions are subject to both a foreign transaction fee (2.99%) and a cash withdrawal fee (2.99%, £3 min). In addition, there's no grace period on cash withdrawals so interest charges start accruing immediately.

To understand the implications of these charges, the following chart illustrates the fees associated with £300 worth of foreign credit card purchases and three cash withdrawals worth £100 each. Note, it is never optimal to withdraw less than £100 worth of currency, due to the £3 minimum cash fee—that is, you're charged £3 on any cash withdrawal under £100 in value.

chart illustrating Example of HSBC Foreign Usage Fees
Example of HSBC Foreign Usage Fees

FAQs

It's usually cheaper to pay in the local currency when you're abroad, even if there are foreign transaction fees, because if you choose to pay in pounds then the retailer picks the currency exchange rate—which can be pretty poor. Using the HBCS student credit card abroad, you can either pay in pounds and be subject to a suboptimal retailer exchange rate you can pay in the local currency and incur a 2.99% fee. FYI there are some fees for foreign transactions]credit cards that don't charge foreign transaction fees.
Yes, you can use the HSBC student credit card for online purchases.
HSBC student accounts come with a debit card. They don't come with a credit card, but those with a student current account can apply for one.
Yes, the HSBC student credit card charges fees when you use it abroad.
Erin Yurday

Erin Yurday is the CEO, Co-founder and Editor of NimbleFins. Prior to NimbleFins, she worked as an investment professional and as the finance expert in Stanford University's Graduate School of Business case writing team. Read more on LinkedIn.

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The guidance on this site is based on our own analysis and is meant to help you identify options and narrow down your choices. We do not advise or tell you which product to buy; undertake your own due diligence before entering into any agreement. Read our full disclosure here.