Credit Cards

HSBC Advance Credit Card – MoneySmart Review 2019

HSBC Advance Credit Card

The HSBC Advance Credit Card doles out up to 3.5% cashback on everything, which is a real godsend for people who simply can’t keep track of 7 different credit cards for different purposes. It’s one of the best cashback credit cards in Singapore for high spenders, especially those who spend over $2,000 a month.

Let’s see if it’s as good as it sounds:

 

HSBC Advance Credit Card terms & conditions

HSBC Advance Credit Card
Annual fee & waiver Free for HSBC Advance customers, otherwise $193 (waived for 1 year)
Supplementary annual fee
Interest free period 20 days
Annual interest rate 25.90%
Late payment fee $55
Minimum monthly repayment 3% or $50, whichever is higher
Foreign currency transaction fee 2.80%
Cash advance transaction fee 6% or $15, whichever is higher
Overlimit fee $40
Minimum income $30,000 (Singaporean) / $40,000 (non-Singaporean)
Card association Visa
Wireless payment Visa payWave, Apple Pay

 

How the HSBC Advance Credit Card works

The HSBC Advance Credit Card has a simple cashback system that is based on the amount you spend that month (not on the specific categories you spend on). It offers preferential rates for HSBC Advance members:

Monthly spending Cashback for HSBC Advance Cashback for non-members
$2,000 and above 3.5% (capped at $125) 2.5% (capped at $70)
Below $2,000 2.5% (capped at $125) 1.5% (capped at $70)

To take full advantage of the HSBC Advance Credit Card, you will need to become an HSBC Advance member. The 3.5% cashback is in our opinion generous enough to justify opening an HSBC Advance account if you’re going to make this one of your main cards.

So, how do you sign up? HSBC Advance is basically a current account tied to HSBC’s priority banking programme. To be part of it, you need to fulfill any one of the following criteria:

  • Credit your salary of at least $3,500 a month
  • Make a recurring deposit of at least $2,500 a month
  • Maintain total balance of at least $30,000 in HSBC (in deposits, investments or insurance) for at least 6 months

If opening an HSBC Advance account makes sense for you, this is a very good card to have on hand because there’s a perpetual fee waiver for members, and there’s no minimum spending requirement.

Unfortunately, for those who aren’t HSBC Advance account holders and don’t intend to sign up anytime soon, the card isn’t that great due to the high $2,000 minimum spending requirement in order to get 2.5% rebates. If you don’t meet it, you get a rather measly 1.5% cashback.

HSBC logo
Cash Back on All Spend
Up to 3.5%
Cash Back Cap per month
S$125
Min. Spend per month
S$0
MoneySmart Exclusive: Valid till 2020-03-31.
Get a Samsonite T5 Spinner (worth S$560) OR S$150 Cash Back with min. spend of $800 in first month of card approval + S$20 worth of Grab rides!.

 

Who should use the HSBC Advance Credit Card?

The HSBC Advance Credit Card is ideal for newlyweds and married couples who now have to face the harsh reality of running a household in Singapore.

Honestly, it’s no joke. Not only do you need to make sure everyone gets fed and clothed, you also have to pay for an insane number of things you probably never thought about back when you were still living with your parents.

From the mundane like phone and utility bills to big ticket items like household appliances, you soon realise you were saving on much more than rent before you moved out.

That’s why married couples who own homes need a good credit card that rewards them for all that spending. As a single still living at home, you might have been able to get away with a card for dining, another for online shopping and so on.

But if you’re running a household, you’ll need a card that rewards you for all those miscellaneous expenses, from washing machine purchases to that sleek new sound system.

Your expenditure is also likely to be higher than a single person’s as you can charge the entire household’s expenses to the card. That means you’re more likely to be able to meet a $2,000 minimum spending requirement each month.

The fact that you don’t need to track your expenses down to the very cent is a bonus, because you’ll probably be busy enough as it is trying to get your life together.

 

Alternatives to the HSBC Advance Credit Card

Here are a couple of cards which offer cashback on all spending. Let’s see how they compare to the HSBC Advance.

American Express logo
Cash Back on All Spend
1.5%
Cash Back Cap
Unlimited
Min. Spend per month
S$0

American Express True Cashback Card – 3% cashback in the first 6 months on up to $5,000, and thereafter 1.5% cashback on everything with no limits and no minimum spending. Basically, if you are an HSBC Advance account holder stick with the HSCB Advance Credit Card. If you’re not, go for the AMEX True Cashback Card instead.

Maybank logo
Cash Rebates on All Local Spend
Up to 3.33%
Cash Rebate on Overseas Spend
0.3%
Cash Rebate Cap per quarter
S$100

Maybank Platinum Visa Card – Up to 3.33% cashback on all local spending provided you meet the minimum spending requirement of $300 for every month in a quarter. The HSBC Advance Credit Card is better only if you are an HSBC Advance account holder AND can meet the card’s much higher minimum spending of $2,000 a month.

UOB logo
Cash Back on Grab
Up to 10%
Cash Back Cap per quarter
S$300
Min. Spend per month
S$2000

UOB One Card – The minimum spending requirements are complicated, but the card is generous if you can figure them out and fulfil them. Spend at least $2,000 and make at least 5 transactions a month in all 3 months in a quarter, and you can get a flat quarterly rebate of $300, which works out to be 5%. Yeah, it’s complicated.

All in all, if you are able to consistently spend more than $2,000 a month, you might want to go for this card instead of the HSBC Advance, whether or not you are an HSBC Advance Credit Card member.

That said, the HSBC Advance credit card is one of the best low-effort cashback cards for big spenders and people who are too busy running a household to track their every expense.

If you’re keen, HSBC is offering $150 worth of Grab rides plus 5% cash back on contactless payments. Existing HSBC cardmembers get the 5% cash back on contactless payments as well as on top of $50 cash back if they meet the minimum spending requirement.

HSBC logo
Cash Back on All Spend
Up to 3.5%
Cash Back Cap per month
S$125
Min. Spend per month
S$0
MoneySmart Exclusive: Valid till 2020-03-31.
Get a Samsonite T5 Spinner (worth S$560) OR S$150 Cash Back with min. spend of $800 in first month of card approval + S$20 worth of Grab rides!.

What is your go-to credit card for your household expenses? Share your recommendations in the comments!

 

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