Credit Cards

HSBC Advance Credit Card – MoneySmart Review 2018

HSBC Advance Credit Card

Joanne Poh

0 Comments

2
Shares

Running a household in Singapore is 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 married couples need a card that rewards them for everything else—from washing machine purchases to that sleek new sound system.

The HSBC Advance Credit Card is a strong contender thanks to the fact that it doles out up to 3.5% cashback on everything. Let’s see if it’s as good as it sounds:

HSBC Advance Credit Card

HSBC Advance Credit Card


Card Benefits

  • Option 1: American Tourister Caravan 70cm TSA luggage (worth S$260)
  • Option 2: S$100 Cash Back
  • 1.5% Cash Back on all purchases with no minimum spend / 2.5% Cash Back on all purchases with $2,000 minimum spend per month. Capped at $70 per month
  • For HSBC Advance banking customers: 2.5% Cash Back on all purchases with no minimum spend / 3.5% Cash Back on all spend with S$2,000 minimum spend per month. Capped at S$125 per month
  • 1st year principal card annual fee waiver for non-HSBC Advance banking customers / Perpetual principal card annual fee waiver for HSBC Advance banking customers
  • Perpetual supplementary card annual fee waiver

 

Pros and Cons of the HSBC Advance Credit Card

Pros

Cons

3.5% cashback for HSBC Advance account holders who spend over $2,000 a month.

Cap of $125 cashback per month

2.5% cashback for HSBC Advance account holders who spend $2,000 and below a month.

2.5% cashback for non-HSBC Advance account holders who spend above $2,000 a month

Cap of $70 cashback per month

1.5% cashback for non-HSCB advance account holders who spend $2,000 and below a month

Cashback is available on all purchases

No minimum spending requirement

Annual fee is waived perpetually for HSBC Advance account holders

1 year annual fee waiver for non-HSBC Advance account holders

For non-HSBC Advance account holders, you must spend $12,500 in a year to qualify for fee waiver after the first year. Annual fee is $120.

Entry level minimum annual income requirement of $30,000.

Sign up bonus of $140 cashback or an American Tourister luggage for new cardmembers signing up online. Existing cardholders only entitled to $70 cashback. Extra $20 cashback if a supplementary card application is submitted at the same time.

Sign up bonus only valid till 31 Oct 2017.

 

Is this a good card for married couples?

As you can see, to be able to take full advantage of the HSBC Advance Credit Card’s 3.5% cashback offer, you will need to be an HSBC Advance member.

The 3.5% cashback with no minimum spending 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.

The HSBC Advance is basically a current account. The catch is that it costs $10 a month unless you can fulfil their criteria of, for instance, keeping a balance of at least $30,000, having a home loan starting from at least $200,000, crediting a salary of at least $3,500 each month or making a recurring deposit of at least $2,500 a month.

If opening an HSBC Advance account makes sense for you, this is a very good card to have on hand even if you don’t use it all the time. There’s no annual fee or minimum spending requirement for HSBC Advance members, after all.

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.

That being said, as a married couple, your expenditure is likely to be higher than a single person’s as you can charge the entire household’s expenses to the card. If that means you get to comfortably meet the $2,000 minimum spending requirement every month, then it’s worth considering.

On the other hand, if you don’t meet the minimum spending requirements, you get only 1.5% cashback, which other cards such as the American Express True Cashback Card can easily match

 

How does this card compare to its closest competitors?

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

  • 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 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 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 $500 or $1,000 a month + make at least 5 transactions in all three months in a quarter to get rebates of up to 3.33%. Yeah, it’s complicated. If you spend at least $2,000 every month in a quarter, the rebate amount increases to 5%. All in all, if you are able to consistently spend more than $2,000 a month, you should go for this card instead of the HSBC Advance, whether or not you are an HSBC Advance Credit Card member.

As you can see, the UOB One is a better option for high spenders than the HSBC Advance Credit Card. If you have difficulty meeting the HSBC Advance’s high spending requirements and/or don’t want to set up an HSBC Advance account, go for Maybank Platinum Visa Card or American Express True Cashback Card instead.

 

HSBC Advance Credit Card income requirements

Singaporeans & PRs: $30,000 p.a. OR fixed deposit of $10,000
Foreigners: $40,000 p.a. OR fixed deposit of $10,000
 

HSBC Advance Credit Card annual fee

$120 (waived perpetually for HSBC Advance customers, or first year for all others)

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

Keep updated with all the news!

Tags:

Joanne Poh

In my previous life, I was a property lawyer who spent most of my time struggling to get out of bed or stuck in peak hour traffic. These days, as a freelance commercial writer, I work in bed, on the beach, in parks and at cafes, all while being really frugal. I like helping other people save money so they can stop living lives they don't like.