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Interest free finance FAQs

Frequently asked questions

Interest free finance

12 months interest free1? How does that work?

Interest free1 means you will not have to pay any interest on the purchase you made during the promotional period (which can be from 3 to 60 months, depending on the retailer). You still have to pay a minimum monthly repayment like you would with any standard credit card purchase.

How do I take advantage of interest free1?

Visit a participating retailer and let a staff member know you wish to make a purchase on interest free1. The application is easy and should only take 5-10 minutes. If you are approved, you can take your new purchase home today, and your new HSBC Low Rate Credit Card will be mailed to you.

For existing HSBC credit card holders, making interest free purchases within your credit limit is simple. Mention you wish to make a purchase on interest free at a participating retailer and your purchase will be settled in minutes.

Do I need to have a credit card to make an interest free1 purchase?

Yes, the interest free1 promotion is only available with an HSBC credit card.

What does interest free1 payment deferred mean?

As well as having the advantage of not being charged any interest for the specified promotional period, you don't need to make any repayments for the deferred period for the specified purchase. Some retailers call this "Buy Now Pay Later" or "Nothing to pay until..." or "No interest and no repayments until...". Payments will be required once the promotional term has expired.

What is the minimum monthly repayment I will have to make?

You must repay a minimum amount every month by the date shown on your statement (please note this is the date HSBC should receive the payment, not the date on which you make the payment).

For our HSBC Low Rate Credit Card, the minimum repayment is the higher of $30 or 3% of the outstanding balance.

For our Personal Instalment Line, the minimum repayment is the amount of the purchase divided by the number of months in the promotion, plus fees and interest charges.

You do not have to make a repayment if your balance is zero or in credit, or if you are within a payment deferred promotional period. You may pay all of or more than the outstanding balance if you wish. The minimum monthly repayment as noted on your statement may not pay off your outstanding balance within the promotional period.

Can I use my card for everyday purchases as well?

Yes, your HSBC Low Rate Credit Card can be used for regular purchases whenever you shop at any of the 24 million retailers worldwide that accept Visa.

What about extra purchases?

Once you are approved and have your HSBC Low Rate Credit Card, you have the ability to make additional interest free1 purchases, as long as you stay within your approved credit limit. When you've found what you want, in one of the participating retailers, simply ask the staff member to make the payment for the new item as an 'add on' to benefit from interest free1.

Do I have to pay off my interest free1 purchase before I can use my card again?

No. Once you receive your HSBC Low Rate Credit Card you will have a credit limit, which will often be higher than the amount of your interest free1 purchase. As long as you have sufficient available credit left on your card, you can use it for additional every day or interest free purchases up to the full amount of your credit limit.

When will I receive my first statement?

You will receive your first statement within one month of taking delivery of your promotional purchase.

Can I pay off my balance before the end of the promotional period?

Yes, you can pay off the full balance at any time.

Is there an exit fee for early payments?

There is no exit fee for early repayments.

What happens if I don't pay the total amount owing by the end of the promotional period?

At the end of the promotional period, any outstanding balances will incur interest at our cash advance interest rate. Interest is only charged to the remaining promotional balance from the day after the promotion expires and is not backdated to the start of the promotion.

Credit provided by HSBC Bank Australia Limited ABN 48 006 434 162 Australian Credit Licence 232595. Fees, charges and lending criteria apply. Terms and conditions apply and are available on request.

  1. Available at participating retailers only. Minimum purchase and conditions apply. Interest free finance is applied only to promotional transactions for the specified period. Balances outstanding at the end of the promotional period will form part of the normal account balances and will accrue interest at the cash advance rate (currently 25.99% p.a. as at 29-Jan-18). Monthly repayments are required and calculated at 3% of the outstanding balance or $30, whichever is higher.