BEST CREDIT CARDSBEST CREDIT CARDSHSBC CASH REWARDS MASTERCARD REVIEW: NO LONGER AVAILABLE

HSBC Cash Rewards Mastercard Review: No Longer Available

(NO LONGER AVAILABLE) A stellar rewards rate in the first year made this card attractive.
Melissa Lambarena Author AvatarChanelle Bessette Author Avatar
Mar 4, 2024 12:54 p.m. PST
Edited by
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SOME CARD INFO MAY BE OUTDATED
This page includes information about the Alliant Cashback Visa® Signature Credit Card and the HSBC Cash Rewards Mastercard® credit card, currently unavailable on NerdWallet. The information about the Alliant Cashback Visa® Signature Credit Card and the HSBC Cash Rewards Mastercard® credit card has been collected by NerdWallet and has not been provided or reviewed by the card issuer.

4.5

NerdWallet rating
The bottom line:

It's a solid choice as an everyday, top-of-wallet card for those who aren't interested in keeping track of bonus categories. But better options may exist.

Pros
  • High rewards rate
  • No annual fee
  • 0% Introductory APR on credit card purchases and balance transfers for the first 12 months from account opening, then a variable APR of 12.99%-22.99% will apply
  • No foreign transaction fee
Cons
  • Potentially complicated redemption
HSBC Cash Rewards Mastercard® credit card Image
HSBC Cash Rewards Mastercard® credit card
Annual Fee

$0

Regular APR

12.99%-22.99%, Variable

Intro APR

0% intro APR on purchases and balance transfers for the first 12 months.

Rec. credit score

HSBC Cash Rewards Mastercard® credit card
HSBC Cash Rewards Mastercard® credit card Image

Annual Fee

$0

Regular APR

12.99%-22.99%, Variable

  • Annual fee

    $0

  • Rewards rate

    1.5%

  • Bonus offer

    None

  • Intro APR

    0% intro APR on purchases and balance transfers for the first 12 months.

  • Ongoing APR

    APR: 12.99% - 22.99%, Variable

    Cash Advance APR: 24.99%, Variable

  • Balance transfer fee

    Either $10 or 4%, whichever is greater, will apply on each balance transfer

  • Foreign transaction fee

    0%

More details from HSBC
  • Earn unlimited 1.5% cash back on all purchases.
  • Earn an Introductory 3% Cash Back on all purchases in the first 12 months from Account opening, up to the first $10,000 in purchases
  • No Annual Fee.
  • 0% Intro APR for 12 months on purchases and balance transfers, then a 12.99% - 22.99% variable APR.
  • No Foreign Transaction Fees.
  • $0 liability for unauthorized purchases.
  • Terms Apply.

Compare to Other Cards

ANNUAL FEE
$0
REGULAR APR
19.24%-29.24% Variable APR
Rates & Fees
INTRO APR
0% intro APR on Balance Transfers for 18 months
RECOMMENDED CREDIT SCORE
ANNUAL FEE
$0
REGULAR APR
17.24%-28.24% Variable APR
Rates & Fees
INTRO APR
0% intro APR for 15 months on purchases and balance transfers
RECOMMENDED CREDIT SCORE
ANNUAL FEE
$0
REGULAR APR
20.49%-29.24% Variable APR
INTRO APR
0% intro APR on purchases and Balance Transfers for 15 months
RECOMMENDED CREDIT SCORE
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Detailed review: HSBC Cash Rewards Mastercard® credit card

» This card is no longer available

The HSBC Cash Rewards Mastercard® credit card had stopped accepting applications as of December 2021. See our best cash back credit cards for other options. Below is our review from when the HSBC Cash Rewards Mastercard® credit card was still available.

• • •

The defining feature of the HSBC Cash Rewards Mastercard® credit card is a first-year rewards rate that you won't find on most other cash-back cards in its class.

Instead of an upfront sign-up bonus, it earns 3% back on all purchases within the first 12 months of opening your account, up to the first $10,000 in spending. After that, you earn 1.5% back on everything.

That 3% rate is eye-catching, especially for a $0-annual-fee card. But it's really just a repackaging of a traditional bonus offer.

If you're planning to spend $10,000 in your first year, you'd get just as much value back from a normal 1.5% flat-rate card with an upfront $150 sign-up bonus. And if you spend less than that in Year One — but still enough to snag that upfront bonus — the HSBC Cash Rewards Mastercard® credit card is the worse deal of the two.

The card does offer multiple redemption options beyond just cash, which may appeal to those seeking flexibility. But those options typically aren't a good value and require you to jump through some hoops.

HSBC Cash Rewards Mastercard® credit card: Basics

Card type: Cash back.

Annual fee: $0.

Sign-up bonus: None.

Rewards: Earn an introductory 3% cash back on all purchases in the first 12 months from account opening, up to the first $10,000 in purchases. After that, the card earns 1.5% back on everything.

You also have the option of redeeming your rewards for things like travel, merchandise or gift cards. But when you do that, you typically get less than full value — as low as 67 cents on the dollar for gift cards and 80 cents for travel and merchandise — so those options are not a wise use of rewards.

APR: 0% intro APR on purchases and balance transfers for the first 12 months, then a variable APR of 12.99%-22.99% will apply.

Balance transfer fee: 4% of the amount transferred, or $10, whichever is greater.

Foreign transaction fee: None.

Other benefits: Travel accident insurance, rental car insurance, plus discounts and other Mastercard benefits.

Benefits and perks

Solid ongoing rewards

Max out this card's first-year offer and you'll snag $300 in rewards in those initial 12 months. Thereafter, you'll get 1.5% back on everything. That's solid earning potential. But it should be noted that this is not the best deal for lower spenders who may hit, say, a $1,000 spending requirement for a traditional bonus, but not a $10,000 first-year cap. For them, a normal 1.5% flat-rate card with a $150 bonus upfront would offer greater value.

Multiple redemption options

Taking your rewards as a credit on your statement is the easiest and least restrictive option for most cardholders. But if you have an eligible HSBC bank account, you can choose to redeem your cash back as a direct deposit into that account. You can also redeem rewards for eligible charitable giving. In all three cases, you'll get full value for your rewards. There are other ways to use your rewards, including for travel (airfare, hotels, rental car, etc.), merchandise, gift cards and credit for the application fee for the TSA Precheck or Global Entry program. As noted above, redemption values for these alternatives will be poor, but you do have options.

No foreign transaction fees

Unlike many cash-back cards, the HSBC Cash Rewards Mastercard® credit card travels well abroad. You'll pay no foreign transaction fees on purchases internationally.

Valuable side perks

As a cardholder, you’ll get a complimentary ShopRunner membership that offers unlimited free two-day shipping and free return shipping at over 140 online stores. You’ll also get $5 off on Postmates orders of $25 or more (not including taxes, delivery fees and tips). Other side perks include rental car coverage, cell phone insurance and more.

Drawbacks and considerations

No upfront bonus

There's no shortage of 1.5% cash-back cards that offer traditional upfront welcome offers. One example is the $0-annual-fee Capital One Quicksilver Cash Rewards Credit Card, which offers the following to new cardholders: Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening.

Other cards offer a higher ongoing rate

The Citi Double Cash® Card earns 2% cash back on every purchase: 1% when you buy, plus 1% as you pay it off. The annual fee is $0. If you're willing to pay an annual fee — and willing and able to join the Alliant Credit Union — you could also consider the Alliant Cashback Visa® Signature Credit Card. The annual fee is $0. But you'll earn an unlimited 3% cash back on all purchases in the first year and a whopping 2.5% back on everything else.

Short 0% period compared with competitors

The HSBC Cash Rewards Mastercard® credit card offers a 0% intro APR period on purchases and balance transfers, but you can find cards with longer interest-free windows and lower balance transfer fees. The U.S. Bank Visa® Platinum Card doesn't earn rewards, but it does offer an intro 0% intro APR for 18 billing cycles on purchases and balance transfers, and then the ongoing APR of 18.74%-29.74% Variable APR. If your goal is to pay down debt, you may also consider cards that don't charge balance transfer fees.

Redemption restrictions

With the HSBC Cash Rewards Mastercard® credit card you may face certain redemption restrictions: You may be limited to using your cash rewards only for eligible airline tickets, or you may need to contact HSBC representatives for certain redemptions. There's also a $15 ticket service fee when you book airfare through the Online Travel Rewards option. For fewer redemption hurdles, consider the $0-annual-fee Discover it® Miles, which earns 1.5 miles per $1 spent on all purchases. You can redeem rewards for a statement credit to cover travel purchases or you can redeem them for other options, like cash at the same value. It offers a potentially generous sign-up bonus, which the issuer phrases this way: "UNLIMITED BONUS: Unlimited Mile-for-Mile match for all new cardmembers - only from Discover. Discover gives you an unlimited match of all the Miles you’ve earned at the end of your first year. For example, if you earn 35,000 Miles, you get 70,000 Miles. There’s no signing up, no minimum spending or maximum rewards. Just a Miles-for-Miles match."

You can also visit NerdWallet's roundup of the best credit cards to get to see how these options compare.

Alternate Pick: Upfront welcome bonus
Longer intro APR period

This card earns 1.5% cash back on all purchases, but it also offers a rich welcome bonus: Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening. Plus, there's a lengthy intro APR offer: 0% intro APR on purchases and balance transfers for 15 months; 19.99% - 29.99% variable APR after that; balance transfer fee applies.

How to decide if it's right for you

The HSBC Cash Rewards Mastercard® credit card is a solid option for those who want a flat-rate cash-back card with a few unique features.

Otherwise, there are some cash-back credit cards that can provide more redemption flexibility and better rewards.

Methodology

NerdWallet reviews credit cards with an eye toward both the quantitative and qualitative features of a card. Quantitative features are those that boil down to dollars and cents, such as fees, interest rates, rewards (including earning rates and redemption values) and the cash value of benefits and perks. Qualitative factors are those that affect how easy or difficult it is for a typical cardholder to get good value from the card. They include such things as the ease of application, simplicity of the rewards structure, the likelihood of using certain features, and whether a card is well-suited to everyday use or is best reserved for specific purchases. Our star ratings serve as a general gauge of how each card compares with others in its class, but star ratings are intended to be just one consideration when a consumer is choosing a credit card. Learn how NerdWallet rates credit cards.

About the authors

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