Interest Free Credit on a New Plasma TV, Kitchen, Lounge for Your Home With HSBC
Take advantage of the interest free credit available with the HSBC Credit Card
There is nothing frustrating than wanting, or needing to make a large one off purchase, but not having the cash to do it.
What do you do if your television breaks down? Maybe your kitchen needs urgent updating? How about if you have the chance to replace your old three piece suite that is now falling apart.
Without being able to lay your hands on the cash you will not be able to buy- or will you?
In a situation where you do not have the money to make an outright purchase you can apply for credit. The best type of credit you can get is interest free credit.
What is interest free credit?
When you borrow money from lender they will charge you interest on the cash they have lent you. Normally the interest rate will be based on a percentage of the overall borrowed amount.
For example if you borrow $1,000, and you yearly interest rate is 10% then in your first year you would pay $100 in interest. As your overall balance reduces so will the amount of interest you pay.
Because of the way credit works, when you make a purchase something on credit you will normally end up paying more than the original purchase price on your item, once you take into account the interest payments.
However there is one form of credit that can in fact let you pay purchase price of your item, and no more, as long as you stick to the rules. This form of credit is known as interest free credit.
How does interest free credit work?
When you borrow money on an interest free basis you are on a special deal where you do not have to pay any interest for a set promotional period of time. A common deal available is “6 months interest free”, or “12 months interest free”.
What this means is you will not be charged any interest on your borrowing for 6 or 12 months after you make the purchase. This allows you to pay off your borrowing steadily, and as long as you pay the full balance before the end of your interest free period, you will pay nothing extra on top.
This is effectively the cheapest way to borrow money, but should only be pursued if you can pay the balance off by the end of the promotional period. It is not uncommon for some companies to charge backdated interest if the balance remains unpaid at the end of the interest free period.
Buy now pay later
Another variant of this interest free credit deal is the buy now pay later deal where you do not have to make any payments towards you purchase whatsoever for a set promotional period.
For example on a 6 months buy now pay later deal that begins in January, you will not have to pay a cent towards your purchase until June.
Again once the promotional period is over you will start accruing interest, so it is strongly advised that before you take on any buy now pay later deals that you ensure you will have the money to pay off the balance at the end of the special period.
HSBC interest free credit options
The “world’s local bank” offers customers a number of great interest free credit options, making it possible to make those one off larger purchases.
The first of their interest free offers come in the form of credit in conjunction with a HSBC credit card.
With this finance option you are able to apply for credit in any of the participating stores working with HSBC, and as part of the finance package you will automatically qualify for an HSBC credit card.
Depending on the retailer and the offer you take up, there are interest free packages that last up to 48 months. That’s a whole 4 years without having to pay any interest on your purchase.
You will be sent a statement in the post each month, and will have a number of payment options. You will have the option of overpaying, or sticking to the monthly minimum payment which is normally 3% of the balance, or $20 depending on which figure is larger.
The best way to deal with a package of this nature is to overpay the monthly minimum as often as you can. Your target is to pay of the full balance owed by the time the interest free period expires, thus avoiding all interest payments.
Some retailers may also offer a payment deferred option where you do not have to any payments towards the balance for a set period of time. This works in very much the same way as a buy now pay later deal.
55 Days interest free
As part of the credit card offer you will also have the benefit of up to 55 days interest free, which also gives you longer to pay off any day to day purchases you may make on your credit card.
Interest free days work best for customers who are able to pay off their balance in full at the end of the month.
The credit card you get as part of the finance also gives you 5.99% on balance transfers for up to 6 months, so if you are trying to cut back on interest payments on an old credit card debt this deal will also benefit you.
The second form of credit offered by HSBC is the Personal Installment Line
HSBC Personal Installment Line
This service is perfect for one off purchases. Regardless of whether you are making home improvements, taking a holiday, or merely want to treat yourself. This service let’s you borrow between $1,000 and $20,000.
Interest is just 26% APR, and payments can be made over the period of up to 4 years, so you can spread payments over a longer period of time if you need to.
One very attractive feature of this interest free credit option is that payments are fixed, so your interest rates are not going to be affected in any way by fluctuating markets.
No penalties for paying early
Very often with this kind of loan, the lenders will penalize you with an early repayment fee if you decide to pay the full debt early. This is of course to make sure that they maintain their full share of the expected interest charges.
HSBC make it possible for you to clear your debt before the agreed period if you come into money, or are able to find some spare money. Of course the earlier you can repay the debt, the less interest you will pay overall.
You have to pay $30 to set your loan up, and after that there is a small fee of just $3.95 which goes towards account maintenance.
There are a huge amount of retails partners where you can apply for credit from HSBC, and all fall into the most popular consumer categories, for example, automotive, home wares, electrical, and sports.
Many of the big names are on board which means whether it is a new wardrobe, new television, or new kitchen that you need you will have access to the great HSBC credit options.
How to apply
If you do not already have an HSBC account then you can apply at any of the HSBC retail partners. The advantage of this is that you can normally get an instant decision as to whether you have been successful, and if you are, then you will be able to take your new purchase home with you on the day.
As part of the application process the retailer will run a credit score on you. For this reason it is very advisable to get a copy of your credit history before you apply. From time to time the odd error may occur on your credit file which may have a negative effect on any credit applications.
By accessing your file before you apply for credit you can correct any errors, making sure your road is clear for a positive credit check.
There are not many exceptions from either forms of interest free credit from HSBC. As long as you are over 18 years old, a permanent resident of Australia, and earn at least $20,000 a year you should be eligible to apply.
What you will need to take in store when you apply for credit is proof of ID, as well as proof of income, and details of your workplace.
There are many different forms of credit available, but HSBC gives you the chance to not only have interest free credit, but also interest free credit where payments are deferred giving you even longer to pay.
So the next time you see that brand new 42 inch television you have been desperate to buy but didn’t think you could, why not get onto HSBC, see what offer would suit you best, and treat yourself.
As long as you stick to the golden rule of paying off any balance before the end of your interest free period, this will be one of the cheapest credit options you will be able to find.
Read the official terms and conditions
| Minimum Income | $20,000 | Minimum Age | 18 years of age |
| Residency | Permanent Australian Resident | Credit Rating Requirement | Good |
| Min Credit Limit | $1,000 | Max Credit Limit |
| Annual Fee | Balance Transfer Fee | 2% | |
| Minimum Repayment | 3% | Interest Charged From | Purchase Date |
| Late Payment Fee | $30 | Over Limit Fee | $30 |
| Overseas Emergency Replacement | $200 | Overseas ATM Balance check | $0 |
| Overseas ATM Withdrawal | $0 | Foreign Currency Conversion Fee | 3% |
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