Note: Since this review was written, HSBC have renamed this card from the 'Low Rate Visa'. Sanity prevails. We'll update the review soon.Here's a tip: If you're going to release a credit card called the 'Visa Low Rate', there are two things you should ensure:
- That the card is a Visa
- That the card has a low rate
While it certainly is a Visa, the ironically-named HSBC Visa Low Rate actually has a purchase rate of 17.99%, which could most generously be described as mid-range. Most genuinely low rate cards are in the 10% - 12% range. The cash rate is no better (21.99%).
This is not the first time a marketing department have demonstrated a baffling unfamiliarity with the credit card market. Citibank have a
platinum card that's purple and has a lower purchase rate than their standard card.
HSBC's own summary of this card states "Rather than pay for the features you don't need, HSBC's Low Interest Rate Credit Card gives you the freedom to buy what you want, when you want and with one of the fairest low interest rates around."
Consulting our Bank-to-English dictionary, we find that 'fairest' roughly translates to 'highest'. Our website alone lists ten credit cards with lower interest rates than this card.
Everything else about the Visa Low Rate is on par with other low-cost, no-frill credit cards. The annual fee is $0 and there is a balance transfer rate of 5.99% for six months. You also get 55 days interest free on purchases.
The 17.99% purchase rate might have been OK if they included some other features to justify the cost. But there is no rewards program, no travel insurance and no other additional features of any kind. As it is, the card simply isn't competitive. Other low end cards have better interest rates and other mid-range cards have better features.
The fee structure offers no redemption. Going over your limit and being late with a payment will cost you $30, card replacements are $20 and urgent or international card replacements are $50.
The verdict: Given the range of included features, the purchase rate should be a lot lower.
