HSBC Direct Rewards Card to Replace Citi Dividend Credit Card?
Guest: quiznut1
Credit Expert (100+ Posts)
Post subject: HSBC Direct Rewards Card to Replace Citi Dividend Credit Card?
Posted: Sat Aug 19, 2006 9:13 am
Hi everyone,
With all the talk of Citi making its "famed" 5% cash back program worse off, I thought I would throw another player out there. This is courtesy of a Fat Wallet post, so here are the details:
HSBC Direct Rewards Card
5% cash back on gas stations, grocery stores, and drugstore purchases
Up to 1% cash back on everything else
No annual fee
0% on balance transfers for 12 months, with a $75 maximum fee at 3% of the amount.
$500 annual cap on rebates.
There are a few other hidden details:
Notice I said, "up to 1% on all other purchases", that's because for the first $3,000 you spend, you only earn 0.5% on everything else. After that, it's the full 1%. However, gas, grocery, and drugstore purchases are a flat 5%.
Also, HSBC sends you your check (up to $500) at the end of your anniversary year, as opposed to when you accrued $50 with the Citi Dividend. You must accrue at least $10 for HSBC to send you your check at the end of your anniversary year (of course, no problem for us).
Any thoughts? Also, to current cardholders of the Citi Dividend, without knowing the full details of the new cash back structures, will you now apply for this card?
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Guest: Board Monitor
Board Monitor/ Administrator
Posted: Sat Aug 19, 2006 10:13 am
Interesting. Thanks for the post. I'm sticking with Blue Cash.
_________________
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Curtis Arnold
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http://www.CardRatings.com
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Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Sat Aug 19, 2006 10:45 am
It's interesting. The fine print says the 0% balance transfer rate (3% fee, cap $75) is valid only for balance transfers completed at the time of application. I've always had problems with that sort of wording, since there's no way to know when you're applying whether you're going to be given a credit limit of $500 or $5000 or $50,000. How do you pick a balance transfer amount when you don't know what your limit is?
Still, with a cap of $75 on any balance transfer (or less:3%) and 0% for 12 months, it has to be worth doing. At the very worst, you'll pay a 3% fee to borrow money for 12 months, tops. Put it in a 5% savings account and you'll make a profit, guaranteed. (I deduct the fee as an investment expense, and I have to pay taxes of course on the interest earned. Still, I come out ahead. Others may not.)
I don't pay much attention to rewards structures because the benefits are tiny--FOR ME--compared to the 0% balance transfer benefits. I don't spend that much money and I already have two 5% rewards cards for gas, drugs, and groceries. Now, a friend of mine is an oral surgeon who purchases huge quantities of drugs for his medical practice. He'd save thousands of dollars on a card like this one each year.
I wouldn't turn down ANY 0% card with these terms. I wonder why others would! But since HSBC--again, FOR ME--has given me low limits in the past, I wouldn't expect too much of a limit. My current HSBC card is 0% for a year. I got it in November. $5,000 CL.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: hdporter
Credit Expert (100+ Posts)
Posted: Sat Aug 19, 2006 11:30 am
Yeah, I detest the "no fee BT, only at time of application" thing. While some don't mind, I don't want to end up with a maxed out card. You think they'd allow 30 days from the time of account approval, at minimum.
- Harry
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Credit Expert (100+ Posts)
Post subject: HSBC Direct Rewards Card to Replace Citi Dividend Credit Card?
Posted: Sat Aug 19, 2006 9:13 am
Hi everyone,
With all the talk of Citi making its "famed" 5% cash back program worse off, I thought I would throw another player out there. This is courtesy of a Fat Wallet post, so here are the details:
HSBC Direct Rewards Card
5% cash back on gas stations, grocery stores, and drugstore purchases
Up to 1% cash back on everything else
No annual fee
0% on balance transfers for 12 months, with a $75 maximum fee at 3% of the amount.
$500 annual cap on rebates.
There are a few other hidden details:
Notice I said, "up to 1% on all other purchases", that's because for the first $3,000 you spend, you only earn 0.5% on everything else. After that, it's the full 1%. However, gas, grocery, and drugstore purchases are a flat 5%.
Also, HSBC sends you your check (up to $500) at the end of your anniversary year, as opposed to when you accrued $50 with the Citi Dividend. You must accrue at least $10 for HSBC to send you your check at the end of your anniversary year (of course, no problem for us).
Any thoughts? Also, to current cardholders of the Citi Dividend, without knowing the full details of the new cash back structures, will you now apply for this card?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Board Monitor
Board Monitor/ Administrator
Posted: Sat Aug 19, 2006 10:13 am
Interesting. Thanks for the post. I'm sticking with Blue Cash.
_________________
Regards,
Curtis Arnold
Board Monitor
http://www.CardRatings.com
20K+ Credit Card Reviews
Sign up for our free monthly e-mail newsletter!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Sat Aug 19, 2006 10:45 am
It's interesting. The fine print says the 0% balance transfer rate (3% fee, cap $75) is valid only for balance transfers completed at the time of application. I've always had problems with that sort of wording, since there's no way to know when you're applying whether you're going to be given a credit limit of $500 or $5000 or $50,000. How do you pick a balance transfer amount when you don't know what your limit is?
Still, with a cap of $75 on any balance transfer (or less:3%) and 0% for 12 months, it has to be worth doing. At the very worst, you'll pay a 3% fee to borrow money for 12 months, tops. Put it in a 5% savings account and you'll make a profit, guaranteed. (I deduct the fee as an investment expense, and I have to pay taxes of course on the interest earned. Still, I come out ahead. Others may not.)
I don't pay much attention to rewards structures because the benefits are tiny--FOR ME--compared to the 0% balance transfer benefits. I don't spend that much money and I already have two 5% rewards cards for gas, drugs, and groceries. Now, a friend of mine is an oral surgeon who purchases huge quantities of drugs for his medical practice. He'd save thousands of dollars on a card like this one each year.
I wouldn't turn down ANY 0% card with these terms. I wonder why others would! But since HSBC--again, FOR ME--has given me low limits in the past, I wouldn't expect too much of a limit. My current HSBC card is 0% for a year. I got it in November. $5,000 CL.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: hdporter
Credit Expert (100+ Posts)
Posted: Sat Aug 19, 2006 11:30 am
Yeah, I detest the "no fee BT, only at time of application" thing. While some don't mind, I don't want to end up with a maxed out card. You think they'd allow 30 days from the time of account approval, at minimum.
- Harry
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 9:31 AM
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