Want to maximise your everyday rewards?

In the UK credit card market, not all cards are built with the same purpose. Some are designed to help you manage debt, others to spread the cost of purchases, and some to reward you for spending you already do. The HSBC Rewards Credit Card clearly belongs to this last group. It is aimed at people who want to turn everyday purchases into points, without paying an annual fee.

This article is written specifically for a UK audience and provides a complete, practical overview of the HSBC Rewards Credit Card. We will explain how the card works, its main advantages, who it suits best, and how to use it effectively. In the second main section, we will compare it in detail with the Purchase Plus Credit Card, using the official features and benefits of that card to highlight the key differences. We will also briefly bring Santander cards into the discussion to give broader context within the UK market.

The goal is to help you decide whether earning rewards or spreading the cost of purchases is the better fit for your financial habits.

Overview of the HSBC Rewards Credit Card

The HSBC Rewards Credit Card is designed for UK residents who want a straightforward rewards card with no annual fee. Instead of cashback, it offers HSBC Rewards points, which you earn as you spend and later redeem for a variety of options.

This card is best understood as a spending companion, not a borrowing tool. Its value comes from how you use it day to day, rather than from promotional interest-free periods.

Key characteristics

• No annual fee
• Earn HSBC Rewards points on eligible purchases
• Designed primarily for everyday spending
• Digital wallet compatible and fully managed through HSBC online banking and app
• Credit subject to status, affordability, and terms and conditions

For people who already use a credit card for regular spending and pay their balance responsibly, this card offers a way to gain extra value without changing habits.

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How the HSBC Rewards Credit Card Works

Earning rewards points

Each time you make an eligible purchase using the HSBC Rewards Credit Card, you earn reward points. These points are automatically added to your account and can be tracked through HSBC’s mobile banking app or online banking.

The process is simple:

• Use the card for everyday purchases
• Points are earned automatically
• Points accumulate over time

There is no need to activate categories or opt into rotating offers. This makes the card easy to use and predictable.

Redeeming rewards

HSBC Rewards points can typically be redeemed for:

• Shopping vouchers
• Gift cards
• Other reward options offered through HSBC’s rewards platform

This flexibility allows you to choose rewards that suit your lifestyle, rather than being locked into one type of benefit.

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Main Benefits of the HSBC Rewards Credit Card

Rewards without an annual fee

One of the strongest selling points of the HSBC Rewards Credit Card is that it does not charge an annual fee. In the UK, many rewards cards require a yearly payment, which can reduce or eliminate the value of the rewards unless you spend heavily.

With HSBC Rewards, even moderate spenders can benefit because there is no fixed cost to offset.

Ideal for everyday spending

The card is designed to be used for:

• Groceries
• Fuel
• Online shopping
• Subscriptions
• General household expenses

Instead of seeing these purchases as neutral spending, the card turns them into an opportunity to earn something back.

Purchase protection under UK law

Like other UK credit cards, qualifying purchases between £100 and £30,000 are protected under Section 75 of the Consumer Credit Act. This means you may have additional protection if a retailer fails to deliver or misrepresents goods.

Fully digital and easy to manage

The HSBC Rewards Credit Card integrates seamlessly with:

• HSBC online banking
• The HSBC Mobile Banking app
• Digital wallets such as Apple Pay and Google Pay

You can check balances, track spending, monitor rewards, freeze your card, and make payments all in one place.

Suitable for building or maintaining credit

When used responsibly, the HSBC Rewards Credit Card can help you build or maintain a positive UK credit history. Regular on-time payments and sensible credit usage contribute positively to your credit profile.

Who the HSBC Rewards Credit Card Is Best For

This card is particularly suitable for UK consumers who:

• Regularly use a credit card for purchases
• Usually pay off their balance in full or keep balances low
• Want rewards without committing to an annual fee
• Prefer points and vouchers rather than cashback

It may not be ideal for people who:

• Plan to carry balances long term
• Are focused on clearing existing credit card debt
• Want long interest-free periods on purchases

For those needs, a Purchase Plus Credit Card may be more appropriate.

Purchase Plus Credit Card Explained

To properly compare, it is important to understand what a Purchase Plus Credit Card is designed to do.

The Purchase Plus Credit Card is positioned as an all-rounder for people who want flexibility when spending. Its main focus is allowing you to spread the cost of purchases over time with extended interest-free periods.

Key features of a Purchase Plus Credit Card

• 0% interest on purchases for up to 20 months from account opening
• 0% interest on balance transfers for up to 17 months, if completed within the first 60 days
• Balance transfer fee of 3.49% per transfer, minimum £5
• No annual fee
• Representative 24.9% APR variable, based on an assumed credit limit of £1,200

This type of card is designed for cost control, not rewards.

HSBC Rewards Credit Card vs Purchase Plus Credit Card

Purpose and core difference

The most important distinction is what each card is built to do.

• HSBC Rewards Credit Card: Rewards spending
• Purchase Plus Credit Card: Spreads the cost of spending

If you pay your balance in full each month, rewards matter more than interest-free periods. If you need time to repay, interest-free periods matter more than rewards.

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Spending and interest

With the Purchase Plus Credit Card:

• You can make purchases and pay 0% interest for up to 20 months
• This is ideal for larger expenses such as furniture, electronics, or home improvements

With the HSBC Rewards Credit Card:

• There is no extended 0% purchase period
• Interest applies if you do not pay your balance in full
• The value comes from points, not borrowing flexibility

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Balance transfers

The Purchase Plus Credit Card also allows:

• Balance transfers at 0% interest for up to 17 months
• Transfers must be completed within 60 days
• A 3.49% fee applies to each balance transferred

The HSBC Rewards Credit Card is not designed for balance transfers. If managing or reducing debt is your priority, Purchase Plus is clearly the stronger option.

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Rewards vs cost savings

This is where the trade-off becomes clear.

• HSBC Rewards gives you points on spending, but interest can quickly outweigh rewards if you carry a balance
• Purchase Plus does not reward spending, but saves you money by eliminating interest for a long period

In practical terms:

• Rewards cards benefit disciplined spenders
• Purchase Plus cards benefit people who need time to repay

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HSBC Rewards Credit Card vs Santander Credit Cards

Santander offers a variety of credit cards that compete in both categories.

Santander rewards-style cards

Some Santander cards focus on:

• Cashback rather than points
• Account-linked benefits
• Simpler reward structures

Compared with HSBC Rewards:

• HSBC offers points and flexible redemption
• Santander may appeal more to people who prefer direct cashback

Santander purchase-focused cards

Santander also offers cards with:

• Introductory 0% purchase periods
• Emphasis on spreading costs rather than earning rewards

These are more comparable to Purchase Plus cards than to HSBC Rewards.

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How to Choose the Right Card for Your Needs

A simple decision framework can help.

Choose HSBC Rewards Credit Card if:

• You spend regularly on a credit card
• You usually pay your balance in full
• You want rewards without an annual fee
• You enjoy collecting points and redeeming vouchers

Choose a Purchase Plus Credit Card if:

• You want up to 20 months interest-free on purchases
• You need flexibility to repay large expenses
• You may also want to transfer existing balances
• Avoiding interest is more important than earning rewards

Consider Santander if:

• You prefer cashback to points
• You already bank with Santander
• A specific Santander offer fits your spending pattern better

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Costs and Interest: What UK Consumers Should Consider

Even with rewards or interest-free periods, credit cards still involve borrowing risk.

Important points:

• The representative APR on both cards is 24.9% variable once promotional periods end
• Interest-free periods are temporary
• Missing payments can cancel promotional benefits
• Late payments may result in fees and damage to your credit file

Responsible use is key to getting value from either type of card.

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Using the HSBC Rewards Credit Card Effectively

To maximise value:

• Use the card for everyday spending you can afford
• Pay the balance in full whenever possible
• Track and redeem your rewards points regularly
• Avoid cash withdrawals, which usually incur higher costs

This approach ensures rewards remain a benefit rather than a distraction from good financial habits.

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Final Thoughts

The HSBC Rewards Credit Card is an excellent option for UK consumers who want to earn rewards on everyday spending without paying an annual fee. It works best for disciplined users who treat their credit card as a payment tool rather than a borrowing solution.

When compared with a Purchase Plus Credit Card, the difference is clear. HSBC Rewards focuses on earning value from spending, while Purchase Plus focuses on reducing the cost of borrowing through long interest-free periods.

Both cards can be valuable — but only when matched to the right behaviour. Understanding whether your priority is rewards or repayment flexibility is the key to choosing the right credit card for your needs in the UK.