HSBC to allow international credit history for credit card applications

HSBC has become the first UK bank to offer newcomers to the country the chance to utilise their international credit history when applying for a credit card.

When you move country, the credit history and positive credit score you've built up over time don’t come with you, so new arrivals to the UK can find it hard to apply and be accepted for banking and other essential services. 

HSBC has teamed up with Nova Credit - a cross-border credit bureau - to offer a way to ease the financial transition.

Here, we take a closer look HSBC's pioneering service will work and what other options there are for accessing credit if you have a limited UK credit history.

How does it work?

New and existing customers applying for an HSBC UK credit card online will be given the option to use their international credit history to support their application. 

Your international credit history is your credit information from a credit bureau in a country or region, other than the UK. The service is currently available in 12 countries including Australia, Brazil, Canada, Dominican Republic, India, Kenya, Mexico, Nigeria, Philippines, Spain, Switzerland and the US.  HSBC said it is working with Nova Credit to add more countries to the list. 

If you select yes, HSBC will work with Nova Credit to access a translated version of your credit history. You’ll have to consent for this information to be shared. 

This service will be free to use as part of your application and you’ll still need to provide support documents such as ID and income details. 

What other information will you need to provide?

HSBC said while the exact information differs by bureau, you will often need to provide basic personal information such as your first and last name, date of birth, email address, previous addresses, and home country ID number. You may be asked to answer a few verification questions based on your credit report or use your home country phone number to provide a one-time password.

For Indian bureaus, you’ll need to provide additional identifying information including your family name when you applied for credit in India, the address and phone number you had when applying for credit and either your permanent account number, passport number or voter ID.

• Find out more: credit reports: all you need to know 

How does it impact your credit score in another country?

If you decide to share your international credit history with HSBC, the impact of the application on it will depend on which country you are from. 

HSBC says if you are using credit history from Australia, India, Spain or Switzerland it will be a ‘soft’ inquiry and won’t be recorded on your file so won't affect your credit score.

However, if you are using credit history from Brazil, Mexico, Nigeria, Philippines, or the United States it will be recorded as a ‘hard’ inquiry on your report, so it could impact your credit score.

• Find out more: if you're new to the UK use our guide on how to check your credit score for free and get tips on boosting it with our guide on how to improve your credit score

What credit cards do HSBC offer?

HSBC offers a range of credit cards including a competitive 0% balance transfer and 0% purchase as well as a credit builder and a reward deal that are only available to HSBC current account customers. 

If you're not yet a HSBC customer, and you live in the UK, you can apply for its Balance Transfer or Purchase Plus credit card. 

The HSBC Balance Transfer Credit Card offers up to 27 months interest-free on balance transfers with a 2.99% fee. The card has a representative APR of 23.9% (variable). Credit is subject to status and terms apply. 

The Purchase Plus Credit Card offers up to 20 months interest-free on purchases, and 17 months interest-free on balance transfers with a 2.99% fee. The card also has a representative APR of 23.9% (variable). Credit is subject to status and terms apply.

If you're not an HSBC customer the maximum limit you could be offered on these two cards will be £1,000. HSBC says higher limits are available on these cards if you have an HSBC current account.  

Is HSBC a good credit card provider?

Which? surveyed thousands of credit card customers in April 2023 to find out how satisfied they were with their providers, including HSBC.

We also asked them to rate the companies across a range of customer satisfaction categories, from the application process right through to the ease of banking online and customer service.

HSBC customers gave it a score of 68%, meaning it came joint 23rd of 29 providers, along with 118 118 Money and the Co-operative Bank. 

The bank achieved four stars out of five for its application process, but it received a middling three stars for its customer service, mobile app, clarity of statement and transparency of charges.

• Find out more: take a look at our HSBC credit card review and our round-up of thebest credit card providers 2023

How else can you access credit if you’re new to the UK? 

Credit cards for 'bad credit' are designed for those who aren't eligible for mainstream credit cards because they have a poor credit score, or no credit history. 

These cards have lower limits, higher interest rates and fewer benefits than other credit cards, but they will allow you to build up your UK credit rating if used sensibly. We’ve set out the market-leading cards in our guide on the best credit cards for bad credit .

There's also a selection of providers that use open banking to assess your suitability for a credit card, rather than your credit score, such as Yonder.

• Find out more: 5 credit cards you may not have heard of

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