If you are seeking for student cards from HSBC, the place to look is Orchard Bank. Credit cards offered by Orchard Bank are backed by HSBC. They are not specifically aimed at students but at all consumers who need to build their credit for the first time or need to repair previous bad credit by using credit wisely.
The old joke about banks also applies to credit card applications. It’s well known that the best way to qualify for a bank loan is to have money in the first place. With credit cards, the way to be approved to use a credit line is to have previous demonstrated creditworthiness.
College students are at a disadvantage when applying for their first card. If a parent co-signs and the parent has good credit, the application will be approved.
However, many college bound students are ready to stand on their own financially. They are experiencing for the first time the freedom of living away from home and being responsible for their own day to day purchase and expenses.
Back in Time
Several years ago credit lending banks realized the value of college students to the bank’s future business profits. Workers with a college education are known to earn more money on average than workers without high education degrees.
The result was a rush by banks to sign up college students for new credit card accounts. The risk of granting credit to someone who had not yet demonstrated the ability to handle money responsibly was balance in the eyes of the lending banks by the opportunity to acquire new account holders who would use their cards for years to come.
Brand loyal is a big draw for some. Though there is little real difference between Visa and MasterCard, both logos have consumers who insist on one or the other as their favorite choice.
HSBC was one of the rare large lenders that did not launch its own student credit card offers. Instead, students were encouraged to use student cards from HSBC offered through though other banks but backed by HSBC.
These accounts are standard credit accounts that have lower qualifying requirements. They also carry higher fees but that is the price of having no credit or poor credit in the real world.
Advantages
The HSBC Orchard bank credit cards are not new. They have been tested in the marketplace and are well respected. Though initial fees are somewhat higher than those of major credit cards, the fees are not excessive.
Students can qualify for these HSBC student cards on their own even if they have little or no credit established. They will need to have some source of income or, alternatively, have a parent or guardian co-sign the application to guarantee payment.
The greatest benefit for students using the HSBC student cards is the lack of marketing aimed at encouraging students to use their accounts for additional purchases.
No sector of the population is perhaps more financially challenged than today’s college student. Fees at institutions of high education have been rising drastically as states struggle to balance over-stretched budgets.
Parents affected by the economic downturn and job loss are not able to provide the help they expected to give their college bound child.
When a student applies for an HSBC student card through Orchard Bank, he receives a credit account with a MasterCard logo that can be used just like any other MasterCard.
He doesn’t receive frequent mailers encouraging him to take advantage of various “offers for students only” that might lead him to overspend and create more credit debt.
Consumers love rewards and students are no exception. A basic student card from HSBC forgoes the reward features that lead consumers to think of air miles or cash reward points rather than considering the cost of a purchase paid over time.
Disadvantages
The same no-frills features that may keep students from over-charging can be viewed as a disadvantage by some college age consumers. The lack of extra points for certain charges made and special offers for using their credit card for purchase may be a downside for some students.
Summary
HSBC does not offer a credit card that is designed solely for students. However, the HSBC backed Orchard Bank MasterCards are a good choice for college bound students who want a solid credit account without frills and enticements to spend more.
