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HSBC credit cards payment holiday

From 1 August, you’re no longer able to request a new or extended credit card payment holiday.

If you have any questions about a payment holiday you’ve taken previously, please read our Frequently Asked Questions.

If you’re currently experiencing financial difficulties and you’re worried about making your monthly payments, please let us know as soon as possible. We can discuss the support we have available based on your individual circumstances. Please be aware that the support we offer may have an impact on your credit file.

For more information, please visit our Money Worries page.

Frequently Asked Questions

How did my payment holiday work?

Your payment holiday meant you didn’t need to make monthly payments over the payment holiday period.

If you usually pay by Direct Debit, we won’t have collected any payments from you over this period. If you usually pay by standing order, we asked you to cancel this at the start of the payment holiday.

As your payment holiday has now ended, you’ll continue to see your minimum payment and the due date on your monthly statement as normal. You may have noticed this the amount is higher following your payment holiday. This is because your minimum payment is based on the outstanding amount you owe, which will take into account any increase due to interest or use of your card during the payment holiday.

If you cancelled your Direct Debit or standing order at the start of your payment holiday, you’ll need to set up a new one, if you haven’t already.  Until then, you’ll need to make payments another way. For help with ways to pay, including how to set up a Direct Debit, please visit credit card repayment options. You can also find information about ways to pay on the back of your monthly statement. 

Did interest and charges apply during my payment holiday?

Interest continued to apply at the usual rates during your payment holiday, as well as standard charges (for example, if you used your card to withdraw cash). We didn’t apply any charges for going over your credit limit during the payment holiday. There were also no charges for paying late, as there were no minimum payments due over this period.

As you didn’t have to make any payments during the payment holiday period, you may not have paid off all the interest added to your account. This means there’ll be interest will be charged on that interest, as well as on transactions added to your account.

Your balance may also have increased if you continued to use your card during the payment holiday, so you could be paying interest on a higher amount and you may have noticed your minimum payment is may be higher following your payment holiday.

If you usually make the minimum or fixed payments, it’s worth considering whether you can pay a higher amount. This means you’ll clear your balance and the interest sooner. 

If you’re worried about making payments, please visit our Money Worries page.

Did my payment holiday affect my credit file?

Taking a payment holiday didn’t impact your credit file, but providers may consider other information when making future lending decisions.

Why aren’t payment holidays available any longer?

This is in line with guidance provided by the Financial Conduct Authority. However, there’s still support available which will be tailored to your individual circumstances. Please visit our Money Worries page for more information. Please be aware that the options we have available are likely to impact your credit file. 

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