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HSBC credit cards payment holiday

You’re no longer able to request a new payment holiday after 31 March.

If you’re currently on a payment holiday, we'll be in touch before it ends to let you know your options. If you're able to, you should begin making your monthly payments again. 

If you’d like to know more about payment holidays, please read our Frequently Asked Questions.

If you continue to experience financial difficulties after your payment holiday ends, or you haven’t taken one 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 does a payment holiday work?

It depends on how you make your monthly payments. If you make them by Direct Debit, we won’t collect any payments from you over the payment holiday period – you don’t need to cancel your Direct Debit instruction. If you pay by standing order, you’ll have cancelled this at the start of the payment holiday.

At the end of the payment holiday, we’ll go back to calculating your minimum payment as normal, based on a percentage of the total amount you owe at the time. It will take into account any increase due to interest, or use of your card, during the payment holiday. This means your minimum payment could be higher after the payment holiday ends. 

Do interest and charges apply during the payment holiday?

We’ll continue to charge interest at the usual rates during the payment holiday. Standard charges (for example, if you use your card to withdraw cash) will also apply. 

As you won’t be paying off interest during this period (which means we’ll charge interest on that interest, as well as on any transactions on your account), it may cost you more and take you longer to repay your balance.

Any amount you spend during the payment holiday will also increase your balance. This means you’ll pay more interest and your minimum payment will be higher after the payment holiday ends.

However, we won’t apply any charges for going over your credit limit during the payment holiday extension. There’ll be no minimum payments due over this period, so there’ll also be no charges for paying late.

£4,000 balance before payment holiday

  No spending 
Spending £200 per month
Balance after payment holiday
£4,223
£4,834
Balance increase
+£223
+£834
Minimum payment before payment holiday
£113
£113
Minimum payment after payment holiday
£119

£137
Minimum payment increase
+£6
+£24

£4,000 balance before payment holiday

  Balance after payment holiday
No spending 
£4,223
Spending £200 per month
£4,834
  Balance increase
No spending 
+£223
Spending £200 per month
+£834
  Minimum payment before payment holiday
No spending 
£113
Spending £200 per month
£113
  Minimum payment after payment holiday
No spending 
£119

Spending £200 per month
£137
  Minimum payment increase
No spending 
+£6
Spending £200 per month
+£24

£10,000 balance before payment holiday

  No spending
Spending £200 per month
Balance after payment holiday
£10,558
£11,169
Balance increase
+£558
+£1,169
Minimum payment before payment holiday
£283
£283
Minimum payment after payment holiday
£298
£316
Minimum payment increase
+£16
+£33

£10,000 balance before payment holiday

  Balance after payment holiday
No spending
£10,558
Spending £200 per month
£11,169
  Balance increase
No spending
+£558
Spending £200 per month
+£1,169
  Minimum payment before payment holiday
No spending
£283
Spending £200 per month
£283
  Minimum payment after payment holiday
No spending
£298
Spending £200 per month
£316
  Minimum payment increase
No spending
+£16
Spending £200 per month
+£33

The figures used are approximate and for illustration only. They don’t show exactly what will happen on your account. They are based on the following assumptions, which may not apply to your account:

  • that interest is charged at a single fixed rate of 21.9% per annum. The rates we actually charge depend on the terms of your credit card agreement, and the type of transaction. You can find more information about the standard variable rates which apply to your account in your agreement, or on your monthly statement
  • that we calculate your minimum payment based on monthly interest at this single rate, plus 1% of the assumed balance. Please refer to your credit card agreement for information about how we calculate your minimum payment

Should you cancel your Direct Debit?

You don't need to cancel your Direct Debit as we won't collect any payments during the payment holiday period.

If you do cancel your Direct Debit, or you’ve cancelled it already, you’ll need to set up a new one before your payment holiday ends. Once your new Direct Debit is in place, we’ll send a letter to confirm the details and will update your monthly statement with the new payment amount. Until then, you’ll need to manually make the payments. If you don’t restart your monthly payments when they’re due, your credit file may be impacted.

For help with ways to pay, including how to set up or amend 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. 

Making payments

You’re still able make payments towards your account during the payment holiday period. We won’t collect any payments by Direct Debit, but there are other ways to pay - you can find more information on the back of your monthly statement.

We encourage you to pay any amount you can afford. The more you’re able to pay, the less interest you’ll be charged and the lower your minimum payment will be after your payment holiday ends. 

What if you have an introductory or promotional rate on your account?

This will continue to apply for the rest of your introductory or promotional period, which won’t be affected by the payment holiday. After this, our standard rates will apply.

Can you still use your credit card?

You're still able to use your credit card as normal during the payment holiday period. However, if we’ve suspended your card for another reason (for example, because we see a risk of fraud, or we feel you won’t be able to repay what you owe), the payment holiday won’t change this.

Does this affect your credit rating?

We'll record this to make sure it doesn’t impact your credit file.

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

Why are new payment holidays only available until 31 March?

This is in response to guidance provided by the Financial Conduct Authority.

New payments holidays aren’t available after 31 March. However, if you’re currently on a payment holiday, you may be able to request an extension before your payments are due to resume – we’ll contact you about your options.

After this date, there’s still support available which will be tailored to your individual circumstances, but these solutions may impact your credit file.

What happens at the end of a payment holiday?

We’ll get in contact before your payment holiday ends to let you know your options.

If you’re able to, you should begin making your monthly payments again.

If you’ll be unable to make payments or meet your minimum payment due, we’ll let you know what further support is available. This could include the option to extend your payment holiday. The options available will depend on your circumstances.

Can you change a payment due date during a payment holiday?

No – the payment holiday gives you a break from making payments, so you won’t be able to change your usual payment due date until you’ve started making payments again.

Can you cancel a payment holiday?

No, you can’t cancel a payment holiday once it’s been confirmed. We’ll have changed your terms and conditions, so there are no payments due during this period.

However, you can still choose to make payments during the payment holiday period – we just won’t collect any by Direct Debit. You can find other ways to make payments on the back of your monthly credit card statement.

It’s easy to answer your query online. Visit our Help page to find out how.