HSBC Star Alliance Card - Keep or Cancel?

Those with the HSBC Star Alliance card will be coming up to their 1 year Anniversary soon (mine not till March 25).

Wanted to gauge if people going to keep or cancel.

Decision based on following:

  • Card annual fee is $450
  • Must also spend $60k to get Star Alliance Gold
  • Points per month 1:1 at $3k spend then 0.5:1 thereafter
  • Due to points cap and transfers $60k gets you only 38k Aeroplane points
  • If cancel can only apply again after 18 months

Original bargain:
https://www.ozbargain.com.au/node/802518#comment

Poll Options

  • 3
    Keep pay full $450 fee
  • 2
    Keep but seek fee waiver/discount
  • 1
    Keeping as I got a fee waiver/discount
  • 42
    Cancel & reapply after 18 months
  • 8
    Cancel & will not reapply

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Comments

  • has that deal expired? just get your partner to sign up

  • -1

    Having been in the programme and still is currently, there is an argument to keep it even though at $450. However, on the next anniversary, I will cancel it simply because of the wrong timing (enrolled in November) AND the fact that they didn't let me increase the limit to accommodate my spend requirement despite good credit score and impeccably repayment history (another reason why I hate Responsible Lending law - it treats good people as bad as bad ones).

    • +1

      another reason why I hate

      username checks out

  • +1

    It depends on how much use you get out of the status.

    I think the only group of people who it may potentially be useful for are those who regularly fly with different Star Alliance airlines, but not enough with any particular one to be able to get to a high status. Example would be if you take a few flights with each of Singapore, Thai, ANA, United…etc., but don't have any particular loyalty to a single one.

    If you choose SQ (or some others, I don't recall which exactly), you'll also get the equivalent of Virgin Gold status, which is useful if you intend to fly Virgin regularly.

    FWIW, $60k p.a. spend is also not an insignificant amount - if you are single / don't have a family, it'll be hard to hit for most IMO.

  • +1

    It is only 2 HDMI cables from Gerry to meet the requirement ?

  • +2

    Cancel and churn other cards. Not worth it. Hope they have a better sign on bonus in 18 months - current one is quite mad.

  • +2

    churn and burn

    Also i didn't realise this but the star alliance gold was attached to the card being valid, so when you close it you lose Star Alliance Gold.

    • +1

      yeah its in the T&Cs and makes sense otherwise people just burn it sooner and HSBC makes no money.

    • I closed mine more than a month ago and curiously I still have 50k status. Not that I'll be using it.

  • Out of curiosity, I'm about to enter my 2nd year on this card (reached the 60k spend).

    Is there much difference if I decide to switch from Air Canada FF to KrisFlyer?

    Does anyone have any insight into this?

    • +1

      KrisFlyer will not give you a full 12 months membership. This is because at your anniversary, they will add 2 weeks for you to decide which programme you want to be with (you're allowed to switch once a year) and then takes another up to 2 weeks for KrisFlyer to make the membership (or extending the membership). The membership then goes until your Credit Card anniversary (regardless on when the membership was first granted).

      During the 2+2 weeks period, if you haven't met the Krisflyer retention eligibility, you will be downgraded from Gold to Silver. It used to be quite beneficial to be in Gold with things such as priority checkin/boarding but that is now given in Silver too.

      AirCanada however will give you AT LEAST 12 months membership.

      • This is very helpful.
        So all in all, after what you're saying, probably makes most sense to stick with Air Canada?

        • +1

          In general yes, however, joining Air Canada comes with the potential technical issue with lounge and points. They can be rectified but a pain the arse.

          To give you an example, last time I flied SQ, they defaulted my points to be earned as Air Canada points so I had to manually change to KrisFlyer (because I don't have intention to fly Air Canada) but then afterwards, SQ Lounge Access became an issue because I didn't have a status with SQ (because I flied SQ as an Air Canada customer/FF) so I had to explain to the Lounge that as Air Canada flyer, I do have access to SQ lounge and then the Melbourne lady then asked, "Then, why aren't you shown in the boarding pass as Air Canada but instead as Krisflyer customer?".

          Eventually, I worked my way through but you might have to do this everytime at the airport. The only exception to this was when I was in Singapore and Indonesia when the ladies were smart enough to work out my preferences.

          • @burningrage: interesting….that is where I'm at as well as I'd prefer to fly with SQ > Air Canada.

            so with that example, what you're saying is (put in a simple way):

            Put my details in as SQ but remind the airport check-in staff that I'm with Air Canada (Gold Status)?

            • +1

              @bawlingonabudget: What you want is to accrue the points in Krisflyer but still get the Air Canada status benefit. This is what you need to tell the check in counter person.

              In airport like Indonesia and Singapore, they will understand this.

              In Melbourne however, (being Menzies who probably doesn't know jack about Star Alliance), you would have to make sure the Boarding Pass shows Krisflyer (with no status) but approach the SQ lounge anyway and show your Air Canada Star Alliance Gold membership (via app).

              Lastly, despite of what Star Alliance says, you have no entitlement to Security Express Path in Melbourne but do have that entitlement at least in Jakarta (CGK) and Narita (NRT). I have tested it. No Express Path exists in Singapore.

              • @burningrage: I guess if you have SQ award flight, you cannot get entry to the lounge ?

                • @yht: How you 'purchased' the ticket has no impact on lounge access

                  • @yeahyeah: Ok thanks. But I won't get a special treatment such as priority baggage etc

                    • +1

                      @yht: you should get everything with your status. There's a way to say i want the points to go to this program and i want the status benefits from another program, but most people don't split program so most people don't know how to action it. Personally i'd just show the card

              • @burningrage: that's very good to know, thanks for sharing.

                One last note re the strategy you mentioned - am I eligble if I do it that way?

                I don't want to book a ticket via Krisflyer and miss out on my Air Canada status benefits if you get what I mean. Not sure if I'm willing to risk that.

  • +2

    Because of the Gold status, the 3 overseas trip I did this year I gravitated towards SQ and Thai.

    Definitely got good value worth more than $450 fee out of 9 or so flights going via Singapore or Bangkok.

    Plus two trips to Japan got me into good ANA lounge in Narita.

    Then on couple occasions in transit was able to sleep and shower at the Gold lounge in SIN overnight instead of booking a hotel room so that saved me $.

    Plus booking tickets with 20kg but able to take 40kg was well worth it as I came back with lots of shopping for family.

    However, the $60k spend is really too steep, especially since you only walk away (after all the conversions) with about 38k Aeroplane points.

    Since I also have a Amex QF card with no cap, so $60k spend can get me 60k QF points , which will take me much further.

    But the fact that I might have 3 more trips next year to SE.Asia does make the card still appealing and might consider keeping for just one more year

    • Good to know. Similar experience with mine but with AirCanada (after jumping ship from SQ). If you travel often enough, this card is useful. The only drawback is indeed the $60k which is extremely hard to reach.

    • Can you transfer the points that you made by purchasing using the HSBC Star Alliance Card from Star Alliance membership to Kris Flyer OR you can only redeem it with an award flight ? This with note that I joined Star Alliance instead of Air Canada

      • Dont think Inhave read anyone able to transfer.

        Besides booking an award flight, I have read some converting to gift cards and selling the gift cards.

        • Thanks

          • +1

            @yht: you can't do anything with the points sitting in your star alliance rewards account. your only option is to transfer them to an airline. If you want air canada, good. if you want krisflyer, thats fine too

            • +1

              @yeahyeah: So we can actually transfer the points to krisflyer account ?

              • +1

                @yht: yeah but once theyre in your air canada account, they stay there

                • @yeahyeah: @yht So the bonus points in Air Canada account cannot be moved to anywhere else.

                  But your talking about the other points you earn on the credit card which goes to the Star Alliance account.

                  My understanding is those points generated by your HSBC spend will go to Star Alliance and beacuse you have chosen to keep Air Canada (to keep Gold status) therefore those points go to your Air Canada account?

                  But I think you saying you can change your Star Alliance account to SQ so that all your HBSC spend go to Star Alliance and then SQ.

                  I too would prefer SQ points but my concern is not able to use or losing my Gold Status.

                  All my trips were a breeze as my boarding pass showed AC Gold status on them, so go priority security lanes and lounge with no questions asked.

                  • @bargrin: I haven't done it myself but when i log in i have a chosen airlines for status, but in my reading of it i can convert points to other programs, though for most people the status airline and the points airline will be the same.

                  • @bargrin:

                    bonus points in Air Canada account cannot be moved to anywhere else.

                    Can't the bonus points in the Air Canada account, be redeemed for flights with the partner airlines, eg. SQ ?

                    • @whyisave: yes but they can't be moved from one program to another

  • I will need to sign up to this HSBC card, to get the 'Gold' status,
    because I don't qualify for any of the other banks' promotion (I'm within 12 months).

    Currently, these 2 offers are still available:

    United Airlines 20,000 bonus miles
    - https://www.united.com/en-au/hsbc-star-alliance-20k-promo

    Air Canada Aeroplan 50K Status
    https://www.aircanada.com/au/en/aco/home/aeroplan/credit-car…

    Personally, I like Singapore Airlines [SQ] and I would fly with them semi-regularly,
    and I have no interest with flying Air Canada at all.

    I'm also a frequent flyer member with United [UA] and SQ,
    but SQ points expire in tranches, every 3 years, so this is annoying,
    whereas the UA points have a lifetime and the UA points really come in handy
    when redeeming for flights in regions that SQ don't have much of a presence in.

    Now, I've also seen this thread:
    - Those with HSBC Star Alliance Credit Card & Have Chosen Singapore Airlines As Your Star Alliance Status Airline - Read on
    - https://www.ozbargain.com.au/node/817847

    I'm just thinking, that if I still choose the Aeroplan deal now (August/September 2024), because it's better value than the UA deal,
    then, can I still continue to divert my $ spends on the card to the KrisFlyer programme ?
    I mean, can the first $4K spend go towards KrisFlyer?

    I've also read/heard that the Aeroplan points can be redeemed for other Star Alliance flights as well, but are there any tips / tricks for that ?

    Also, I plan to travel in 2025 (for about 2 months, between June - August), so I'm sure to be within the 12-months of membership time,
    before I would return to Australia and discontinue the card, and prevent the renewal.

    • +1

      How is the Aeroplan deal better? Didn't it only give you the '50K' status without the 50K bonus points now?

      • The Aeroplan deal is not better than what was offered before June 2024.
        I realized that —after— writing the above, and then reading into it more thoroughly.

        It was 50K points and "50K Status" (they just called the Status, the same term '50K' )
        Now, it's only the "50K Status", but no 50,000 Aeroplan points.

        Anyway, I applied for the HSBC Star Alliance card late last week.
        I just got rejected by HSBC, for the StarAlliance promotion.

        No specific reason was given at all;
        just a "we cannot offer this to you", and no other elaboration.

        I'm not a risky person, in terms of loans, mortgages, liabilities, etc.
        However, in last 2 years, I've had about 6-8 credit cards, which were churned
        (eg. I even had the same ANZ card 2x, within a 18-month period cancelling them both, before the time of the HSBC application)

        I never bought things on credit, and always satisfied the minimum spend criteria, to claim the benefits.
        I never did balance transfers, ie. I had no 'debt balance' to even transfer.

        At present, I only have 2 x Credit Cards: Citi Premier and AMEX Essentials.
        They are all at their minimum credit limits.

        For HSBC, I also applied for the lowest credit amount.

        • +1

          The aeropan status name is quite confusing "50K", at first i thought they extended the promotion too.

          The rejection has been high in recent months. Noone really knows why or whats the new criteria is. I was rejected by Virgin Money last year, but upon requesting review, they approved my card straightaway.

          • @richrichie:

            The aeropan status name is quite confusing "50K", at first i thought they extended the promotion too.

            Yes, you are right.
            The name is misleading but I don't know if that's deliberate, or just coincidence.
            It feels like they're giving you the 50K worth of points, but the name of the status is called "50K", ha

            I was rejected by Virgin Money last year, but upon requesting review, they approved my card straightaway.

            I get pre-approved straight away by the card providers, but about a couple of times, eg. ANZ or Virgin, I get extra questions, just to satisfy their salary requirements, because I get irregular payments due to fluctuating overtimes worked.
            It's that approving staff-member has their job on the line, when they approve the application, so I get that.

            Now, when I read other stories - here and here about card rejection, and the same rejection was dished out to me too, doesn't give me confidence to want to apply again for another card.
            I'm not handling this rejection well!
            It's my first time, too :-\

            I have a few big spends coming up, so I needed a new card in the next 2-weeks, and now, I can't really go to any card provider (ANZ, Virgin, NAB, St. George)…because I churned from them, in the last 12 months, haha

            • +1

              @whyisave: Those two banks (ANZ n Virgin) were also the ones that ask more questions for my application, despite a very average looking regular payslips.

              And we are surprisingly ok with AMEX. Churned about 4 cards per year, so roughly the same as yours?

              And have you gone through the alternate card version of each bank? E.g. both ANZ and NAB have two different cards that do not overlap (Rewards n Qantas). I just got approved by NAB a few hours ago, within 1 min of application.

              And if you are a commbank yello customer, CBA's offer is decent (50K QFF) with no annual fee if you spent certain amount. Also got approved overnight if you need something quick.

              There is also the citibank rewards card that give you about 80K velocity for $199 annual fee (+ a bunch other variations with higher annual fee). Not sure about approval time though.

              • @richrichie: ANZ and Virgin, were also the ones that just needed a little bit of extra convincing, even after pre-approval online. I get this, because of irregular payment cycles,…which all add up at the end to be in the 'right' salary bracket for the bank's purpose.

                The good thing about ANZ or Virgin were, they would give lounge passes or a voucher (or cash) for a free flight inside Australia, etc.

                I only had my most maximum churn of cards last 18 months, ie. I had 4-5 cards at the same time (ANZ 2x, VirginMoney 1x, St. George Amplify 1x, NAB 1x, Westpac 1x).
                The thing is, I already have a Citibank Premier card (ex-Signature no annual fee) and kept an AMEX Essentials for good measure.
                They are both fee-free cards.
                So, at present these 2 cards are with me,…but mortgage brokers tell me to cancel them, haha

                Anyway, my understanding is if you've used the credit card of a bank in the last 12-months, you won't be eligible for the bonus offers.
                Since, I had NAB Rewards last year (I cancelled beginning of this year, I think), I won't be eligible for that.

                Furthermore, I really don't like the Qantas program and stick to Virgin, whenever I can.

                I'm not a CBA customer at all, but I did see their offer of 50K QFF.
                Since it's QFF, I got turned off that deal.

                If there is the Citibank Rewards card for 80K VFF for $199 Annual Fee, that's not "so bad", because I would be 'buying' those points at a not-so-best-price, but I wonder if I would still be eligible if I already have the Citi Premier card ($10K limit).

                I really kind of wanted the HSBC Star Alliance back in June 2024, to join Aeroplan, but I was procrastinating and lazy to join. Then again, if HSBC are rejecting me now,…maybe they would have rejected me back in June too.

                • +1

                  @whyisave: Ha! I used to have that same citibank card and another Amex Velocity (the one with no fee). Got rid of them when I started churning, as they were stopping me from full churning potential lol.

                  These days I aim to not hold more than 3-4 cards at the same time, timing my next application to the next big purchase / bills and the completion of previous requirements.

                  Also, NAB, Bankwest and AMEX are 18 months wait time, so I tried to cycle them faster. NAB rewards and NAB Qantas card are separate waiting time. I got both same year and still receive bonus points for both.

                  Understandable of prefering Velocity. QFF has much limited redemption. Though I am less picky now given choices of cards with big bonus pts are more limited, so I am collecting both haha.

                  Was quite useful for me when planning future trips if I have both. China Airlines + JAL + Finnair have some decent business awards availability via QFF to complement the SQ n Qatar flights from velocity.

                  • +1

                    @richrichie:

                    I used to have that same citibank card and another Amex Velocity (the one with no fee). Got rid of them when I started churning, as they were stopping me from full churning potential lol.

                    I'm not bold enough to let go of that Citibank Premier [ex-Signature] card (yet!)
                    I am emotionally attached to it, with its high credit limit ($10K) and the Priority Pass visits.
                    I think I have about 80K points with that card as well, and don't know where to transfer them to.

                    The other AMEX is the Essentials card, which I kept because I had another AMEX card before, and AMEX service and portal is so good, that I just decided to stay on with AMEX,…but downgrade to the Essentials, just to be able to use the odd offer.
                    I have a huge stack of points on AMEX too, and AMEX sends me Emails trying to get me off Essentials, but I don't bite.
                    I asked AMEX if they would sweeten some deals for me, to get me to upgrade to a different card or sign me up to bonus offers, but they said no, a couple of years ago. Maybe, I should try again :-)

                    These days I aim to not hold more than 3-4 cards at the same time, timing my next application to the next big purchase / bills and the completion of previous requirements.

                    Last year, was my best haul of cards, ie. 4 cards, and I had them with Virgin, St. George, NAB & Westpac (while I still kept my Citi and Amex). My mortgate broker thought I was being stupid, ruining my credit record, and I told him that I don't buy things on credit,…but still he did not like it.
                    I need to be more disciplined like you, then.

                    Understandable of prefering Velocity. QFF has much limited redemption. Though I am less picky now given choices of cards with big bonus pts are more limited, so I am collecting both haha.

                    Yes, I really stay inside the VFF ecosystem, because I find the VFF redemptions for domestic flights reasonable.
                    I have also some Virgin credit in the TravelBank, because I could not avail some ANZ free flights from their credit card deals, from the C*v!d times.
                    VFF points value have gotten diluted very fast, but I can transfer that to KrisFlyer when I want to.
                    The worst exchange rate is with Qatar Airways.

                    Anyway, I signed up to the BOQ deal for 60K VFF yesterday, so let's see if they'll reject me too,…seeing HSBC rejected me, earlier in the week.

                  • +1

                    @richrichie: @richrichie

                    I signed up to the BOQ deal for 60K VFF

                    BOQ approved me within 1+ day.
                    Physical credit card is en route,
                    and I will need to open up a BOQ account this week.

            • +1

              @whyisave: Actually completely disagree with you both of the name being misleading. Their status levels have been called that for years and it's based on how many qualifying status miles you need to earn to reach that level 25k, 50k, 75k etc - in the same way Velocity and Qantas use status credits. And they're certainly not the only airline to call status levels after a figure like that.

              Yes there was a promotion to earn 50,000 bonus points at the same time and people didn't quite read through what they clicked on and decided in their minds that 50k status was 50k bonus points, well that's on you. I received multiple emails from Air Canada on the promotion and they always said 50,000 bonus points, not 50K bonus points.

              The fact is the target market for their program is frequent flyers who actually fly on their planes, and know what their program is about. Not some random person on the other side of the world who happens to stumble into the program due to a credit card sign up.

              • @yeahyeah:

                Their status levels have been called that for years and it's based on how many qualifying status miles you need to earn to reach that level 25k, 50k, 75k

                Thank you, for explaining this.

                who actually fly on their planes

                Yes.

                I only flew Air Canada once, 20 years ago, and that was as an United Mileage Plus member.
                I'm still a UA member with points accumulating there, because they've changed that to a non-expiring frequent flyer program, whereas I prefer to fly SQ as I'm more closer to their region but KrisFlyer expires in tranches in 3-year periods.

  • Would collecting my air miles (after flying with any star alliance or ac partner) to air canada extend the expiry of my 50k points? I dont think there are any other ways to collect air canada points for australians.

    • +2

      that would work, also by hotel stays and car rentals. I think either my hertz or avis account has my American airlines number in it so i earn something occasionally which keeps my account active.

  • I am keeping it since I am getting the star alliance status for 2 years from the offer. I definitely get the value out of it as I travelled on and off for about 6 months this year. The lounge access is the best!

  • I set up my card with an Air Canada / Aeroplan account and was properly credited the 50k points, but my monthly spend isn't converting to points as per the spend per dollar so after almost a year my points are still at 50k flat. Does anyone know what issue this is / how to fix it?

    • +2

      They aren't an automatic transfer to the airline. Log in to your star alliance rewards account - that's where they'll be accumulating and initiate the transfer. For me transfers have been instant.

  • Thank you, all good now

  • +1

    Hi All,

    just fyi, if anyone is planning on flying with Air China (Star Alliance Member), you need to mention "AC" in front of the Aeroplan number. Otherwise, they won't be able to find and add your frequent flyer. I just came back from the trip and was able to use the Star Alliance Lounge.

  • Trying to figure out whether my partner:
    1) Keeps card
    2) Cancels before $450 renewal
    3) Cancel 1-2 months after renewal in December

    Conditionally approved: 21 October 2023
    Officially approved: 28 October 2023
    Card received and activated: 6 November 2023

    Hit the $60k spending requirement in March 2024.

    If (3), will the $450 fee be refunded prorata?
    I know the status is lost instantly when closing the card, but assuming nothing stops using the status during this time?

  • Good to see this is still active. Mine is coming up, I could hit the 60k spend through paying off HECS but then the fees (by using a 3rd party service) I don't think it's worth it.

    Eg, 30k would be around $300-400 in fees but the points would not be worth that much, and then the $450 renewal fee puts me at a loss in terms of points. Accruing almost $1,000 in fees doesn't seem to make sense, just to try to earn points and earn the chance to get into a lounge.

    Plus, i've never used the points I have, it's always costing far more than buying flights normally. Only just used the lounge a few times, because Star Alliance flights are more expensive than Jetstar etc.

    If I cancel the card, do I lose the AeroPlan status? I know I lose Star Alliance Gold, but AeroPlan says it will expire December 2025. Will I also lose my AeroPlan points?

    • HSBC seems to think that the cancellation won't affect status. Have to check air canada and star alliance

    • you definitely won't lose aeroplan points.

      i'm in the same boat, i have the aeroplan 50k status but literally just cancelled the card. still says 50k right now but will see if it changes soon. hopefully i have it until dec 2025.

      • same here, I'd like to know if I lose the Aeroplan status when I cancel the card, don't need it after the renewal this year.

      • Has the Aeroplan 50K status still stayed active? My card anniversary is coming up on Nov 7th but I have travels with SQ until Nov 19th. Hoping to not pay another year of annual fee but still get 50K benefits til the end of my trip.

      • do you still have the aeroplan 50k status now after cancelling the card?
        can you please update. on the same boat thinking whether to cancel the card or not. but definitely want to keep the 50k status.

        • ok i've lost the 50k status now. that sucks, maybe i should've kept it but my 1-year was going to elapse while i was overseas and i didn't want to get charged while i was there.

  • has anyone actually managed to get the second year annual fee waived on this card?

  • Just got email from Air Canada saying 50k/Gold status will extend to the new standard of 31 Jan instead of 31 Dec

    Now wondering, for those keeping and therefore paying the $450 annual CC fee and the $60k spend, when do you need to do the spend by?

    I think it's every second year?

    For example

    My CC anniversary date is March 2025, therefore if I want to keep Gold status going for April 2025 to 31 Jan 2026 then I need to pay the CC fee of $450 in that March 2025.

    Now if I want to extend my Gold staus beyond 31 Jan 2026, then I need to do the $60k spend between April 2025 and 31 Jan 2026 (preferably final spend in Jan 2026)

    But I only get Gold status upto March 2026 beacuse my CC fee of $450 will be up again then.

    However, if after doing the $60k spend in Jan 2026 and paying the $450 fee in March 2026, I will get Gold all the way to 31 Jan 2028

    Then I dont need to cycle the above again till 31 Jan 28 but will need to make another $450 fee in March 2027.

    So you pay $450 annually, but only do the $60k spend every second year?

    I think that right…..

  • Not sure if I can get others to confirm but my Aeroplan 50k still remain after cancelling the card 3 weeks ago.

    • Mine was removed within a few days of cancelling the card

      • how did you check it was removed? i cancelled my card 2 weeks ago but in the air canada app still says im 50k with star alliance gold…

        • +1

          The Air Canada app which used to show 50K status now shows pleb status.

  • Is anyone on their second year? Would like to know when they charge the annual fee. Considering keeping it 4 weeks after my anniversary as I will travelling and cancelling after.

    • They don’t pro-rata refund on the annual fee so you need to weigh up whether it’s worth keeping the benefit for $450 for just a few weeks.

      • Ohh poo… hopefully i will have the same luck as you then and still have status few weeks after cancelling. Did you cancel online?

  • I called.

    • Is yours still showing 50K status after cancelling?

      • I called and cancelled mine and my status disappeared in the Air Canada app within a couple of days.

      • Yeap still showing. Closed 16th October based on the letter.

  • I went with United. Cancelled after 1 month from the date annual fee posted. Opened Oct 23 Cancelled Nov 23. Met min spend Dec 23. Got the status pretty quick with UA.

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