Have you got a personal loan or credit card with HSBC and you’re wondering what happens next? You’re not alone. HSBC has announced it is closing its Australian retail banking business, and many customers are asking whether they need to act now.
At Stellify, we approach finance with passion, integrity and collaboration – to build trust and to help you make confident decisions that empower your financial future.
Key takeaways:
- HSBC announced on 31 July 2026 that it is closing its retail banking business in Australia, and the wind-down is expected to take around 18 months.
- HSBC’s personal loans are being sold, and Pepper Money is expected to manage and service them from the first half of 2027, subject to regulatory approval.
- For now, existing loans and credit cards continue as normal, and HSBC has said you don’t need to take urgent action.
- HSBC is no longer taking new applications for retail products, including credit cards and personal loans.
- You don’t have to do anything, but it might be a good time to review your options.
What is Happening at HSBC?
HSBC has announced it will close its retail banking business in Australia following a review. Its corporate, institutional and private banking arms are not part of the closure. The rest of the retail business, including credit cards, is being wound down in phases over roughly the next 18 months.
Trust – We believe in clear, honest information, so you can make decisions without pressure.
What Happens to Your HSBC Personal Loan?
HSBC has entered a sale agreement for its home loan and personal loan portfolio, including personal credit line accounts. Pepper Money is expected to manage and service these loans from the first half of 2027, subject to regulatory approval.
According to HSBC, there are no fees for transferring your loan, and your loan will continue on its existing terms. You won’t be moved onto Pepper Money’s advertised rates.
Until then, there is no change to your loan, so keep making your repayments as normal.
What About Your HSBC Credit Card?
For now, existing HSBC credit card accounts continue to operate. However, HSBC is no longer accepting new applications, additional cardholders, balance transfers or credit limit increases. HSBC has also published a notice about closing its Rewards credit cards, so it’s worth reading HSBC’s important notices page for the details that apply to your card.
If you rely on your HSBC card, it makes sense to plan ahead for when it closes, rather than waiting for the final notice. It is our understanding that you will, however, be able to continue to pay off any credit card debt even after the card has been closed.
Integrity – We tell you what we know and what we don’t, so you can plan with confidence.
Do You Need to Do Anything Right Now?
In most cases, no. Your repayments continue, and HSBC will contact you directly as the transition progresses.
Just be careful about scams! HSBC has warned customers to be suspicious of unexpected requests to move money or act urgently. If someone contacts you out of the blue about your HSBC account, hang up and contact HSBC using the details on its official website.
When It Might Be Worth Reviewing Your Options
You don’t have to switch, but it can be a good time to look at your finances if:
- You have more than one debt. If you’re juggling a personal loan, a credit card and other repayments, debt consolidation could simplify things into one repayment.
- You rely on your HSBC card. You may want a plan for what replaces it or how to pay it off.
- You’d prefer to choose your lender. Your loan is moving to a new servicer, and some people prefer to compare the market first.
- You want to borrow more. Additional borrowing is assessed by the lender you deal with, so it may be simpler to review your options in advance.
Empowerment – We help you take control of your finances with clarity, confidence and care.
Before You Switch: What To Check
If you’re thinking about refinancing or consolidating, it’s worth checking these first:
- Early repayment costs. Ask whether your current loan has any fees for paying it out early.
- Total cost, not just the repayment. A lower repayment over a longer term can still cost more in interest overall.
- Fees on the new loan. Compare establishment and ongoing fees.
- Your credit file. New applications can affect your credit score, so it’s worth understanding your position first. You can read more in our guide to your credit file.
We have also put together a Loan-Prep Checklist to help you pull together the information you’ll need. Contact us with code CHECKLIST25 to request your FREE copy.
Collaboration – We work alongside you to make the process smooth, supportive and stress-free.
How Stellify Can Help
Our brokers can review your current loans and cards, explain your options, and compare lenders to see whether consolidating or refinancing makes sense for you. Sometimes the answer is that staying put is the best choice, and we’ll tell you if that’s the case.
There are no upfront fees for our broking services.
HSBC Transition FAQs
Do I have to move my loan? No. Your loan is expected to transfer to Pepper Money automatically, subject to regulatory approval, and HSBC has said there are no fees for the transfer.
Will my interest rate change? HSBC has said your loan will continue under its existing terms, and you won’t be switched to Pepper Money’s advertised rates. Check HSBC’s notices and any letters you receive for your specific loan.
Can I still get a new HSBC card or personal loan? No. HSBC has stopped accepting new applications for its retail products.
Will refinancing affect my credit score? Applying for credit can cause a temporary dip, and managing a single repayment well can help over time. We can explain how it applies to your situation.
If you do have questions or concerns about how these changes impact you, contact HSBC and ask them directly.
Final Thoughts
HSBC’s exit is a big change, but there’s no need to panic. Unless HSBC have advised you differently, your loan and card continue for now, and there’s time to make a considered decision.
If you’d like to understand where you stand with other lenders and what your options are, we’re happy to talk it through. Book a time to chat here.
Dream It! Plan It! Stellify It!
Stellify is not affiliated with HSBC. Information current as at 30 September 2026 and based on HSBC’s published customer notices. Check HSBC’s important notices page for the latest.
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