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Halifax Crash - Will it affect Credit Card Application?

Just hearing on the news about the Halifax crash and the Lloyds TSB take over talks that are currently taking place.

There is general opinion on the news that this will make borrowing money even harder than it already is.

Will this impact on Credit Cards also?

I am about the apply for a CC with my current bank who happens to be Lloyds TSB.

Comments

  • Hi,

    The way I understand it, there is no Halifax "crash", and Halifax is not being "taken over". Lloyds TSB and Halifax are merging, probably to strengthen their position on the current financial market.

    However, in the current financial climate, I think all banks will be tightening their lending criteria. On the other hand, loans and credit cards are a way of making money for banks, so they will have to keep on approving them as a way of income...
  • 5AM
    5AM Posts: 45 Forumite
    gerrynimo wrote: »
    Hi,

    The way I understand it, there is no Halifax "crash", and Halifax is not being "taken over". Lloyds TSB and Halifax are merging, probably to strengthen their position on the current financial market.

    However, in the current financial climate, I think all banks will be tightening their lending criteria. On the other hand, loans and credit cards are a way of making money for banks, so they will have to keep on approving them as a way of income...

    Hi thanks for this.

    Yes I appreciate Halifax has not totally crashed but is on the verge and Lloyds are talking of merging in order to save the struggling bank.

    No confirmation of the merge yet though. BBC news just confirmed HBOS and Lloyds have another meeting aranged for tonight to confirm merger details.
  • Kavanne
    Kavanne Posts: 5,093 Forumite
    Might they link together under one name as I have issues with TSB and I couldn't deal with their customer service. Or will they stay as separate entities? If they link i might switch away anyway
    Kavanne
    Nuns! Nuns! Reverse!

    'I do my job, do you do yours?'

  • So what happens to people on a DMP who have LTSB as their creditors and who now have a basic bank account with the HBOS? Advisable to switch banks quick I guess!!
  • lolarentt
    lolarentt Posts: 1,020 Forumite
    Kavanne wrote: »
    Might they link together under one name as I have issues with TSB and I couldn't deal with their customer service. Or will they stay as separate entities? If they link i might switch away anyway

    I've banked with BoS for many years, who used to be brilliant on customer service, but since they took over Halifax the service has been absolutley dismal (I'd use stronger language if we were face to face) as they adopted the Halifax methods and systems for private personal accounts, leaving the old Rolls Royce BoS service for the business end.

    So don't hold out any hopes of good service as a result of anything coming in from the HBOS side of a new grouping!!
  • NickX
    NickX Posts: 3,046 Forumite
    gerrynimo wrote: »
    The way I understand it, there is no Halifax "crash", and Halifax is not being "taken over". Lloyds TSB and Halifax are merging, probably to strengthen their position on the current financial market.

    Well they are calling it a merger, but its certainly not a 50:50 venture. The liquidity position of HBOS has not been stated, but I have a feeling it doesn't make for particularly pleasant reading.

    Interestingly it has been reported on the stoozing site that only today they have withdrawn their backing for the Norwich and Peterborough Credit Card.

    There are also reports of Nationwide taking over the Cheshire and Derbyshire building societies in way of another recovery package.

    I suspect that there are more of these "mergers" to come yet.
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