LTSB Credit Card

starM

Hi,

I been to LTSB today to check if I qualify for a Credit card. They said it should be fine because I am on no. 3 credit risk according to there system. They advised me to come back on Monday beacsue one of their system was down.

Can anyone advise how this credit risk system works and will they do a credit check?

At prsent I have a LTSB Current Accounts with 1k averdraf and the account was opened March this year.

Thanks
MS

moneysavingallday

Hi star. I also have an account with this scummy bank. Their risk bands run from 1 to 9. 1 is excellent and 9 is beyond bad. So 3 is pretty good. They will probably credit check you when you apply. What's your Experian report looking like? How have you operated your LTSB account so far?

Let us know how it goes.

Remember you can also apply for their card online (or over the phone). You can do it right now if you want.

starM

Thanks for the reply.

As far as I can see my account is running fine. I have 7 DDs and always have over 1k in my LTSB Account.

I have no adverse infor on my credit report e.g. arrears, defaults etc. At present I have a Barclays Account, Next & Capital One Classic Card.

I have been living in the UK for less 3 yeras? Not sure if that will make any difference.

SM

moneysavingallday

I'm surprised the LTSB have not said, "by the way you're eligible for a credit card" to you.

I'd say you have an excellent shot at getting the CC. Also, when you apply the credit check they will do will be a soft one probably and won't show up to other lenders. A definite plus!

On a separate note, I am interested in a Next account and a Capital One Classic. Were either of those hard to get? Did you have other credit on your CRA when you got accepted for those? And also what sort of limits did you get?

Thanks and good luck!

starM

Thanks for the reply.

I applied for Capital One Classic card around 3 months ago and got the card with limit £400. At that time I only had Lloyds & Barclays Current Accounts showing on my credit report. I will be getting my 4th statement next month so will see if my credit limit increases.

Next gave me credit limit of £600 but they did ask for proof of address and took 4 wks to process the application.

I think Capital One card was more easier to get.

Good Luck - SM

exel1966

starM wrote: »

Hi,

I been to LTSB today to check if I qualify for a Credit card. They said it should be fine because I am on no. 3 credit risk according to there system. They advised me to come back on Monday beacsue one of their system was down.

Can anyone advise how this credit risk system works and will they do a credit check?

At prsent I have a LTSB Current Accounts with 1k averdraf and the account was opened March this year.

Thanks
MS

All banks operate their own internal risk scoring as you've discovered. It should be pointed out that these are in no way connected to what is colloquially known as your credit rating for purposes of credit.
Banks base their own scoring on time with bank, whether salary is paid in or not, other accounts with them, regular debits/credits taking place etc, average balance, active DD's/SO's, overdraft usage etc.
External credit checks look at far more factors concentrating on your address, employment, credit available, used credit, payment history, current debt, recent applications etc

This is why when starting out with credit cards/loans it's better to approach your own bank first as you already have a 'relationship'.

moneysavingallday

exel1966 wrote: »

All banks operate their own internal risk scoring as you've discovered. It should be pointed out that these are in no way connected to what is colloquially known as your credit rating for purposes of credit.
Banks base their own scoring on time with bank, whether salary is paid in or not, other accounts with them, regular debits/credits taking place etc, average balance, active DD's/SO's, overdraft usage etc.
External credit checks look at far more factors concentrating on your address, employment, credit available, used credit, payment history, current debt, recent applications etc

This is why when starting out with credit cards/loans it's better to approach your own bank first as you already have a 'relationship'.

External credit checks do not really look at your employment. How could they when the CRAs don't know or report anything about your employment?

OP: apply for the LTSB card now online through your internet banking.

exel1966

moneysavingallday wrote: »

External credit checks do not really look at your employment. How could they when the CRAs don't know or report anything about your employment?

OP: apply for the LTSB card now online through your internet banking.

Yes they do, being employed or not is a significant factor when trying to obtain credit !
CRA's can't see your employment, but the lender certainley can, hence why it's on the application and that will help them come to a decision on whether to accept or decline. It's all part of the scoring process.

jonesMUFCforever

You can be a risk band 3 and still not qualify for a credit card.
You say that you have not been in the UK for 3 years - is that because you are not a UK citizen or for some other reason?
With credit risk being tightened this could well mean a referral to a central lending team.

moneysavingallday

exel1966 wrote: »

CRA's can't see your employment, but the lender certainley can, hence why it's on the application and that will help them come to a decision on whether to accept or decline. .

No they can't. They have to just take your word for it. They don't know that what you've written on the application form re your employment is actually true.

moneysavingallday

OP: I think your chances are excellent. This is why: I opened a current account with HSBC 3 months ago. I am not on the Electoral roll and I have no credit history at all. A few days ago HSBC approved me for a credit card and a loan. Both applications did get "referred" but within 12 hours of the applications, both accounts had been approved. The credit card came with a limit of £3100 and an APR of around 15%. My internal score with HSBC is pretty high, as is yours with LTSB. So I'd be surprised if they turned you down. You've been with your bank longer than I've been with mine plus you already have one credit card (that I presume you run properly) reporting to your CRAs. Go for it.