Lloyds TSB Internal Scoring

SparciaM

I just have a cc with them. I did have a savings account, but it pays less than my current account, so I closed it down. No point having it open if no money is going into it.

Extant

Any risk/evaluation system that works on scores of one to ten is bound to be shit.

Kavanne

BarclaysManager wrote: »

Any risk/evaluation system that works on scores of one to ten is bound to be shit.

Oh really? Why's that?

Extant

Kavanne wrote: »

Oh really? Why's that?

Because it's either going to be full of generalizations or just plain misleading.

There are people who, on consideration, could be given a huge overdraft, but you wouldn't give a loan (for a basic example: good credit turn over, but inconsistent).

Then there are people who you would give a large loan, but at an average to high interest rate (someone with a good history with the bank and a business relationship, but a history of default 5 years ago).

So how do you accurately assign someone a number? If you assign someone a number and then base product offerings around that, you're risking a loss by extending a possible inappropriate product. If you assign someone a number and then you DON'T base your product offerings around that, you're going to end up misleading staff and customers - why can customer 1 have X when he's a 10, but customer 2 can't when he's a 10 too?

A scale of 1 to 100 would be more useful, probably.

MABLE

Kavanne wrote: »

Oh really? Why's that?

Because Barclays did not think of it first. Now theres a thought.............:rotfl: :rotfl:

xelaine88x

I have a student account with lloyds tsb and went in today to put my overdraft up. I was told that their internal scoring was based on the way you manage your account with them, ie making payments on time and having cash regularly deposited into the account. I was told i have a score of 3 which she said was good, but still refused to put my overdraft up as i have "taken too much credit off them in the last 6 months" :rolleyes:

Like you said, it could maybe just be because you haven't had the account long so you haven't built up much of a history with them

Extant

MABLE wrote: »

Because Barclays did not think of it first. Now theres a thought.............:rotfl: :rotfl:

:rolleyes:

Yeah, ours just gives you the limits of what you can do, all on one nice screen. So you can show the customer your screen and they can see everything you can do for them, from current accounts to whether or not they have pre-approved mortgage limits and credit cards. Then you can just click and go straight to an application.

That is in no way more useful than just a plain number. Oh no.

SparciaM

Well an update on this.

I went back in and asked if my score had changed. The lady advised that it was still a 6 and to come back in Jan 22nd!!

I asked if there was any way to improve the score, by opening other products, paying more money in, using debit card and she said not really as it's based on many factors of how an account is run. She did say that a minimum of £500 which is Lloyds min credit for having a bank account with the T&Cs is needed. When she checked she saw my credits for the last 6 months ranging from £1000 min, to £4000 last month. So the turnover is very good as the account is never less than £200 in credit.

I asked how to close the account, she asked why and I said that come March, I wont be depositing the min £500 and so wont be within the T&Cs of the account and I said as there is no way to write to lending to explain my situation I don't need an account with Lloyds. She gave me a closure form and told to bring in with card and stuff when I wish to close.

So I guess I'll wait until next year, have closed a couple of cc's and then apply with another bank. For the meantime I'll be moving my DDs and SOs back to First Direct.

savagej

It is not just based on your relationship with LTSB.

It is a composite score from all of the information they hold and a score "fed" to them monthly by Experian, so if Experian are providing the wrong information or are slow in updating the information the score will not reflect your financial status and as I said it is not a true internal score.

If you dont beleive me ask one of their managers.

SparciaM

savagej, every person I spoke to at Lloyds including 3 managers said that none of is externally scored. It's all done in house. They opened up a current account in error (which I'm thinking is another reason why they would decline), but they said that cc's, c/a with Lloyds are externally scored if you're 6 and above and internally scored if 5 or below. Yet you need to be a 5 or below to open an account.

Pretty much sounds like, there is no rhyme or reason for the scoring at all, as most other banks have things you can do to improve upon it. I'm not going to bother anymore, as I can get better banking elsewhere. Just thought it would be easier converting an existing bank account.

Plus my external score is fine, no adverse or problems at all.