LTSB Credit Policy Decline.....

paulmcerlean

It is just stupid that using your ARRANGED overdraft periodically marks your account as CREDIT DECLINE.

They are just shooting themselves in the foot.

izools

Arranged or otherwise it demonstrates poor budgeting and / or marginal income:expenditure.

In my case it is the latter, as I am supporting a flat by myself on a meagre salary. I have a four figure monthly turnover (about £1150) and only use my small £150 OD for a few days a month, but the fact remains I wouldn't have to if my budget wasn't so tight.

simax

izools wrote: »

She also told me to put my savings back in my current account (this was when I went in on Thursday) over the weekend as their system does it's monthly account scoring this time of the month. Good girl :beer:

So if we can avoid using the OD then the CPD marker should drop off after 3-6 months

Am I right in thinking the internal scoring takes place around the 22nd of every month?

FWIW, I wouldn't expect the CPD marker to fall off anytime soon. I got mine when the account was opened, 14 months ago! :eek:

Rupert_Bear

paulmcerlean wrote: »

It is just stupid that using your ARRANGED overdraft periodically marks your account as CREDIT DECLINE.

They are just shooting themselves in the foot.

Sorry do not accept this. I have an overdraft facility of about £8k. I use the overdraft on a regular basis and in fact I applied for a 25k loan from them and it was agreed on line a few weeks ago.

Also being an ex employee of Lloyds I remember we valued customers more who used their overdraft facilities rather than someone who kept their account in credit.

Basically the information the OP was given was based on pure speculation by a member of staff. I say this because it was always a big, big secret on how the internal stores were arrived at.

Cash_Flow

simax wrote: »

Am I right in thinking the internal scoring takes place around the 22nd of every month?

FWIW, I wouldn't expect the CPD marker to fall off anytime soon. I got mine when the account was opened, 14 months ago! :eek:

Yep you got it in one.

jambosans

Rupert_Bear wrote: »

Basically the information the OP was given was based on pure speculation by a member of staff. I say this because it was always a big, big secret on how the internal stores were arrived at.

So why would make a statement like this?

Rupert_Bear wrote: »

Also being an ex employee of Lloyds I remember we valued customers more who used their overdraft facilities rather than someone who kept their account in credit.

For all we know Lloyds TSB's lending criteria is designed to minimise the amount of lending to customer's with the titles "Lord", "Lady" and "HRH". It's hard to assume LTSB value custom with borrowing more when you don't know numbers, and the criteria under which its assessed.

There's no denying that lending is a big part of LTSB's income, however interest gained on credit balances paying below the base rate is also a big earner. Overdrafts carry a certain degree of risk, as there's a major difference between a maxed out £2k overdraft and a £150 overdraft used for 3 or 4 days in a month - the former may pose a higher risk of default. The point I'm trying to make is: I disagree - LTSB need a deposit base just as much as a lending (and being a rather conservative bank I would imagine deposits are just as important).

blargwork

iereboy wrote: »

LLoyds system is indeed flawed.

CPD will show on many VERY well managed accounts.

Staff are confused about it as well as it makes no sense.

The stupid thing is that if you close all your accounts down and then open up another one, it can get rid of the CPD .....crazy system I know.

If you apply for something involving a successful credit check does that update the system? E.g. say you are credit decline but then time means Experian think you are now clean, will that update Lloyds after the check?

Rupert_Bear

jambosans wrote: »

So why would make a statement like this?



For all we know Lloyds TSB's lending criteria is designed to minimise the amount of lending to customer's with the titles "Lord", "Lady" and "HRH". It's hard to assume LTSB value custom with borrowing more when you don't know numbers, and the criteria under which its assessed.

There's no denying that lending is a big part of LTSB's income, however interest gained on credit balances paying below the base rate is also a big earner. Overdrafts carry a certain degree of risk, as there's a major difference between a maxed out £2k overdraft and a £150 overdraft used for 3 or 4 days in a month - the former may pose a higher risk of default. The point I'm trying to make is: I disagree - LTSB need a deposit base just as much as a lending (and being a rather conservative bank I would imagine deposits are just as important).

We will agree to disagree because you do not know what you are talking about.

BigAndy_79

sillystudent wrote: »

I don't know anything about Lloyds' system but tbh it sounds like that might well be the problem - not being on the electoral roll is a massive hinderance to getting any kind of credit - in fact it's almost impossible to get a credit card, personal loan, overdraft etc. without being 'on the roll.'

I have had no problem at all in the past, to be honest. I have opened numerous bank accounts, three credit cards & have just secured a mortgage. I have done this with Ulster Bank, Alliance & Leicester, Nationwide and Halifax, so I don't think it is a real necessity in the way you suggest, to be honest....!

simax

Cash_Flow wrote: »

Yep you got it in one.

Will have a peek online tomorrow then, even though I'm not expecting any changes...