refused lloyds tsb current account

fed_up_and_confused

have recently applied for basic lloyds tsb current account on line.

had letter advising me of sort code and account number and asking for me to take id into a branch, which i did. a couple of weeks later i had a letter saying that unofrtunately they were unable to offer me an account and mentioned credit score etc - enclosing leaflet with credit ref agencies details.

i was extremely concerned because have always run a very tight ship with my finances and believed that my credit score would be good.

anyhow ran an experian credit check (as used by lloyds) and it came back with a 999 rating - excellent and i also ran another random one and that came back 5* with the top score of 666.

i copied the report and wrote to lloyds saying that i was a bit confused as to why they had refused my application and asked for them to provide me with more information. today - 2 weeks later i received a letter just saying that they (direct account applications) could not deal with my request for a current account and if i still wanted an account to make an appointment to go into a branch and re-apply.

is there any way i can get them to tell me why i was rejected? although both credit reports came back excellent i am worried because in a couple of months i will probably be needing to apply for a mortgage and am already stressing about it - i have found it very embarrassing to be turned down for a current account!

thanks in advance for any help / advice

Bosie

fed_up_and_confused wrote: »

have recently applied for basic lloyds tsb current account on line.

had letter advising me of sort code and account number and asking for me to take id into a branch, which i did. a couple of weeks later i had a letter saying that unofrtunately they were unable to offer me an account and mentioned credit score etc - enclosing leaflet with credit ref agencies details.

i was extremely concerned because have always run a very tight ship with my finances and believed that my credit score would be good.

anyhow ran an experian credit check (as used by lloyds) and it came back with a 999 rating - excellent and i also ran another random one and that came back 5* with the top score of 666.

i copied the report and wrote to lloyds saying that i was a bit confused as to why they had refused my application and asked for them to provide me with more information. today - 2 weeks later i received a letter just saying that they (direct account applications) could not deal with my request for a current account and if i still wanted an account to make an appointment to go into a branch and re-apply.

is there any way i can get them to tell me why i was rejected? although both credit reports came back excellent i am worried because in a couple of months i will probably be needing to apply for a mortgage and am already stressing about it - i have found it very embarrassing to be turned down for a current account!

thanks in advance for any help / advice

Can I ask why you are applying for a Basic account with LTSB?
A basic account is usually for people with not so perfect credit history?
You could go in your local branch and maybe apply for their full current account - Classic?

Also, take credit scores from Credit Reference agencies with a pinch of salt.

pcombo

I applied for a lloyds account but got declined and they offered me the cash account and it all got open without physical ID being showed, All they did was send a prefilled application all i did was sign, few weeks later got everything back.

fed_up_and_confused

Bosie wrote: »

Can I ask why you are applying for a Basic account with LTSB?


Also, take credit scores from Credit Reference agencies with a pinch of salt.

thanks for your reply

oops shows i know nothing - when i said basic current account i meant one with no overdraft facility - just checked lloyds corresponance and it was a CLASSIC account that i have been refused.

i just wanted a current account with no overdraft with no links to my main 2 current accounts - held at barclays. - my dad has recently died BUT the solicitor acting as executor of the estate is dragging his heals - not paying any bills etc and i am looking after dads house and animals (horses, dogs, chickens etc) i am having to pay for essentials such as feed and thought that if i had a seperate account to put things through i could then forward statements etc to the solicitor and he would have no access to anyother of my financial info. in case you can't tell i do not trust or like the blumbering baffoon of a solicitor!


CREDIT SCORES - if you say take with a pinch of salt why is there so much hype about maintaining clean history?

thanks again

agrinnall

fed_up_and_confused wrote: »

CREDIT SCORES - if you say take with a pinch of salt why is there so much hype about maintaining clean history?

thanks again

It's the SCORE that's meaningless, not the credit history. Credit providers don't use the score, what they do is take the information on your credit history held by the agencies and put that through their own scoring systems. If CRAs provided credit then the score might be meaningful, but as it is it's just a way of getting you to pay more than you need to - £2 for a statutory report is all that's needed.

opinions4u

fed_up_and_confused wrote: »

CREDIT SCORES - if you say take with a pinch of salt why is there so much hype about maintaining clean history?

thanks again

a credit score provided by a company that doesn't offer the actual credit facility is useless to you.

Lenders have their own internal scoring which, as well as taking into account your payment record on your credit history, will also be weighted in other ways to suit the business need. For example LTSB may not want to offer as many 22 year olds living with parents a secondary current account but would be delighted to attract a 35 year old homeowner who is transferring their primary banking, salary and direct debits from a competitor.

So while Experian and the like can give you a guide as to how likely you are to be accepted for credit products, they cannot tell you who is most likely to accept you.

So save your money, don't pay for a subscription, pay your bills on time, keep on the voters roll and you'll be fine.

fed_up_and_confused

opinions4u wrote: »

a credit score provided by a company that doesn't offer the actual credit facility is useless to you.

Lenders have their own internal scoring which, as well as taking into account your payment record on your credit history, will also be weighted in other ways to suit the business need. For example LTSB may not want to offer as many 22 year olds living with parents a secondary current account but would be delighted to attract a 35 year old homeowner who is transferring their primary banking, salary and direct debits from a competitor.

So while Experian and the like can give you a guide as to how likely you are to be accepted for credit products, they cannot tell you who is most likely to accept you.

So save your money, don't pay for a subscription, pay your bills on time, keep on the voters roll and you'll be fine.

thankyou so much for this explanation - you have put my mind at ease - i just could not see why they would turn me down but if i am not what they want then so be it! although i still think that they should tell me why when i have specifically asked them why.

MoneySaverLog

fed_up_and_confused wrote: »

thankyou so much for this explanation - you have put my mind at ease - i just could not see why they would turn me down but if i am not what they want then so be it! although i still think that they should tell me why when i have specifically asked them why.

They wont tell you their scoring criteria because that will leave them open to fraud. But obviously everything you put on your application is there for a reason and will get scored in someway. Further it can be assumed you get points based on each answer and some answers are worth more points than others.

So been with a company 10 years instead of 6 months, plus more points. Own a house rather than rent again more points. At the end of the day the more points you have the better. There will be a cut off where they decide you are going to be a good customer or not and if your application was declined because of this they see you as a unprofitable or risky customer.