We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Lloyds TSB Risk Band?

abercrombie
Posts: 78 Forumite
in Loans
Hello People 
I was just wondering if anyone had some sort of insight into the way the Lloyds TSB Risk Bands work?
I am wanting to get a loan as I have just moved and a lot of decorating and furnishing needs doing plus I have some other small debts and a £3000 overdraft (With Lloyds) that I want to pay off.
I have spoken to Lloyds about the possibility of a loan and they said at the moment I am a risk band three which apparently the woman said is good, however the system isn't offering me a loan at the moment possibly because I have been with the bank less than a year? Does this mean that once you're a Lloyds customer they only judge your credit worthiness by their internal score and length of time as a customer? If this is the case do I need my risk band to go higher? or how long do I need to have banked with them till I would generally become eligible for a loan?
Thanks in advance for your advice :T

I was just wondering if anyone had some sort of insight into the way the Lloyds TSB Risk Bands work?
I am wanting to get a loan as I have just moved and a lot of decorating and furnishing needs doing plus I have some other small debts and a £3000 overdraft (With Lloyds) that I want to pay off.
I have spoken to Lloyds about the possibility of a loan and they said at the moment I am a risk band three which apparently the woman said is good, however the system isn't offering me a loan at the moment possibly because I have been with the bank less than a year? Does this mean that once you're a Lloyds customer they only judge your credit worthiness by their internal score and length of time as a customer? If this is the case do I need my risk band to go higher? or how long do I need to have banked with them till I would generally become eligible for a loan?
Thanks in advance for your advice :T


0
Comments
-
Back in my LloydsTSB days the risk bands were 1-9.
1-3 (1 being exceptional, I would guess 1 in 40 customers were RB1)
Would be on voters roll,have a clean credit check,mandated salary, good account history and other products with the bank (ie mortgage, savings, investments) and a good previous borrowing history.
A good credit risk and normally would get a large loan.
4-6: Reasonable score. Normally salary mandated, account run to a reasonably good level. Usually on voters roll with an above average credit score and no major problems with past credit.
Loan to possibly max £5000 - £10000 at higher rate than headline.Other products especially mortgage would allow an appeal to central lending team for higher loan amounts.
7-9: Poor score. Customers probably not on voters roll, or have defaults/CCJs on credit file, or have previous bad lending history with bank. Also lack of salary received to account.
Loan unlikely except in exceptional cases. These being other products with the bank, especially mortgage or significant savings/investments.
Its been a few years since I left the bank but I understand the system still uses these risk bands and score.
The system will actually tell the bank's loan adviser a maximum monthly loan repayment amount permitted (Subject to an affordability check done by the adviser)
Hope that helps0 -
abercrombie wrote: »Hello People
I was just wondering if anyone had some sort of insight into the way the Lloyds TSB Risk Bands work?
I am wanting to get a loan as I have just moved and a lot of decorating and furnishing needs doing plus I have some other small debts and a £3000 overdraft (With Lloyds) that I want to pay off.
I have spoken to Lloyds about the possibility of a loan and they said at the moment I am a risk band three which apparently the woman said is good, however the system isn't offering me a loan at the moment possibly because I have been with the bank less than a year? Does this mean that once you're a Lloyds customer they only judge your credit worthiness by their internal score and length of time as a customer? If this is the case do I need my risk band to go higher? or how long do I need to have banked with them till I would generally become eligible for a loan?
Thanks in advance for your advice :T
Further to my previous post, I would say the main thing stopping you getting a loan is the short time you have been with the bank, and possibly your existing level and number of debts, all of which are used when accessing your "risk band".
Every customer is re-scored monthly and I have seen customers score £0 loan one month and £10000 the next, run your accounts as well as you can and hopefully you will meet their criteria in a little while!!0 -
dealer_wins wrote: »Further to my previous post, I would say the main thing stopping you getting a loan is the short time you have been with the bank, and possibly your existing level and number of debts, all of which are used when accessing your "risk band".
Every customer is re-scored monthly and I have seen customers score £0 loan one month and £10000 the next, run your accounts as well as you can and hopefully you will meet their criteria in a little while!!
Ive been offered lending and I have only been with them just over 3 months and had a personal call off the branch manager saying lloyds are ready to offer me lending and mentioned if I am interest in buying car etc.
The reason lloyds can't offer the OP a loan because they have a CPD marker on loans.0 -
BugsyBrowne wrote: »Ive been offered lending and I have only been with them just over 3 months and had a personal call off the branch manager saying lloyds are ready to offer me lending and mentioned if I am interest in buying car etc.
The reason lloyds can't offer the OP a loan because they have a CPD marker on loans.
Yep the Lloyds system can be a bit random sometimes. Im sure its just processing all the data but sometimes I think inside the Lloyds systems there is a roulette ball going round a wheel with YES NO YES NO segments LOL0 -
I was in my branch recently (Halifax) and the person said I should consider a loan to pay off my overdraft of £4000. I asked what the chances of getting a loan and she said she could do an internal scoring check there and then. It came up with 3 and she explained it would be 50/50 chance. She explained that the scoring was 1 - 5. As Lloyds are linked to Halifax I assume the grading is the same. I have been with the bank for 5 years.0
-
dealer_wins wrote: »Yep the Lloyds system can be a bit random sometimes. Im sure its just processing all the data but sometimes I think inside the Lloyds systems there is a roulette ball going round a wheel with YES NO YES NO segments LOL
Agree it's such a weird system compared to all other banks,but your right its like a roulette wheel.0 -
I was in my branch recently (Halifax) and the person said I should consider a loan to pay off my overdraft of £4000. I asked what the chances of getting a loan and she said she could do an internal scoring check there and then. It came up with 3 and she explained it would be 50/50 chance. She explained that the scoring was 1 - 5. As Lloyds are linked to Halifax I assume the grading is the same. I have been with the bank for 5 years.
Lloyds is 1-9 which I was a 3 at account opening then went to 5 and back to 4 weird.
But I will probably be about an 8 or 9 this month as I extended my OD by £2900 so not sure if this will lower my Internal score or not.0 -
BugsyBrowne wrote: »The reason lloyds can't offer the OP a loan because they have a CPD marker on loans.
What is a CPD?If you are not very careful, your possessions will possess you!
0 -
Credit policy decline indicatorCan I find out my credit score?You do not have a single credit score or rating. Different organisations take different information into account when working out your credit score and may have different scores for different products. (Kindly from Experian)0
-
Saints2011 wrote: »Credit policy decline indicator
Does that mean there is something negative on my credit file? I am subscribed to Equifax and it says I have a low score but there isn't anything bad on there such as CCJ's or Defaults? It says it's low because I don't have much credit?If you are not very careful, your possessions will possess you!
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.2K Banking & Borrowing
- 252.1K Reduce Debt & Boost Income
- 452.3K Spending & Discounts
- 240.7K Work, Benefits & Business
- 617K Mortgages, Homes & Bills
- 175.6K Life & Family
- 253.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards