Downgrade Account - What impact ?

nuriel

Hi,

I have a Lloyds TSB Silver Account, paying £10/months for things I don't use. Is there any negative impact I should consider if I downgrade to a basic account ? For example are Silver accounts looked more favourably when looking for a loan or credit card limit extension ? Quid of the internal credit rating ?

Nuriel

kar999

I wouldnt worry about it. I doubt if it will impact on your credit score at all. I am going to downgrade my Gold to a basic Classic as they are about to start charging me £12.95pm for it from Oct 2. It was opened pre 2005 and hence eligible for a fee waiver (which inexplicably still applies post Oct2 for some cutomers but not others.)

I then intend to ditch Lloyds completely and switch to Nationwide where benefits like Travel insurance come free with their flexaccount.

Dont pay for something you dont need especially if you can get it for free!

dr_adidas01

kar999 wrote: »

I wouldnt worry about it. I doubt if it will impact on your credit score at all. I am going to downgrade my Gold to a basic Classic as they are about to start charging me £12.95pm for it from Oct 2. It was opened pre 2005 and hence eligible for a fee waiver (which inexplicably still applies post Oct2 for some cutomers but not others.)

I then intend to ditch Lloyds completely and switch to Nationwide where benefits like Travel insurance come free with their flexaccount.

Dont pay for something you dont need especially if you can get it for free!

That's provided they give you a flex account with full fat visa debit card and not a flex account with the cash card +.

If they give you the flex account with the cash card + paying in £750 a month still won't give you the free travel insurance, I know a few people who have been caught out on this because they were issued a cash card + and not there normal visa debot card.

It seems Nationwide are very picky about whom they give there full fat visa debit card too.

BugsyBrowne

dr_adidas01 wrote: »

That's provided they give you a flex account with full fat visa debit card and not a flex account with the cash card +.

If they give you the flex account with the cash card + paying in £750 a month still won't give you the free travel insurance, I know a few people who have been caught out on this because they were issued a cash card + and not there normal visa debot card.

It seems Nationwide are very picky about whom they give there full fat visa debit card too.

They are no different of being picking like any other bank.

If person A applys for a NW with a not so good credit history and give them a cash card doesn't mean they'e being picky.

kar999

I got the full fat Visa Card without them even checking my Equifax credit file (or at least leaving a seach record). Maybe they used another ratings agency,

I think the online application asked if I wanted a Visa debit card but I cant rememeber for sure.

I do however have a 20 year old savings account Ex-Staffordshire then Portman Building society with about £30 in it earning rockall so I was already known to them, but I hadn't used that account for the last 10 years.

BugsyBrowne

kar999 wrote: »

I got the full fat Visa Card without them even checking my Equifax credit file (or at least leaving a seach record). Maybe they used another ratings agency,

I think the online application asked if I wanted a Visa debit card but I cant rememeber for sure.

I do however have a 20 year old savings account Ex-Staffordshire then Portman Building society with about £30 in it earning rockall so I was already known to them, but I hadn't used that account for the last 10 years.

They did they would of used experian.

notrouble

The only difference is that you will be £10 per month better off.

whenIretire

I changed from the silver to the classic account this year and then added vantage to it as well so I could get interest on the balance. If you haven't already added vantage you might as well, it's only a small amount of interest but it all adds up.

Ben8282

Just a word of caution, not in any way specific to or aimed at LTSB.

When you downgrade things, they often turn against you. Make things more difficult for you. They often also assume that the only possible reason for downgrading is inability to afford whatever the fee for the original account was.

chanz4

just say you don't use the benefits

kar999

If you've got the maximum £5k then a interest from a basic classic converted to vantage will pay more than the benefits are worth factoring in the £120 fee p. annum you'd aslo pay for the added value silver account.

I'm converting my down from my current fee-waiver Gold when they start charging on Oct2 but already have the maximum 3 Vantage accounts so will be switching.

I wouldnt worry about banks treating you differently because of downgrading and whether they think you cant afford it. They are more concerned about their promoting of added value accounts becoming the next banking mis-selling hot topic. The FSA on Wednesday launched a crackdown on sales incentives across the industry and is undergoing a separate probe into Lloyds’ controls after uncovering serious flaws in the way the bank monitored staff pay. (ref commission based product selling)