Bank already approved card - what does this mean?

Malory

My bank, Lloyds, keeps nagging me to accept a credit card that they say I'm already approved for. I can't call them about an unrelated issue without the representative trying to get me sign up for a card, and I keep getting letters in the post. I don't want the card; I already have other credit cards, so I just tell the reps "no" and tear up the letters.

I am confused though, by what the bank means when they say I'm "already approved". The letters I receive are normal credit card applications, which ask for my work details, whether I own or rent, etc. If the bank has already approved me for the card, why would they need this information? Shouldn't they just send me the card if I ask for it? As I said, I'm not planning on applying myself, but there seems to be something wrong with the way this is represented.

rb10

Malory wrote: »

My bank, Lloyds, keeps nagging me to accept a credit card that they say I'm already approved for. I can't call them about an unrelated issue without the representative trying to get me sign up for a card, and I keep getting letters in the post. I don't want the card; I already have other credit cards, so I just tell the reps "no" and tear up the letters.

You need to ask not to receive postal or telephone marketing. You may be able to set this yourself through internet banking, or might have to phone up/go into a branch.

YorkshireBoy

rb10 wrote: »

You need to ask not to receive postal or telephone marketing. You may be able to set this yourself through internet banking, or might have to phone up/go into a branch.

With internet banking you only have the option to switch on or off:


Online offers
Offers by text message
Offers by e-mail


...which may be found under the 'change details' tab top right of the main screen.


Lloyds do tend to make different offers through different channels in my experience. What may be available online may not be available in branch or by post.


Personally I have everything but text messages switched on.


All Lloyds (and other banks') 'pre-approved' cards will carry the caveats "based on what we know about you" (eg salary and account management) and "providing your circumstances haven't changed recently" (eg your credit history, debt, etc) are the the same as those they saw on the last monthly CRA feed they took.


If you do go and change your preferences (as stated above) you may find they don't have a salary listed for you, and that's why they want this additional information.

BonkersBonkers

It means that they think you will be approved subject to a credit search. In other words a marketing ploy.

YorkshireBoy

BonkersBonkers wrote: »

It means that they think you will be approved subject to a credit search. In other words a marketing ploy.

In my experience, over several years, with Lloyds (2 cards obtained this way), and Halifax (4 cards obtained this way), no external credit search was ever made.


The only thing you won't find out until you formally accept their offer is the credit limit assigned (and APR).

shortcrust

BonkersBonkers wrote: »

It means that they think you will be approved subject to a credit search. In other words a marketing ploy.

Like YorkshireBoy, there was no credit search when I got a Halifax card this way. I think they offer these cards to people based on internal credit scores.

BonkersBonkers

I stand corrected then, I already have a Lloyds and Halifax card so I can't experiment with the system.

bengal-stripe

YorkshireBoy wrote: »

In my experience.......no external credit search was ever made.

That is my experience as well. Your bank will get feeds from the Credit Reference Agency. If nothing untoward shows up, you will be offered a pre-approved card. The offers are time-limited "if you apply not later than xxx date".

After all, six months later your credit rating might be shot to smithereens and you won't qualify any more for the pre-approved card.

Sabbathdei

This is exactly what happened to me recently, I got the "acceptance guaranteed" , time limited email from my bank (Santander) which I originally thought was a dodgy email ! But after doing some research I applied and received just before xmas. The credit limit is £1800 which might be low to some but after years of being a little bit "sub-prime" it was a revelation, so I also assume that it's due to internal scoring, and having been with them for almost a decade, perhaps a healthy dose of "we like you" !!

Aquamania

Malory wrote: »

My bank, Lloyds, keeps nagging me to accept a credit card that they say I'm already approved for. I can't call them about an unrelated issue without the representative trying to get me sign up for a card, and I keep getting letters in the post. I don't want the card; I already have other credit cards, so I just tell the reps "no" and tear up the letters.

I am confused though, by what the bank means when they say I'm "already approved". The letters I receive are normal credit card applications, which ask for my work details, whether I own or rent, etc. If the bank has already approved me for the card, why would they need this information? Shouldn't they just send me the card if I ask for it? As I said, I'm not planning on applying myself, but there seems to be something wrong with the way this is represented.

Lloyds offer their cards from various sources.
The cards they offer in the post are not from the same marketing source as the cards offered to you in bank.
(I found this out when I received a pre-approved card application in the post one morning only to be offered a pre-approved card in branch that afternoon with an even higher limit)
Maybe the letters you receive are just normal marketing of their cards, whilst the one you are offered personally in branch is, as you were informed, pre-approved.

Pre-approved means they have already approved you based on the information they already hold on you. You will only be rejected if the application form contains information contrary to the information they already have used used to pre-approve you.

Btw, if you ask them nicely in branch (or on the phone) when you are next offered the pre-approved card that you do not wish to be advised of such things in future, then they should mark your account so that you are no longer bothered by this marketing. Well it worked for me when I asked them

Frugalsod

I am debating switching cards. Though will apply for a Tesco card just to get club card points on groceries.