Lloyds overdraft

Col81_2

Hi, I am currently in a debt management plan with stepchange, my credit score is 350 i bank with lloyds. I have upgraded to club lloyds and when I went in the bank they have offered me a £4000 overdraft!!! How can this be? Does this me I would qualify for their loans or credit cards? Seems too good to be true when everybody else turns me away. I put between £2000 - £4000 a month in wages into the account

bigadaj

It would suggest that lloyds credit checking information leaves something to be desired, maybe because of the way it is reported or which providers they use.

It would almost certainly be against the terms of you debt management plan to utilise this facility, I'd contact lloyds if I were you and ask it to be removed.

Col81_2

The bank said my credit with them was good? Odd

bigadaj

Col81 wrote: »

The bank said my credit with them was good? Odd

Well the fact you're in a dmp would suggest your credit isn't great.

You've been lucky to be given the club lloyds, I'd avoid pushing things too far if it were me, but it's up to you at the end of the day.

starM

I think this has been offered to you based on Lloyd's internal score. They have not done a credit check in you if they did they would have known of your debt management plan.

PeacefulWaters

starM wrote: »

I think this has been offered to you based on Lloyd's internal score. They have not done a credit check in you if they did they would have known of your debt management plan.

Correct. The account relationship has been assessed, not the wider credit file.

The OP should avoid using the facility.

jonesMUFCforever

The box showing the overdraft facility is an 'invitation to treat' ie a potential facility subject to a credit check.
This check should mean the overdraft facility will be declined but the OP should still be able to keep the Club Lloyds account.

Col81_2

They have given me the £4000 overdraft it is ready to use. That's why it doesn't make sense I presume a credit card or loan would be declined. The bank said I am a customer with a good rating

SnowTiger

Col81 wrote: »

They have given me the £4000 overdraft it is ready to use. That's why it doesn't make sense I presume a credit card or loan would be declined. The bank said I am a customer with a good rating

Probably based (largely) on the way you've handed your account.

I guess paying £2,000 to £4,000 monthly in to your account has a baring on it.

Your bank knows more about your income, outgoings and how much spare cash you have than other lenders.

MABLE

Col81 wrote: »

They have given me the £4000 overdraft it is ready to use. That's why it doesn't make sense I presume a credit card or loan would be declined. The bank said I am a customer with a good rating

I have a £10,000 overdraft facility with Lloyds but for me the interest is about 18%. When I use it I ensure a credit is paid in by the end of the day to avoid any charges. Based on what you say Lloyds are certainly not acting as a responsible lender and I am surprised as you are the facility has been granted. Hopefully like me you will use it wisely.

Col81_2

I am presuming the bank has decided themselves I am credit worthy. I have been with them 5 years and have never gone overdrawn and have a healthy salary. The bank manager asked me if I wanted a £500 overdraft and then said actually you can have £4000 and I will sort it now. Next thing it's done. I was wondering if I could get a loan because if I could I could then clear my debt management plan and be in a lot better position.