Lloyds overdraft

mwarby

Col81 wrote: »

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.

I guess that would depend on the interest (if any) your paying on your debts your repaying via DMP. If the interest has been frozen on these debts, then clearing them with an interest bearing loan seems pretty crazy.

It might be worth looking at your budget and DMP again to assess
- How much are your debts now ?
- How much money do you have each month to repay ?
- Is DMP the best way of dealing with the debts(compared to DRO/IVA/bankruptcy)
- If DMP still looks like the best way, can you increase your payments (after taking into account all your expenses, including none monthly ones) to finish it quicker

Ben8282

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.

I am sure this is correct although if I log on to internet banking and click on 'increase your overdraft' on my Club Premier account which is an ancient account with an overdraft facility dating back to the 1980's, I get ridiculous affordability questions and a note that the application will be subject to a full credit check.
The last thing you want is for them to do a credit check which I am sure they will do if you apply for a loan or credit card. And 'purpose of loan: to repay DMP' is 100% sure to get a decline!
You are very lucky indeed to be offered this overdraft facility. Keep it; definitely keep it but. DO NOT USE IT

superM

Long time ago my brother had a Lloyd's current account which he used really well. He had dafaults on his credit report but was offered overdraft and credit card based on how well he managed his account.

He then starting asking for more credit from Lloyd's at the end they have done proper credit search and noticed defaults. That was end of his credit from Lloyd's. I think they placed credit policy decline mark on his account.

Might be best if you go and ask if you have any loan offer on your account. Rathe just applying online and full credit check being done.

Col81_2

Going into Lloyds at 12pm I will report back what they say going to see if they would offer me a loan or credit card and at what rates. If I can get a low rate loan I will clear dmp and start to re build my credit score

starM

Hi Col81,. So what did Lloyd's say?

Ben8282

starM wrote: »

Hi Col81,. So what did Lloyd's say?

From the absence of anything from the OP guessing it was a decline.

20aday

Surely the OP would've been better trying to use part of their monthly wages to chip away at their DMP?

When I was on one, many years ago, the rule was that I wasn't to apply for any form of credit... and when I had a Lloyds TSB bank account back then it was a Basic account with a Visa Debit card that could only be used to withdraw money from one of the LBG ATMs.