Hi,
I been to LTSB today to check if I qualify for a Credit card. They said it should be fine because I am on no. 3 credit risk according to there system. They advised me to come back on Monday beacsue one of their system was down.
Can anyone advise how this credit risk system works and will they do a credit check?
At prsent I have a LTSB Current Accounts with 1k averdraf and the account was opened March this year.
Thanks
MS
Hi star. I also have an account with this scummy bank. Their risk bands run from 1 to 9. 1 is excellent and 9 is beyond bad. So 3 is pretty good. They will probably credit check you when you apply. What's your Experian report looking like? How have you operated your LTSB account so far?
Let us know how it goes.
Remember you can also apply for their card online (or over the phone). You can do it right now if you want.
Thanks for the reply.
As far as I can see my account is running fine. I have 7 DDs and always have over 1k in my LTSB Account.
I have no adverse infor on my credit report e.g. arrears, defaults etc. At present I have a Barclays Account, Next & Capital One Classic Card.
I have been living in the UK for less 3 yeras? Not sure if that will make any difference.
SM
I'm surprised the LTSB have not said, "by the way you're eligible for a credit card" to you.
I'd say you have an excellent shot at getting the CC. Also, when you apply the credit check they will do will be a soft one probably and won't show up to other lenders. A definite plus!
On a separate note, I am interested in a Next account and a Capital One Classic. Were either of those hard to get? Did you have other credit on your CRA when you got accepted for those? And also what sort of limits did you get?
Thanks and good luck!
Thanks for the reply.
I applied for Capital One Classic card around 3 months ago and got the card with limit 400. At that time I only had Lloyds & Barclays Current Accounts showing on my credit report. I will be getting my 4th statement next month so will see if my credit limit increases.
Next gave me credit limit of 600 but they did ask for proof of address and took 4 wks to process the application.
I think Capital One card was more easier to get.
Good Luck - SM
Hi,
I been to LTSB today to check if I qualify for a Credit card. They said it should be fine because I am on no. 3 credit risk according to there system. They advised me to come back on Monday beacsue one of their system was down.
Can anyone advise how this credit risk system works and will they do a credit check?
At prsent I have a LTSB Current Accounts with 1k averdraf and the account was opened March this year.
Thanks
MS
All banks operate their own internal risk scoring as you've discovered. It should be pointed out that these are in no way connected to what is colloquially known as your credit rating for purposes of credit.
Banks base their own scoring on time with bank, whether salary is paid in or not, other accounts with them, regular debits/credits taking place etc, average balance, active DD's/SO's, overdraft usage etc.
External credit checks look at far more factors concentrating on your address, employment, credit available, used credit, payment history, current debt, recent applications etc
This is why when starting out with credit cards/loans it's better to approach your own bank first as you already have a 'relationship'.
All banks operate their own internal risk scoring as you've discovered. It should be pointed out that these are in no way connected to what is colloquially known as your credit rating for purposes of credit.
Banks base their own scoring on time with bank, whether salary is paid in or not, other accounts with them, regular debits/credits taking place etc, average balance, active DD's/SO's, overdraft usage etc.
External credit checks look at far more factors concentrating on your address, employment, credit available, used credit, payment history, current debt, recent applications etc
This is why when starting out with credit cards/loans it's better to approach your own bank first as you already have a 'relationship'.
External credit checks do not really look at your employment. How could they when the CRAs don't know or report anything about your employment?
OP: apply for the LTSB card now online through your internet banking.
External credit checks do not really look at your employment. How could they when the CRAs don't know or report anything about your employment?
OP: apply for the LTSB card now online through your internet banking.
Yes they do, being employed or not is a significant factor when trying to obtain credit !
CRA's can't see your employment, but the lender certainley can, hence why it's on the application and that will help them come to a decision on whether to accept or decline. It's all part of the scoring process.
You can be a risk band 3 and still not qualify for a credit card.
You say that you have not been in the UK for 3 years - is that because you are not a UK citizen or for some other reason?
With credit risk being tightened this could well mean a referral to a central lending team.
CRA's can't see your employment, but the lender certainley can, hence why it's on the application and that will help them come to a decision on whether to accept or decline. .
No they can't. They have to just take your word for it. They don't know that what you've written on the application form re your employment is actually true.
OP: I think your chances are excellent. This is why: I opened a current account with HSBC 3 months ago. I am not on the Electoral roll and I have no credit history at all. A few days ago HSBC approved me for a credit card and a loan. Both applications did get "referred" but within 12 hours of the applications, both accounts had been approved. The credit card came with a limit of 3100 and an APR of around 15%. My internal score with HSBC is pretty high, as is yours with LTSB. So I'd be surprised if they turned you down. You've been with your bank longer than I've been with mine plus you already have one credit card (that I presume you run properly) reporting to your CRAs. Go for it.
No they can't. They have to just take your word for it. They don't know that what you've written on the application form re your employment is actually true.
Talk about pedantic - Yes they can if they so wish as they can ask for proof of employment at anytime before making a decision or are you advocating submitting a false and fraudulent application telling them you're employed when you're not ?
Talk about pedantic - Yes they can if they so wish as they can ask for proof of employment at anytime before making a decision or are you advocating submitting a false and fraudulent application telling them you're employed when you're not ?
Personally I'd have no motivation to lie on mine as I'm in well-paid employment, thanks. On the other hand, I'd guess that plenty of people do lie on their applications.
OP: I think your chances are excellent. This is why: I opened a current account with HSBC 3 months ago. I am not on the Electoral roll and I have no credit history at all. A few days ago HSBC approved me for a credit card and a loan. Both applications did get "referred" but within 12 hours of the applications, both accounts had been approved. The credit card came with a limit of 3100 and an APR of around 15%. My internal score with HSBC is pretty high, as is yours with LTSB. So I'd be surprised if they turned you down. You've been with your bank longer than I've been with mine plus you already have one credit card (that I presume you run properly) reporting to your CRAs. Go for it.
So because you were fortunate in getting a card everyone else will be will they ? You've a lot to learn !
3 is not considered a high score with Lloyds and guarantees absolutely nothing (as has already been advised) just an excellent score will not guarantee anything.
You have no better idea of whether the OP will be accepted or not as I or anyone else does here. We don't make the decisions !
All decisions are unique based on the criteria used and not based on what somebody else might have got.
Gotta love the negativity!! :)
Also, since LTSB score from 1 (the best) to 9, then 3 is a pretty good score.
There was a branch system which was having some updates added on Saturday which limited some branch application facilities, new credit card applications being one of them. A credit search will be actioned on your application, pay no attention to your risk band as this has nothing to do with your external credit file, it just means that it is worth while the branch offering you the facility. Nothing is being tightened because of the credit crunch when it comes to everyday banking, overdrafts, loans credit cards are just as available today as they were this time last year- don't let the media scare you into thinking otherwise. Enjoy your life and don't worry.
Personally I'd have no motivation to lie on mine as I'm in well-paid employment, thanks. On the other hand, I'd guess that plenty of people do .
About 10% lie on their applications.
So because you were fortunate in getting a card everyone else will be will they ? You've a lot to learn !
3 is not considered a high score with Lloyds and guarantees absolutely nothing (as has already been advised) just an excellent score will not guarantee anything.
You have no better idea of whether the OP will be accepted or not as I or anyone else does here. We don't make the decisions !
All decisions are unique based on the criteria used and not based on what somebody else might have got.
By the way if the OP applies for the card and gets declined, what has been lost? Plus there would seem to be a decent chance she will be accepted anyway.... Chill, baby, chill.
:beer: I'm so chilled i'm :rotfl: at you !
Bitter ? ? At no time have I suggested the OP not to apply, just answered his/her question wheras your sole purpose seems to be to take the thread off-topic.
Your so-called first class education really hasn't taught you much has it.
There was a branch system which was having some updates added on Saturday which limited some branch application facilities, new credit card applications being one of them. A credit search will be actioned on your application, pay no attention to your risk band as this has nothing to do with your external credit file, it just means that it is worth while the branch offering you the facility. Nothing is being tightened because of the credit crunch when it comes to everyday banking, overdrafts, loans credit cards are just as available today as they were this time last year- don't let the media scare you into thinking otherwise. Enjoy your life and don't worry.
Risk band will be taken into account in that the OP's account conduct with LTSB is one of the deciding factors in assessing the application. Other deciding factors being external credit check, affordability etc etc
:beer: I'm so chilled i'm :rotfl: at you !
Bitter ? ? At no time have I suggested the OP not to apply, just answered his/her question wheras your sole purpose seems to be to take the thread off-topic.
Your so-called first class education really hasn't taught you much has it.
I rest my case.:eek:
I rest my case.:eek:
You never had one ;) !
For someone who applied for their very first credit card a mere few days and based on some of the comments you've been making you seem to have a remarkable 'knowledge' of how the finacial industry works ! You should be advising Martin !
You should be advising Martin !
I am. In fact I'm Martin's pimp.:money:
External credit checks do not really look at your employment. How could they when the CRAs don't know or report anything about your employment?An 'external' search looks at the files of Fraud Prevention Agencies as well as Credit Reference Agencies.
Whenever you apply for credit the details you enter (for such things as employer name, time with employer, employer telephone number, position held, salary, etc...amongst many other things) are shared with Fraud Prevention Agencies.
The details you provide on your next application are compared with those you provided last time.
Next time you're completing a credit application, read the privacy statement. ;)
An 'external' search looks at the files of Fraud Prevention Agencies as well as Credit Reference Agencies.
Whenever you apply for credit the details you enter (for such things as employer name, time with employer, employer telephone number, position held, salary, etc...amongst many other things) are shared with Fraud Prevention Agencies.
The details you provide on your next application are compared with those you provided last time.
Next time you're completing a credit application, read the privacy statement. ;)
So as long as people keep their lies consistent, they're fine.
Yes they do, being employed or not is a significant factor when trying to obtain credit !
CRA's can't see your employment, but the lender certainley can, hence why it's on the application and that will help them come to a decision on whether to accept or decline. It's all part of the scoring process.
The lender cant actually see via a credit report if you are employed but exel is correct in that you may have to prove it!
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