The Lloyds Advance Credit Card is designed to help individuals build or repair their credit history with practical features. It offers a representative variable APR of 29.9%, and credit limits are capped at an example amount of £1,200, subject to individual assessment. Applicants must hold a Lloyds Bank current account for at least three months and have a minimum yearly income of £6,000. The card provides all users with one straightforward interest rate and charges no foreign transaction fees on purchases abroad. Notably, making all required payments on time within the first six months earns a £20 reward, credited directly to your balance.

How to Apply for the Lloyds Advance Credit Card

• Ensure you are at least 18, a UK resident for three years or more, and hold an active Lloyds current account for at least three months.
• Meet the minimum annual income requirement of £6,000 and have no recent bankruptcies, CCJs, or declined Lloyds credit card applications in the last 30 days.
• Use the eligibility checker on the provider’s website to get an estimate of your credit limit without impacting your credit score.
• If eligible, complete the application online or through the Lloyds Bank app if you are registered for online banking.
• Submit documentation as requested and wait for approval before proceeding to use your new card.

Key Pros of the Lloyds Advance Credit Card

This credit card stands out with no foreign exchange fees for overseas purchases, making it a good fit for travellers or online shoppers. The straightforward single interest rate helps users manage their finances easily. Additionally, the £20 reward for on-time payments within the first six months provides extra motivation to stay on top of your accounts while building positive credit habits.

Considerations & Cons

One significant drawback is the relatively high APR, which is common with credit builder cards. This means carrying over balances month to month can be costly. Additionally, the card does not support balance transfers or adding additional cardholders, limiting its flexibility compared to other options.

Our Verdict

For those aiming to establish or improve their credit score, the Lloyds Advance Credit Card is a worthwhile choice, particularly for Lloyds Bank customers. The flat interest rate and absence of international purchase fees enhance its appeal, especially combined with the manageable application process. However, users should be disciplined about repayments, given the high interest rate, and ensure it aligns with their financial goals before applying.