Bank of Scotland Advance: Fees and Eligibility

The Bank of Scotland Advance credit card is a card for spreading the cost of a large purchase over time. It is not a balance transfer card: Bank of Scotland states plainly that it does not offer balance transfers or the option to add additional cardholders with the Advance card¹. If moving an existing card debt is the goal, this is the wrong product, and the bank's own balance transfer cards are where that sits.

The Advance card adds two conditions of its own. To apply you must have a Lloyds Banking Group bank account that has been open for more than a year, and a yearly income of £6,000 or more¹. Those two conditions rule out a large share of applicants before credit scoring even begins.

The card sits inside the Bank of Scotland range. The bank's own site carries today's interest rates and fees for the card; this page covers how the product works, who can get it and how its charges are worked out.

What the Bank of Scotland Advance credit card is for

The Advance card is a straightforward borrowing card aimed at a purchase you want to pay off over a run of months rather than in one go. Bank of Scotland does not publish a single headline rate for it here, because the standard interest rates on the card are variable: they change in line with the base rate, or if the bank needs to change them for another reason¹. The bank's own product page carries the current figures.

That variability matters more than it sounds. A card marketed around a fixed monthly cost can still see its interest rate move, and the bank must write to you at least 60 days before it increases your rates, telling you why⁴. Promotional or non-standard rates you already hold are treated differently: those will not change and will continue until the end of the promotional offer⁴.

The Advance card is one of several in the range, and Bank of Scotland does not show you all of them at once. Instead of displaying all of the credit cards in its range, it shows you which ones you are eligible to apply for³. That is worth knowing before you start, because the card you had in mind may not be the one you are offered.

For anyone weighing up whether a card or a loan suits a large purchase, the two work differently: a card is a revolving limit you can reuse, a loan is a fixed sum repaid to a schedule. The site's comparison of credit cards and personal loans sets out where each one fits.

Balance transfers: what can be moved and how

The Advance card does not do balance transfers at all¹. On Bank of Scotland cards that do, the rules are specific about what can move.

You can transfer balances from most credit and store cards displaying the Mastercard, American Express or Visa logo, but not from loan companies, bank accounts or other Bank of Scotland credit cards⁵. The same restriction appears in the second-card rules: the bank does not accept balance transfers from other Bank of Scotland credit cards⁶. So consolidating two Bank of Scotland cards onto one is not possible through a transfer.

A transfer fee applies, and the bank sets the size of that fee on its own pages². Some credit cards allow a transfer from another credit or store card while charging a fee for doing so⁷. The fee is normally a percentage of the amount moved, so the cost scales with the size of the transfer rather than being a flat charge.

A balance transfer is not the same as a money transfer, and the two are easy to confuse. A money transfer lets you move money from your credit card to any of your own UK-based current accounts⁸. To make one you need a UK-based current account in your name and address⁹. Money transfers are not available on new credit cards, but you may become eligible once you have held the card for over three months¹⁰. The site explains the difference in more detail in balance transfer versus money transfer.

How repayments are allocated and what happens when a promotional rate ends

This is the part of a credit card that catches people out, and Bank of Scotland's rules are unusually explicit about it.

Payments go to the part of your balance with the highest interest rate first¹². That holds even if you have a lower promotional rate that is coming to an end: the bank will still clear the more expensive debt first¹³. The practical effect is that a balance on a promotional rate can sit untouched while you pay down a standard-rate purchase, and the promotional clock keeps running regardless.

Where several balances sit on the same interest rate, the order is more granular. Cash transactions and card purchases are paid off first, before any money transfers you have made⁸. Where balances are on introductory or promotional offers at the same rate, payments go towards the offer ending first⁸. Where there are multiple offers of the same rate and same balance type, payments usually pay off the oldest balance first, then fees, charges or payment protection insurance¹².

The full order runs as follows.

1. The highest-rate part of the balance
2. Overdue amounts
3. The minimum payment
4. Instalment plan payments
5. The rest of the main balance
6. The rest of the instalment plan balance
7. Amounts not yet on a statement¹²

If you are in persistent debt, the bank may apply your payments differently¹².

When a promotional rate ends, the standard interest rate at that time applies to the remaining balance¹³. Bank of Scotland says it will let you know in plenty of time before that happens⁵. On a money transfer, once the offer runs out your remaining balance is charged at your standard money transfer interest rate until repaid⁸, which you can confirm on your statements⁹.

Who can apply: credit scoring and eligibility checks

The eligibility bar for a Bank of Scotland credit card is set out in two places, and they do not say quite the same thing.

The bank's application guidance repeats the regular income requirement¹⁴. The Advance card adds its own two conditions on top: a Lloyds Banking Group bank account open for more than a year, and a yearly income of £6,000 or more¹.

When you apply, Bank of Scotland usually checks your credit history with a credit reference agency⁷. It uses a system called credit scoring for mortgages, current accounts, personal loans and credit cards¹⁵, drawing on three sources: your application form, credit reference agencies, and data the bank may already hold¹⁶. It primarily uses Experian, TransUnion and Equifax¹⁵, and will usually contact one or more of them as part of the assessment¹⁵.

A decline is not a judgement about you as a payer. Bank of Scotland says it does not mean it considers you a bad payer, just that past experience has suggested applicants in similar circumstances are more likely to experience payment problems¹⁵. You can appeal, and the bank will review any further supporting information you provide, though it cannot guarantee to reverse the decision¹⁵.

How your credit limit is set and changed

Your credit limit is the maximum amount you can borrow on your credit card¹⁷. It is usually based on your individual circumstances and credit score¹⁷, and on an assessment of your income and borrowing commitments, with the figure told to you after your application is accepted⁷. The inputs are the application you submit, information from a credit reference agency, and your history with the bank¹⁷. On the Advance card specifically, credit limits may vary subject to an assessment of your personal circumstances¹.

If you want a higher limit, you need at least six months of payment history on the account, and you will have to go through an eligibility check, so approval is not guaranteed¹⁷. The bank may complete a credit check to help it make a further lending decision¹⁸. After six months it can review your limit based on an assessment of your ability to pay the new amount⁷.

You can also go the other way. You can decrease your limit at any time after your card has been activated⁷, and you can usually request a decrease whenever you like¹⁷. Bank of Scotland notes that doing so could affect your credit score¹⁸. If you would rather not be offered increases at all, you can change your preferences by calling the bank¹⁸.

The bank will not raise your limit without your consent: if you do not accept an offer, it simply expires¹⁷. If it decides to lower your limit, it updates its systems with the new amount straight away and sends a letter telling you about the change as soon as possible afterwards¹⁷. Reasons it gives for lowering a limit include:

• missed payments on group products
• adverse credit file information such as missed payments, defaults or CCJs
• high levels of total outstanding debt
• exceeding pre-agreed limits such as bank overdrafts
• taking out lots of new credit within a short period¹⁷

It may also lower the amount you can spend to help you manage your debt¹⁹.

If you exceed your limit, your account may be blocked and you will need to pay the excess amount before, or along with, your next monthly payment¹⁰.

Applying for the card and checking eligibility first

Bank of Scotland's own advice is to check before you apply: answer a few questions to see if you are likely to be approved⁷. Its checker is called One Check²⁰, and the bank says using it will not affect your credit score³. It shows your estimated credit limit up front and tells you whether you are pre-approved for any cards³. There is no obligation to apply afterwards²¹.

The checker asks for your addresses for the last 3 years, your annual income and employment status, the account number and sort code of your main current account, and details of other spending commitments⁷. A full application asks for more: current UK address details and your previous address if you have moved in the past three years, phone number and email address, annual income before tax, main bank account number and sort code, and details of any non-Bank of Scotland credit or store cards if you want to transfer a balance¹⁴.

You can apply online and over the phone, though some balance transfer offers are available exclusively online¹⁴. To apply in the app you must be registered for online banking; once in, you select Apply then Credit cards³. If you are unable to apply online for a first Classic Account, you can book an appointment at a local branch²², and the same branch route exists for other products.

If you already hold a Bank of Scotland credit card, you can apply for a second one¹⁰, but not within 60 days of opening your first⁶, and the application is subject to a full credit and affordability check⁶. You can also swap an existing card for a different one through online banking, by selecting the Apply icon, then Credit cards, then Swap an existing card²³. Be aware that swapping may mean losing your existing card benefits and offers⁷, and any remaining balances form part of your new card's balance at your new card rate, so paying those off on your existing card first avoids carrying them across²³.

Managing the card in the app and online

Day to day, the card is run through the Bank of Scotland app and online banking. Credit card customers can continue to view existing card details in the app and use them to make purchases online or over the phone²⁴. If your card is damaged or not working, you can order a replacement through the same service²⁴.

Payments can be made in several ways:

• by Direct Debit
• through the Bank of Scotland app or online banking
• from another bank or building society
• by UK debit card via the app or online banking
• by phone
• in branch
• by cheque through the post¹²

Setting a Direct Debit for at least the minimum payment is the simplest way to avoid a late payment fee, since the fee is triggered when the minimum payment does not reach the bank by the due date on your statement¹³.

The app also handles the wider group's accounts. If you hold Lloyds or Halifax accounts, you can manage them in the Bank of Scotland app and online banking: making payments including to your credit card, ordering, replacing or freezing cards, transferring money between accounts, adjusting or overpaying a mortgage, renewing a savings account, changing personal details, and accessing help and support²⁵.

There is no tie-in on Bank of Scotland credit cards. You can close your credit card account at any time, but you must clear any outstanding balance first⁷. If you are thinking about closing a card after clearing it, the site's page on closing old accounts covers what that does to your credit file.

If you struggle to repay or spot a problem

Missing a payment has three consequences, and Bank of Scotland sets them out consistently across its pages: you may have to pay fees, lose any promotional offers you have, and it could damage your credit score⁵. Missing a payment could also affect your ability to borrow in future¹². If you hold an instalment plan, one missed payment returns that month's payment amount to your credit card balance at the standard interest rate, and two missed payments in a row cancel the plan and return the remaining plan value to the card balance²⁶.

There is a specific protection for people who have been paying a lot of interest without reducing the debt. If you have paid more in interest, fees and charges than on your balance for 36 months, Bank of Scotland says it can help you¹⁹. This sits alongside the persistent debt rules that apply across the industry, which the site explains in persistent credit card debt rules.

If you see a credit card transaction you do not recognise and the company that took the payment cannot help, contact the bank to raise a payment dispute²⁶. For purchases, most credit card transactions are covered by Section 75 of the Consumer Credit Act 1974²⁷, which makes the card issuer jointly liable with the retailer on qualifying purchases. The site's guide to Section 75 explains the thresholds and exclusions.

Where debt has become unmanageable, free and impartial help is available. In Scotland, for most types of debt you can apply to court or the First-tier Tribunal (Housing and Property Chamber) for time to pay, which suspends the arrestment procedure, as long as applications for time to pay have not already been made²⁸. The site's guide to credit card debt in Scotland sets out the options in more detail, and help with credit card debt covers the UK-wide routes.