You can use the Lloyds Mastercard for paying for everyday items, everything from new clothes, furniture and even for nights out. The reason why people choose this card is that it is safer than carrying around cash, and it is widely accepted in retailers throughout the UK and beyond.

If you end up facing an unexpected emergency, such as your vehicle breaking down, and you need to make a quick payment, the Lloyds Mastercard can be particularly useful. It has a lot of benefits in this respect, and many people keep there card just for emergencies, instead of using it for day to day purchases.

Who are Lloyds Mastercard?

Lloyds Bank offers different credit cards, including a balance transfer credit card, large purchase credit card and an everyday spending credit card. Lloyds Bank is a registered financial service provider in the UK.

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Lloyds Bank Platinum Low Rate Credit Card Overview

IssuerLloyds Bank
Annual/monthly fees£0
Balance transfers9.94%
Balance transfer fee5%
Purchases interest-free periodUp to 56 days
Cash advances9.94%
Min credit limit£0
Max credit limitNot specified
Additional cards available1

Lloyds Bank Platinum Low Rate Credit Card Fees and Charges

Annual/monthly fees£0
Minimum monthly payment2.5% or £5 (whichever is greater) or the total of any interest, default fees and charges plus 1% of the outstanding balance.
Balance transfer fee5%
Foreign usage charge (EU)2.95%
Foreign usage charge (rest of world)2.95%
Cash advance fee5% (min. £0)
Late payment fee£12
Duplicate statement fee£0
Exceeding limit fee£0
Additional card fee£0
Replacement card fee£0
Dormancy fee£0

Lloyds Bank Platinum Low Rate Credit Card Application Requirements

Minimum Age18
AvailabilityAvailable to new customers

Credit Card Tips

In this content, we will look at the Lloyds Mastercard in more detail, including:

  • Why this might not be the right option for you, and how to decide whether to choose this or an alternative.
  • The pros and cons of taking out a credit card
  • Other alternatives that you might be worth considering
  • A number of tips to help you manage your Lloyds Mastercard, if you decide this is the best option

How to budget

If you decide to take out a Lloyds Mastercard, it is imperative that you learn how to budget. This means paying off your credit card balance, as soon as the bill arrives.

It can lead to overspending

When you know you don’t need to pay upfront, it is natural to spend more than you usually would. If your spending habits are already quite poor, the Lloyds Mastercard or any credit card, may make your spending habits worse, and you could end up facing financial difficulties.

Are you able to afford the credit card balance?

We will delve into this in a bit more detail, but if you are looking to build up your credit rating, you should use your credit card, but make sure you pay it off quickly when the balance is due.

If you are able to pay your credit card bill without issues each month, the credit card can be extremely useful. However, in cases were your earnings do not meet with the money you are spending on your credit card, this you could end up running into some trouble.

How to manage your Lloyds Mastercard without facing debt problems

The main focus of taking out a credit card like the Lloyds Mastercard is usually to improve your credit score, and this is an important aspect for being able to secure loans and gain access to more favourable credit rates.

Your credit score is made up of a range of factors, including credit history, which can be just as bad if you don’t have any credit at all!

If your credit score is good, you will be more likely to get accepted for credit for big purchases, such as buying furniture for your house or go for an expensive holiday abroad. In order to do this, you need to be really careful with your credit card management.

These are some of the rules and guidelines to help you manage your credit card well, and to avoid getting into debt.

  • Although it can be tempting to have a few credit cards, it is better to just have one.
  • You should aim to completely clear off your Lloyds Mastercard balance each month. If you do this, you will be able to improve your credit score much more quickly. A good credit score reflects well when you are looking for credit. It shows you are reliable and will make lenders feel comfortable to offer you credit.
  • Don’t just get a credit card for the free offers. Make sure it’s a good fit for your financial needs.
  • Don’t max out your Lloyds Mastercard.

Other options to the Lloyds Mastercard

If you have read through the information regarding credit cards, and you would prefer to try and alternative instead, there are other options.

One such option which is available to you, is to get a ‘prepaid credit card’ instead. A prepaid card offers you a highly effective way to help you build up your credit score, which will show lenders that you are able to manage money effectively. You can only spend what you have, so there is no danger of overspending.

Why choose a prepaid credit card?

If you have never heard of prepaid cards, you should know that credit cards are basically cards which have been pre-loaded with funds that you can spend. When you have spare money, you just load up your prepaid credit card, and use this to purchase your goods. The good thing is that prepaid credit cards are accepted in the same way as regular credit cards. You don’t need to worry about these being accepted or your choices being limited.

Advantages of prepaid credit cards:

  • These are ideal for people who are looking to build their credit score, but without making it difficult to manage your finances.
  • Can help you stick to a budget.
  • You can carry these around instead of cash, and it is easy to use them in different retailers.
  • Safer to carry your card than cash.
  • You can track your money but quicker and easier.

Plus, if you feel uncomfortable about the thought of providing your credit card number when you are making online purchases, the prepaid card can give you some extra security.

Can you rely on a debit card?

If you already have a bank account, you are highly likely to have a debt card too. A debit card will be linked to your bank account and you can only use this if you have money in your account. If your bank account is empty, so is your debit card!

You have the option of using your debit card and you can use these in the same places as your credit cards are accepted. There is also the option of the prepaid debit card, which works in much the same way as a prepaid credit card. These can be used by anyone, but they are particularly useful for teaching teenagers how to spend carefully and manage their finances well.

Is it possible to improve your credit score without a credit card?

You might think you should get a credit card, but it is perfectly acceptable not to have one. We live in a time where electronic payments are commonplace and are taken everywhere, you don’t need a credit card to make payments. You can easily just use your debit card.

As long as you keep making payments to your bills and do this on time, you will build up your credit score, even if it takes some time. In doing this, you will have access to a lot more credit, such as mortgages, credit cards etc. It is important to only use credit when you are able to manage it properly. Otherwise, you will end up affecting your credit score in a negative way.


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About the author

Scott Nelson

Scott Nelson is a financial services expert, with over 10 years’ experience in the industry, including 6 years in FCA regulated companies. Read more