Lloyds Bank has unveiled a new credit card designed to assist customers who are new to borrowing and looking to build their credit confidence from the ground up. The Advance card includes a £20 reward for maintaining a good repayment record during the first six months of account activity.
The initiative appears to target the growing number of young adults with limited financial literacy, offering not only a basic cash incentive but also access to personalised tools and educational content. The aim, according to Lloyds, is to promote healthy credit habits early on in a customer’s financial journey.
Helping New Borrowers Understand Credit
The Advance card is positioned as a practical option for individuals who may not have used credit before but hold an existing Lloyds Banking Group current account. To be eligible, customers must have had a personal account with the bank for at least three months.
One of the core features of the card is its simplicity. It offers a single interest rate with no foreign transaction fees for purchases made abroad, making it easier for users to track and understand their borrowing. According to Lloyds, the card also comes with access to Your Credit Score, a free tool offering a complete overview of a user’s credit report and personalised tips for improvement.
This is underpinned by a knowledge hub filled with jargon-free resources. These materials aim to demystify common financial terms, such as APR, which, according to the bank’s research, nearly half of 18 to 34-year-olds do not fully understand. By combining learning with responsible borrowing, Lloyds hopes to reduce the likelihood of users turning to high-risk options like payday loans.
Rewarding Responsible Habits and Building Long-Term Stability
The £20 reward is granted once the account has been kept up to date for six months—an incentive Lloyds describes as a “confidence booster” rather than a promotional gimmick. According to Rich Napier, Managing Director of Credit Cards at Lloyds Bank, the card is part of a broader strategy to lay the foundations for long-term financial stability.
“Building a solid credit record isn’t just about borrowing money – it’s about opening doors for your future,” Napier stated. “Building a solid credit record isn’t just about borrowing money – it’s about opening doors for your future. From renting a flat, to applying for a mortgage, your credit score plays an important role in the rates and terms you will be offered.”
Lloyds also offers cardholders access to its Benefit Calculator, which supports customers in identifying potential help with Council Tax, Universal Credit and other entitlements. Additional card controls allow users to limit contactless spending or freeze payments in categories such as gambling.
By packaging financial education with practical safeguards and incentives, the Advance card offers a cautious but structured path into the world of credit, reflecting a shift in how banks are engaging with a younger, less experienced demographic.
