Lloyds Bank has issued a warning to millions of customers about a £20 reward that some will be able to claim.

On Wednesday, October 15, the banking giant announced its latest credit card option, which “empowers people to build financial confidence and credit strength”.

The new credit card from Lloyds, named Advance, “is specifically designed for people who are new to credit and want to build credit confidence”, according to the bank.

Lloyds executives said seven out of 10 (70%) people aged between 18 and 34 understand the importance of a strong credit history for obtaining a mortgage, but nearly half (43%) have little or no understanding of what APR (a yearly rate that shows the total cost of borrowing money) means.

Advance offers access to a customised knowledge hub, no fees for purchases made abroad, one interest rate to “make Advance as simple as possible to understand”, and a £20 reward when customers keep their account up to date during the first six months.

Advance customers will gain access to Lloyds’ financial management tools, including Your Credit Score, a free credit checking service that allows customers to view their full credit report and receive personalised advice on how to improve or maintain their score.

Customers can also set personalised contactless card payment limits, freeze certain types of payments such as gambling, and utilise the Lloyds Benefit Calculator for support on Council Tax discounts, Universal Credit, home improvement grants and more.

To be eligible for an Advance card, customers must hold a personal bank account within the Lloyds Banking Group for at least three months.

Rich Napier, credit card managing director at Lloyds, stated: “Learning how to manage credit as early and as safely as possible, can make a huge difference to your future finances. 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. Our new Advance card helps build your score simply, giving you the tools to manage your borrowing responsibly and avoiding riskier lending, like payday loans.

“Getting your credit history right from the beginning will put you on a fantastic financial footing for the future. The earlier people get into the habit of borrowing wisely and safely, building a solid credit report at the same time, the stronger position they’ll be in – with credit history issues less likely to crop up in the future.”