Got my overdraft offer yesterday and asked for the amount I wanted (a decent amount!) and was accepted instantly. This put me in a happy place.
This shows me (it’s a psychological thing) they appreciate my excellent credit rating and value me as a customer! I like banks that give me what I want, in seconds, no fuss. I’ve been with FD over 20 years and will never leave. Opened Starling and Monzo within a few days of each other and one thing I loved about Starling was the huge overdraft they instantly offered me. I chose a limit at a fifth of what I was offered. That’s still there on a slider if ever I want that much. That limit is more than many get offered with a credit card! That put me in a happy place with Starling. That’s now my number 2 a/c after FD. I closed Santander for Starling.
Why does being offered an overdraft put me in a happy place? It’s there if I want to use it. I have a large amount of credit always available to me, 3 main banks, several credit cards … I almost hardly ever pay interest. Not hoping to sound smug, but someone with an excellent credit rating rarely causes a problem for banks or credit card companies, they know you’ll borrow and pay back. They make their money from those who borrow money they can’t afford to pay back.
Monzo giving me instantly, what I want, when I want it, has gained loyalty from me! Alongside FD and Starling, now a bank I will use. When it was Pre-Pay card, I rarely used (pre-pay card psychologically traumatic for me - pre-pay cards are for those not credit worthy!) when Monzo had no overdraft facility, I rarely used, waiting for full facilities. I’ve now got everything I want - will close one of my other accounts - TSB.
I’m happy with the charges. You know what it would cost. Monzo have to make money! If one doesn’t abuse the overdraft facility, the charges are not prohibitive. I like to have an overdraft there for if I want to use it. The if is the important bit.
I like FD, Starling and now Monzo. My 3 banks I use.
No, I don’t mean that useless number that the three main ratings agency use. The term credit rating is a broad term, used widely to mean how the particular lender rates you. You’ve heard of a AAA I presume.
@scottishsunrise I’m sorry to say this (genuinely) but …you do sound a bit smug. By your own admission you already have loads of credit that you don’t need, I’m actually not clear why you need more?
Of course I’m happy you got what you wanted, just not sure why you’re even insisting on it, or is it just because ?
As a side discussion I find the idea of giving people massive amounts of credit questionable. As an example, in my case I have a credit card with a limit of 12k. That’s one of several with others at various limits around 6k. I could easily go on a binge and end getting myself in serious trouble, all that needs to happen is an unexpected change in circumstances e.g. loosing my job.
I would like to see lenders NOT offering people who already have access to huge amounts of credit more. It’s just as irresponsible as lending to someone who can’t manage their finances imho.
I haven’t applied for an overdraft. I don’t need it and don’t believe in collecting credit for the sake of it.
I doubt you would go on a binge with your credit cards should something unfortunate happen. That’s not how you roll is it, you’re sensible with your money and with your credit. That’s why the institutions that gave you it, gave you it
I think credit needs to be tightened up for the thousands out there who think it’s ok to spend other people’s money then not pay it back. I might be wrong, but I’m sure I read in the media sometime a while ago that they have/are doing this.
I appreciate your points and your opinion. Thank you.
It is, but I was pointing out that I was fully aware that credit scores which the credit reference agencies sell to those that think it means something, is entirely different to a credit rating given when a lender asses you with their internal processes.
I would like to agree and say people with loads of credit available to them know how to handle money and not suddenly ‘binge’ on it.
However I was once in that exact scenario and then 2008 there was a series of unfortunate events (personally and over the country) that made me use that available credit for my assumed ‘temporary’ situation that went on for for 18 months. This had many effects both mentally and physically that I would say, 10 years later, it still has effects.
Though I believe I am stronger and wiser for it, I’m trying to explain that it can easily happen to the best of us without warning. Even if you think it can’t or won’t, you have no idea what the future holds that is out of your control.
Interestingly, Co-op Bank just gave me a £1,500 overdraft - and they’re quite strict with their lending.
Monzo gave me £500. Would be very interested to know the rough workings out in how they come to the figure.
I don’t need a large overdraft, I rarely use it and when I do it’s less than £100 and it’s paid off quick. I was reopening a Co-op account and thought I’d give a grand and a half a go kind of just to see if I’d get it or what I’d get compared to Monzo.
