Building Credit

Hi Monzo Gang,

Looking for some advice here as looking to buy a house in the next year and want my credit credit report to be ship shape ready for then.

Credit scores, confusing on every level so thought I would come here to ask some of you older people for advice. I’m good at managing money and keep tabs on my spending, but credit scores are something I’m not hugely involved in and my limited research has said getting a credit card is a good step in the right direction…

The problem I have is within Clear Score I’m ‘pre-approved’ for a number of cards, some being credit builders and others being reward based… I’m looking to build credit so the credit builders is the obvious choice, right? My question is will the credit builder actually improve my score more than the rewards card or is it just a marketing scheme and in fact will all cards build it the same?

Also, the cards within Clear Score that I’m pre-approve for they actually ‘good deals’ or should I look around and find some other cards with my own research?

Thanks gang, I look forward to hearing your expert knowledge :slight_smile:

Best regards,

First off all do a proper credit check on yourself and see how you stack up. If you have a good score then I wouldn’t go near a “credit building” card as the APR rate is ridiculously high.

If you need to go down that road then make small purchases and do not load to much up on the card.

Hi Jamie,

I believe there is no difference to credit score agencies. The credit builders are designed for people with a poor credit history, and generally have a higher APR.

Well youngster, ‘‘twas different when I was young. You didn’t buy a house coz a dinosaur would just squash it… :houses: :t_rex:

Ignore the score, it’s the report that lenders look at

If you have preaprovals already then ignore the credit builders. Pay off the full balance of any card at the end of the month. Don’t apply for any other credit for 6 months before you go for your mortgage

If you have existing debts pay them down


Also look at which credit report agency your ideal mortgage lender is using, generally you can get a one off report of them for less than £5 (I can’t recall the exact amount)

I would personally like to see Monzo help their customers rebuild credit. Allow small overdrafts and with the launch of their lending facility’s tbey have a great opportunity to make a mark on the UK lending market. Apple Card will come to the UK it’s only a matter of time and i am hearing from colleagues in the US they are accepting everyone to build a mass customer base. I would to see monzo get a product out in the UK market first

This ^

As long as your score isn’t really low you’ll be fine.

The bank uses the house as collateral and it is my understanding that they work out how much they’ll lend based on your disposable income. So once all your bills, other debts and living expenses have been deducted from your monthly income they’ll use this to decide if you can afford the repayments or not. If yes, you’ll be approved if not, you’ll need a longer payment term or to find a cheaper house.