I wanted to ask if I could get £8000 pounds out of the Monzo account and pay it back later as it is a master card??
It’s MasterCard debit, not credit so you need to have the funds to use upfront
So I wouldn’t be able to transact 8k from the account I would need to put the money into the account in order to take it out?
I would need to put the money into the account in order to take it out?
Unless they’ll give you a loan, then yes. If you want to withdraw £8,000, you’'l need £8,000 to withdraw.
How would I ask for a loan from them because I’m new to Monzo and I just got the card recently
Go to Account tab in the app and tap ‘Learn about loans.’
I thought monzo loans capped at £1000 and at a fairly high interest rate too (since they’re designed to be short term).
For something like 8k you’re much better off going on a price comparison site and seeing what rates you can get for a personal loan.
Loans have recently been expanded to higher amounts (max £15,000 I believe) with more competitive APR.
I can now get a £12,000 loan to pay off over 60 months at around 3.7% APR. (Not that I need a £12,000 loan mind).
3.7% is pretty damned good for that amount.
My account still says ‘we’re rolling out loans gradually’ so still a select few I guess.
Yeah I think they are still running the “responsible lending” angle - which is good and I agree with.
It looks like there are 4ish categories of loans (for me at least):
- £200 - 3 to 12 months repayment calendar - 18.7% APR;
- £1,500 - 12 to 24 months repayment calendar - 14.7% APR;
- £6,000 - 24 to 60 months repayment calendar - 9.3% APR;
- £12,000 - 60 months repayment - 3.7% APR
(these aren’t the upper limit of each category but you get the idea).
So it would be cheaper to borrow 12k and immediately pay 6k back than borrow 6k
That’s probably true of lots of loan companies but it’s more obvious when laid out like that…
Yes but if you needed £6,000 you wouldn’t seek £12,000 credit out (I guess
Monzo don’t appear to charge ERCs thought so that would be why it is possible (not sure if other companies do though).
If I needed 6k I’d put it on my tesco credit card at 0%
Hey Rianah, we’re a Mastercard debit card, not credit. if you’re eligible for a loan, it should show in your app
Whilst we’re here, any news on the progress of rolling loans out to more users
3.7% is on the higher side of the rates you can currently get. 2.9% is the current market leader
You can apply for a loan within the Monzo app - contact support or ask on here if you are unsure how to go about applying