Credit Checks/Searches with Mondo - Mortgage


(Liam) #1

Hi All,

I am wondering with Mondo being on the MasterCard Platform if this is deemed as a credit card, and if this can show up on your credit file in anyway, from an active open account, to a soft or hard search?
Basically i am trying to secure a mortgage in the next 6 months and wondering if this will impact this in the tiniest way possible?

Thank you


(Adam) #2

Its a prepaid card and therefore no hard searches are preformed. Believe there is a soft search placed in line with KYC which only shows on the Equifax credit report.


(Liam) #3

Hi Adam,
Thank you for you super speedy reply! I just received notification of my card, and decided to proceed and the ap did advise me it would perform a soft search, which I believe is only visible to me, and not future credit outlets. So thats fantastic.
By using the card, I assume no more search would be carried out, as this is now similar to a Starbucks Top Up card in ‘Credit’ senses?
Am I correct?


(Terry) #4

I believe its just available to you and the credit agencies. I don’t believe other companies can see that there was a search done, or at least they can’t use it for any credit lending decisions :slight_smile:


(Adam) #5

soft searches are not visible to credit agencies. I regularly check all 3 of the credit reference agencies and only Equifax shows a search.


(Adam Kendrew) #7

An interesting question and it got me thinking…

When Mondo does become a bank…will alpha, beta and investor users retain the amount of time spent with the account? For example with Credit Expert it will show you how many credit accounts you have open and how long has been spent with each (as they say you need an average of 33 months to obtain a higher score). So will it go on as a ‘new account’ or retain the period under the prepaid card :thinking:?


(lee) #8

People worry to much about what equifax, experience or call credit score/rate you as.

Any bank will assess you on ability to repay, likelihood to default but overall how profitable they expect you to be. They fit that into their own target customer segments.

If you’ve got multiple missed payments and defaults 30 odd months won’t make that much difference.

If you fit in their risk profile and they reckon they can make some money off you a short history won’t necessarily be a bad thing (luma, Aqua, barclaycard initial etc!)


(james_e_bell) #9

I don’t believe the credit agencies will see your alpha/beta/investor card at all - the credit agencies do not normally track prepaid accounts afaik

The KYC performed for a prepaid card is related to anti money laundering I believe (e.g. the responsibility of your provider (in this case mondo) to know who you are to check no money laundering is occurring).


#10

I actually really like this question, and it makes a lot of sense. It will be interesting how Monzo plan to do this. I would assume it will be a new account starting the day you move over to the Current Account model, but it would be great if it started the day the £100 initial topup hit the pre-paid card.