Credit line

Would Monzo think about creating a lending system like Drafty for the poor credit applicants.
For example you apply for a credit line and say your excepted for £500.
A new pot would appear in your account that you can draw from as and when needed. So if i had emergency bills i could draw £80 from the pot till im next paid and then transfer it back.
Intrest charges would be applied when borrowing but only from what you use.
I understand some will say its the same as an overdraft but not all are eligable for overdrafts.

When i firsts thought of this it seemed a good idea now with others views i think maybe a not so much as it inevitability ends the same way.
A credit builder card would be better as one day id like a mortgage.

Isn’t that basically an overdraft though?

If you don’t have the credit record for an overdraft why would you qualify for this? Monzo do want to help people with low credit ratings but haven’t announced anything yet


In the past i couldn’t get an overdraft but i was accepted by Drafty for a credit line. Granted intrest rates are higher. But when your in a pickle and everyone says no what can you do?

100% agree. The last loan I took out was 59.9% over 3 years,whole pile of fun paying that back :cold_sweat:

I’m not a fan of drafty and credit lines, I think the entire intention is to trap you into a debt and repayment cycle. You could argue the same about overdrafts but that’s a longer debate :grin:

This is what Tom said recently


I know the feeling i was trapped with stupid amounts of loans which i ended up going into a DMP, I ended up clearing in 6 months approx 14k. But the effect it has on credit scores has effected me to no end. im debt free but its impossible to rebuild as no lender will touch you. Catch 22. Maybe the credit line is a bad idea but thought id see peoples thoughts on this.


Couldnt you try using Monzo’s new loan feature?

It works post purchase for some folks I think, so you could pay the interest over a few months for unexpected bills/ smaller bills maybe to pick up a better credit rating?

May cost you a few quid but its nice to be able to build up the credit score again.

(Only issue may be that Monzo only report to one CRA so youre credit building wont be as useful possibly??)

1 Like

Don’t think you’d qualify for that if you don’t qualify for an overdraft


Ahh ok my bad!

Didnt see any actual outlines on the criteria for either to be honest so unsure of all that and the terms to the apr

1 Like

A credit builder card would be good idea for Monzo customers, again eligibility is the grey area. The reason i first got a Mondo card was to get a hold on my finances.
When they became a bank the prepaid card became a bank.
I know there are builder cards out there that cost approx £10 pm.
Maybe a builder card would be better than a credit line

I Love the now Monzo account as it keeps things in check and shows spending.

Thankyou for your participation in this discussion its always good to see other peoples views.

If you want to build credit without taking on debt have you looked at ? Haven’t used it but like the idea


Ill have a look into this thank you.

1 Like

I think the nice thing about this, is that if you do have any financial crisis, your money isn’t unreachable as they can return it to you. Obviously not ideal if you have to withdraw early, but is an option if really needed.

Might as well manipulate a manipulative system! I think I’ll give it a go.

1 Like