Credit Rating

At the moment I use a credit card for all my monthly spending, and pay it off in full when due.

If I were to switch to using Monzo for all of my spending (in order to make use of the spending targets/categories), is this going to have a negative impact on my credit rating because I am no longer using a credit card on a regular basis?

No one can really answer this with certainty as it depends on the particular lender’s hidden criteria when looking at your credit file.

I would say that if you do prefer to use Monzo for purchases it probably wouldn’t hurt to use your credit card once a month maybe for some small purchase. Just speculation but I would guess a lender would rather see some small borrowing ticking over on your file than no use of credit whatsoever. Although if you didn’t use it at all I can’t see your credit scores falling off a cliff! It would probably have the tiniest of tiny impacts, so tiny that I would just use Monzo and ignore the credit card. (Personally).


Presumably once you have a good history of using credit responsibly then stopping using credit won’t suddenly make your score fall. You can put the odd purchase on your credit card once a month or so like @rarther said. :+1:t2:


I wouldn’t expect it to. Using the card isn’t a tremendous issue with these things. The fact that you’ve had it – and will presumably still hang onto it(?) – should mean that it doesn’t negatively impact your credit score. I think anyway.

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