Credit Score - obtaining an overdraft for no credit users

Hi all,

I’m a foreigner living in the UK, holding +£40k in my Monzo account, pretty stable expenses and revenue.
My employer pays my mobile phone expenses and I used to live in a house share (all bills included).
For 12 months, i had no bills.

I can’t get an overdraft to create a credit score. Which seems something people are doing here, comparing to France, where I used to live.
And I don’t want to get those products from other banks.

Why don’t you find a way for giving an overdraft for people with enough saving?
For example, you can even give an overdraft equal to a “blocked” amount of money (you hold £1000 and allow me an overdraft of the same amount).

Any ideas ?


Not sure why you need an overdraft if you have £40k in your account. Nevertheless Monzo seem to be relatively conservative in who they choose to lend to so I’m not sure there is a quick solution if you want a Monzo overdraft and have not yet built much of a UK credit history.

I’d suggest you take steps to improve your credit score and then try again in a year. Standard approaches to this and checks you should make are listed here.

There are also some newer approaches coming onto the market. For example,

1 Like

I think he explained, to build credit score. An overdraft would show some form of credit. Having credit improves credit scores generally. Catch 22 is you need a good score to get said credit.

If someone blocked off £1k of his, there is no risk to the bank and he gets £1k lending on his credit file for others to see.

That’s what I got from his post.

Anyway: sadly Monzo don’t do this and I would doubt that they would any time soon.

1 Like

If you have 40k in the bank (your losing money with it in a cash account fyi), then why don’t you just do this yourself?

Savings doesn’t show that you can actually pay people you owe money to. building a credit score seem to go to the idea that it partially shows you can actually pay debts on time. Since you never have, no one knows if you actually pay people back.

1 Like

Maybe I’m the only person reading it this way, but I get the impression he doesn’t require an overdraft for the funds, but for the credit improvement.


I think you’re right. I think I misread his/her post first time round.

Nevertheless I’ve never seen getting an overdraft promoted as a way of initially building a credit history. There are several other ways, as noted in my earlier post. He should have no difficulty getting a credit builder card, for example.


Thanks for your answers all.
But what about the idea of blocking a certain amount of money and giving the same amount as an overdraft? So people can leverage this to improve their credit score.
This is a no risk option for Monzo and will help solvable people

I’m in the same boat. I’ve moved to England for university (but I have a British passport so I’m not an international student). Even though I haven’t properly lived in the UK before then, I have had an address and opened an account with RBS when I was 16. I also had a Monzo prepaid card during their Beta. I’ve spent a lot on that card for many years and I feel Monzo can get a good picture of my finances, but I can’t get an overdraft. I understand Monzo is playing it safe with who they offer credit to at the moment, but I would have thought I would be offered one since I’ve been using it for so long and have proved to be financially sound. It’s not only Monzo though, RBS won’t give me an overdraft either (which isn’t too surprising because I only use that card to send money to Monzo).

I’ve checked my credit score using Experian and it says I have an excellent score. I really want an overdraft soon because I’m moving into a new place in September and want to set up bills on my Monzo card to track my spending, but I’d need an overdraft so it can be paid without having to get my flat mates to send me the money beforehand. I feel like I’m forced to get a credit card and use that instead, which is disappointing because I’m loyal to Monzo and I thought they would offer me something since I have a long history and (according to Experian) a good credit score.

A credit card might be a better option for you, especially if it is free.

Oh, and to this, I would say, ‘Don’t be.’ Your loyalty is unlikely to be repaid.

If Monzo offer you something which is useful now, then use them. fI you hope that they might offer something useful at some time in the future, then use them at some time in the future. The world is too full of people who are loyal to brands, just ask those who were loyal to Northern Rock.

1 Like

You have a good point. I’m just annoyed I have to use another bank which will be inferior to Monzo in my eyes, especially since Monzo has a solution to my problem but doesn’t want me to have it. I’m waiting for the Apple Card to launch, as that would meet my expectations of a bank/card and be similar to Monzo in the sense of ease and transparency. I’ve read rumours it’s coming to the UK quite soon. In the mean time, I guess I’ll have to save some money and put it aside in a pot and use that as a make shift overdraft when I need to start paying bills until either Monzo offers me something or the Apple Card is available.

I don’t know - I suppose I see a at least a couple of issues 1) would Monzo be allowed to do what you are suggesting? (essentially withholding your money). I wouldn’t be surprised if there are regulatory hurdles there; 2) How many people would it actually benefit? Whilst you are in a privileged position in that you have a large bank balance most people looking to improve their credit score probably wouldn’t have spare cash to put up as collateral.

You won’t need to put everything on the credit card. Just make a couple of transactions a month and pay off in full. After a few months you will have evidence on your credit history that you are a reliable borrower.


So it’s not inferior. It’s superior. At least in one respect.


Contact COPs :calling: I had a similar issue, Monzo :monzo: only ever do one credit check on your account when you open your current account . If you contact them and give them permission to perform another check they will see if they can approve you. :pray:

Please note if they don’t accept you this can have a negative impact on your score. I’m not saying you should do it only that you can

1 Like