Declined an overdraft with high credit score

Has Monzo rejected an overdraft application with high credit score? My Credit score with Experian is 970 and Transunion 690 and I got 25k overall credit limit across my credit cards. I got excellent credit score and always pay everything in full but Monzo keep rejecting my application saying my credit score is too low? Has anyone else experience that?

Your credit score, like all credit scores, is completely made up to sell credit score improvement products to gullible people


Perhaps your large existing credit availability is the reason why Monzo don’t want to offer you a loan?


Only Monzo know their criteria when looking at your credit score, doesn’t matter what made up numbers you see on your files as that’s purely what the credit agency work out.


Thanks for your replies. It’s just seems weird as I don’t know their lending criteria!

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For what it’s worth I had £100 with them and never used it so moved it down to £50, I can’t actually increase it back to £100 as they won’t offer it me again at the moment. As to why they won’t I’ve know idea other than it probably depends which way the wind is blowing :rofl:

Nothing at my end has changed other than I’ve got more savings and paid off bills quicker than usual


Nobody knows any banks lending criteria. If they revealed it you would be able to game the system.


While we don’t know the details, it is fair to say that Monzo’s criteria is on the conservative side. I think @tbutz is right and that your existing credit is the biggest negative factor for you in this case.

The one thing nobody has mentioned is employment status and salary, both of those would be important to the credit limit offered. It’d be especially tricky if salary isn’t paid into monzo

If you have £25000 of available credit why on earth do you need an overdraft facility on top of that?


An overdraft is probably there for when you calculate wrongly etc, more of a buffer, to use a credit card would require deliberate action


I have a similar profile to you but do have an overdraft, so my guess is it is something else such as salary and expenditure that they are looking at.

Do you run your Monzo account quite tightly and keep money elsewhere?

Actually I got 1k overdraft with Barclays but I don’t want to decrease it to 0 as I want Monzo first to give me one and then I will remove it

Last month I moved everything to Monzo. Still have other accounts open just in case

I don’t know if it helps but they didn’t offer me an overdraft until about 2-3 months after I CASSd and started using the account as my main

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Monzo must use open banking APIs in addition to your credit report. When I first opened my Monzo account I was offered a £1k overdraft. After adding my barclaycard to test out the credit card integration, my overdraft was revoked upon moving to the percentage based interest. My credit card balance is £0 because I almost never use it, but I suspect my available credit limit made Monzo anxious.

I personally don’t think I’ll ever be offered an overdraft from Monzo, where other banks after a soft check tell me they’ll offer me £2.5k without any pre-existing banking relationship. It’s quite frustrating but their risk appetite is clearly very low.

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It’s an absolute minefield.
My main account (Nationwide) has all my money paid in, all my D/D out and has a £200 overdraft at their 39% rate.
Monzo, very little money in the account, £200 overdraft at their 17% rate.
Starling, only used for holiday savings, £300 overdraft at their 15% rate.
Yes, these are only small amounts, but the only overdraft I have ever used is Nationwide.

My available credit is a bit lower than £25,000 but have never been rejected for any credit products in the last 20 odd years.

Maybe it’s not you, but them.

They only have a limited amount of overdrafts they can issue in total, and it matters how many they already issued and how much of them are getting used and are at risk of repayment.

If I were a bank, I wouldn’t be approving new overdrafts in the middle of a global pandemic.