Full bank credit reporting (not scoring)


#1

Do we know yet if, come launch Monzo will be reporting our accounts (those without overdrafts) to the credit reference agencies ?

I ask as my current legacy bank reserve the right to close the account if you open a new one elsewhere (I’m assuming they are using CRAs for this and aren’t also say looking at debit card transactions and transfers)


(Alex Sherwood) #2

As far as I know, all we know at the moment is that Monzo shouldn’t need to do a credit check on you, in order for you to open a current account which isn’t what you’re asking about obviously.

Just to keep everything linked together, your question was also asked here, a few days ago but we’ve not heard back from Monzo yet -

That seems pretty harsh, I’m guessing you signed up for an account with an incentive to switch of some kind then? Out of interest, which bank & account do you have?


#3

No it’s a basic account with Nationwide (had credit issues a few years ago). They restrict these to one per person, as supposedly they aren’t profitable. I actually have 2 for budgeting, as they dropped the restriction for a few months while changing t&cs

I hope in a few years to get a mortgage and they are best hope until credit file clears at 6 year mark. In order to keep them onside I’d switch 1 account (probably not via switch service though)


(Alex Sherwood) #4

I eventually found their current account T’s & C’s (which I had to open in Internet Explorer, not Chrome :grimacing:) & having skim read them, I can’t see any mention that you shouldn’t open a current account with another bank?

Based on your description, it sounds like they might mean that you can only open one of their current accounts at once?

tell that to everyone paying them unplanned overdraft fees :wink:


(Matt) #6

To my knowledge, basic account’s don’t normally have any unplanned overdraft fees and it supposedly pretty hard to get one overdrawn.


(Alex Sherwood) #7

I can’t find any Nationwide current accounts in those T’s & C’s that don’t come with the option of an overdraft :stuck_out_tongue: but either way, fees are a bit off topic in this thread, I just thought I’d mention it :slight_smile:

Edit actually, there’s FlexBasic. Thanks Matt!


#8

from http://www.nationwide.co.uk/products/current-accounts/flexbasic/apply#tab:Howtoapply

To be eligible for FlexBasic
you must be 18 years old or over
you don’t qualify for one of our other current accounts
you don’t have a UK bank account elsewhere, or
you are bankrupt

from http://www.nationwide.co.uk/~/media/MainSite/documents/products/current-accounts/flexbasic/flexbasic-terms-conditions.pdf

  1. We may close your account by telling you in writing at least two months before we close it where: (a) there have been no transactions on your account for at least 24 consecutive months; or (b) you are no longer legally resident in the EEA; or © you have access to another UK account, (with us or with another UK provider and which has the same basic features as a FlexBasic account) which was opened after you opened your account with us.

#9

So a question for Monzo - will the full accounts without overdraft be reported to the CRAs ?

this is not

  • What effect will Monzo have on my credit ‘score’
  • What scores will Monzo need for account or overdraft
  • How Monzo will use data they get from CRAs
  • Eligibility for overdraft in general

(Gareth) #10

Wouldn’t it would be a moot point - the T&Cs would give them the option (not definite action) to close the account, regardless of what Monzo reports. The CRAs list bills and contracts which NW could cross-reference, so if you have a mobile contract or insurance not being paid from the NW account then the obvious question is where is the Direct Debit going?

IMO, I’d assume the bank would rather keep you than lose you and would at worst offer to upgrade you to FlexAccount (the overdraft is optional). Or they may take no action (I’ve found one forum post offsite where they said they had 2 major bank basic accounts inc. NW). Closing the account is usually a last step.


#11

Agree that as per T&Cs it is a somewhat moot point, but if Nationwide don’t know about the account it’s much less likely to trigger the term. I would be surprised if Nationwide were prepared to go to much effort in terms of cross checking you describe(not least due to not all accounts being reported everywhere), but a notification from a CRA about a new current account is much more obvious

While I’m not aware of having them enforce the term (which has changed a bit over the years, from a only one account of type with Nationwide, to what is there now), I would like to have all the information I can to balance the risk.


(Hrach Ghapantsyan) #12

Hi Guys,

I would just like to clarify whether you are planning to report opened current accounts to CRA’s - could someone from the team please confirm this?

Thanks,
Hrach


(Tom ) #13

For anyone who doesn’t know what this means (me) - can you elaborate?


(Mike) #14

I’m assuming he’s getting at whether Monzo will report to the credit agencies with the fact you have a current account and any associated overdrafts.

@HrachG - A wild shot in the dark with an answer but more than likely they will indeed report basic details to the CRAs because it’s a give-and-take relationship. Are you wanting to hide your debts or something along those lines?


#15

For those who don’t know what CRAs are, it would have been more helpful to put:

Credit Reference Agencies (CRAs)

Personally I feel that Monzo should only report accounts with a line of credit such as an overdraft. If you do not have credit i.e. an overdraft they should not report them.

EDIT This post is from a merged thread where the abbreviation CRA was not explained In this thread it was explained by the original poster so this post no longer neccessary


( related to Monzo CEO, Investor in Monzo ) #16

bit of a thread about credit rating / reporting here if you want


(Danny) #17

MetroBank report even though I have no overdraft so I would guess Monzo would too, I know Halifax and Lloyds did as well.


#18

My accounts at two other banks don’t and personally I don’t want my accounts reported unless they have borrowing on.


(Danny) #19

This is on Clearscore/Equifax, never had an overdraft or been overdrawn yet it shows.


(James Billingham) #20

Agreed that if there is no credit agreement on the account, there should be no reporting


(Josh Bray) #21

There isn’t on the prepaid account but the current account will require a credit search