🔜 Incoming payment advances

I often find myself absolutely skint towards the last instalment of my student overdraft, or short to pay rent because my student loan has not yet come through.

Surely if your account says that 2.5k is due in 5 days it shouldn’t be difficult to have that money given earlier, as the 2.5k received can go to paying that money back?

Either apply for a Monzo overdraft (quite expensive), or if you’re a student a free student overdraft from one of the major banks as they all offer generous ones. This will solve that problem.

I’m not quite sure what you mean by “last installment of my student overdraft”. Could you elaborate?

Sounds like someone should be using pots to ring-fence money for important bills like this to avoid the situation :innocent:

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Getting an advance just means it would be an even longer wait to the next income and even longer to make the money last. Dangerous territory. I would suggest putting the money you need to save for bills into a pot :wink:

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Monzo would get 3 days notice of the incoming payment (unless there’s a weekend in the way) no notice if by faster payments (which I doubt) but the sender can still stop the payment during this time so it would be open to abuse

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How much interest would you be prepared to pay on a short term loan like this? I think that’s what would put a lot of people off this sort of idea.

Offering people to be “paid now” from the BACS Credit pending notification could be a good idea.

  • Upcoming BACS Credit appears in Home feed.

  • Customer clicks on upcoming BACS Credit feed item then clicks “Get paid now for £5” (or similar).

  • “Are you sure” pop-up appears reminding the customer that they can get the money for free if they wait until Y date.

  • If customer says they’re sure, (amount in BACS Credit - fee for getting paid early) is deposited in the account.

It would effectively be a lower risk loan since Monzo can already see that the money is coming and the risk is from the company sending the BACS Credit and not the user.

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You might appreciate this new feature they are testing…

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