I see what you mean, and I’ve had a think about it, and I agree it’s an odd thing when you think about it but then maybe there is a logistical reason why they can’t do it.
I am thinking of it in the same way that if I get a mobile contract and choose to pay more upfront I can get a more expensive phone - O2 might internally say “he can have up to £900 loaned to him” but if I say I’ll pay £500 upfront then they will allow me to get a phone worth £1,400 because of this.
I just don’t know how it would work, practically. It seems to stem from the initial payment being taken at the point of purchase, which means 1/3 of the purchase isn’t a loan, it’s you paying upfront.
My only guess is something like section 75 where the full purchase would be covered and makes Monzo lives easier challenging something like that.
There’s room for improvement with flex and overall it’s a good product, but the things mentioned above probably need some attention.
If flexing something and the first payment isn’t due for a month from purchase then I can understand.
The point of never actually being able to use your full credit limit baffles me, unless Monzo intends to also make this a standard credit card facility over time.
A question for @TheoGibson if he’s still around these here parts:
I know that you’ve got a to do list as long as your arm, but have you thought long term about exposing any data or analytics on Flex use to users, maybe via Trends?
Things I’m thinking about:
What’s my average amount of credit at any one time?
is my credit use lumpy or continuous? Is there any pattern to it (e.g. for Christmas) that’d help me financially plan?
what merchants or categories do I tend to Flex?
which plan do i pick and how much on average do I spend on interest? What’s my average APR?
You only need to pay some of any purchase on a credit account for it to qualify for S75. You can pay £1 of a £4000 holiday on your credit card and you’re covered for the whole thing.
We’ve done a bit of thinking but in all honesty, at this stage not much.
Beyond trends - Something that does get requested a fair bit is a “cost calculator” so you can see (for example) if I make a £100 purchase today what would that look like for my monthly payments over the next 3, 6 or 12 months?
I’m not a designer so this is totally me thinking out loud (no promises) but I’d like a bar chart which shows the next 12 months of Flex payments (+committed spending?) that you currently have then layers on top what that £100 purchase looks like if you pick 3, 6 or 12. eg. next months payment would be £20 without the £100 payment but would go to ~£53 if I pick 3, ~£37 if I pick 6 or ~£29 if I pick 12.
For instore purchases , I guess I am limited by the contact less limit of 100£ , right ?
Guessing virtual flex card with gpay is only way to pay in store , there is no physical flex card?
So the answer is … putting aside the aggressive debt collector teRmInOloGy. They can’t force the first instalment off you if you didn’t wanna pay it. Lol which means they can do it properly so the first payment is in a months time
