Is being fully Monzo ruining my credit score?

It’s not “ruining” the credit score (history), that’s for sure.

But everyone who’s gone full Monzo will potentially be affected at their old bank - preventing you from building/maintaining a great internal score with your (previously) main bank.

For example, if you banked with Nationwide but now leave the account dormant, any pre-approved offers etc will be less likely to happen.

They probably can still happen, based on the monthly feed the bank get from the CRAs (whilst you maintain at least 1 active credit product/current account with the provider) but it’s certainly less likely.

A bank that sees somebody getting paid by BGC every month £1,500 can by reasonably sure their net income is still around about £1,500. A bank that sees nada has to guess/use CATO (incredibly unreliable)/rely on the customer to give a truthful declaration. Slightly increasing the risk (most people are truthful, some aren’t)

Impact of moving to Monzo on most people in most situations is going to be tiny.

BUT I’d argue it’s be easier to get a Nationwide mortgage if you use a Nationwide current account - whether that’s through enhanced scoring (you run your CA brilliantly and they could love that) OR just less paperwork needing to be sent (if you have a main CA with them, you don’t need to submit bank statements) meaning it would speed things up.

I liked the car insurer analogy - it’s never a definitive “yes” or “no” either way, but each person certainly needs to weigh up the impact.

If you’re in your 30s or above with a stable job & existing mortgage, highly unlikely to make any significant difference in any application.

If you’re a young tenant with previous bad credit (or just a lack of credit), then lack of CRA data/internal bank data could well be the tipping point of you getting a ‘no’ rather than a ‘yes’.

Credit Risk is like Jenga - add a block for every ‘negative’ and eventually it’ll topple over and be a decline.

I think this is a confusing issue that has been created by Monzo trying to use some edgy social marketing.

There is still a very big misconception that “FullMonzo” means you only use Monzo and nothing else - That sounds like how the OP has taken the term.

In that scenario, then yes, undoubtedly being “FullyMonzo” is affecting your credit score (as it’s highly likely you’ll be checking your Experian or Equifax scores).

If, like @urban, “FullMonzo” means you use Monzo as your main account, but still have the old accounts open, then the answer flips on its head, and it’s unlikely to affect your score.

I don’t believe your meaning of “FullMonzo” is true, as switching to Go #FullMonzo means that the other Bank Account gets Closed.

You don’t have to do a CASS switch, though.

It’s not my meaning.

It’s Monzos - At least… It’s the definition that has been given by Monzo staff numerous times on this forum.

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8 posts were split to a new topic: Should I move to Monzo?

Sorry, but I didn’t had the chance to read the full thread as I am at work :smiley: and maybe someone did already talk about this…
Does having a Monzo Plus impact your credit score? You have a contract and monthly payment thing :smiley:

I mean specifically…does Monzo Plus subscription work similar as a credit score “boosting” service does. For example like https://www.loqbox.co.uk/
You have 1 year service and you pay it off on monthly basis. Would this help people like loqbox does?
Just curious…

No, I don’t believe it would.

My understanding is that it’s not reported in the same way.

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yeh, it probably isn’t considered “credit”… :confused:

I wouldn’t be too upset by it - Keeping your Monzo current account in good order will boost your Credit Karma score in the same way - You won’t be missing out on anything.

If you did want to boost your scores across the 3 CRA’s, you’d need to take financial products with other providers.

The CRAs score is meaningless, they are not lending you money. Each lender scores you differently and secretly.

I wouldn’t say meaningless as such (although I know what you mean).

For people who aren’t “into” their finances, they perhaps don’t know some of the things that would be seen in a negative light (age of accounts, financial history etc) - I think the completely made up “scores” can possibly help some people get a grip on things (providing it says why the score is low).

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@nickh But why some people have 900ish but they are not able to get a sim only contract and vice versa?

Wouldn’t even dream to guess what goes into these decisions, and I’m not saying your “score” is necessarily an indication of your financial history.

But if this forum is anything to go by, I think it’s safe to say that the vast majority of people are financially uneducated to a degree (I know I certainly am).

I wouldn’t get caught up on the “scoring” system, but if the scoring system makes an individual think about what they are doing with various contracts/bank accounts/credit cards for example, and makes them understand even a little bit about what might be good practice… Then it’s a good thing.

I’d love for there to be clearer guidelines on this stuff, but it’s the murkiest of waters when you start looking into it.

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I agree, I’m just saying “don’t worry if a silly number goes down/up” you just need to check your report and forget about the number.

Guess where I did a current account switch service to monzo and closed my HSBC account.

Closing an account that you have held for a while can cause a dip in your score for a period. Lenders like to see long financial relationships. This dip isnt because you opened a Monzo account as such. It would be the same if you opened an account with anyone else and closed your HSBC account. You can see your score starting to increase again by the next month.

Your score is determined by the CRA not lenders. Yes a higher score is an indication of your likelihood of obtaining credit (based on models created by the CRAs) but your credit history is far more important (such as defaults, missed payments etc).

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Hey @spicypixel,

Out of interest, is this something you considered before you switched, or was it only afterwards that you realised?

I still don’t think Monzo do enough to educate around this subject.

I get it’s pretty hard, as the chances are that educating people on the subject would potentially lose them business, but I do wonder how many people will be negatively impacted by the hype of going “FullMonzo”.

I didn’t CASS to Monzo for the very reason I wanted to keep my old account history with the CRA’s to show a long standing financial relationship.

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Like someone else said, it’s not a Monzo thing, it’s because you lowered the average age of your bank accounts.

Incidentally, scores like that are a complete marketing gimmick and mostly meaningless.

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