Is being fully Monzo ruining my credit score?

Well there are plenty, every week someone is complaining because can’t get a new credit card/loan with his perfect score.

Weirdly Monzo admitted basing their loan on the actual credit karma score. Its recently changed to their own assessment based on the report.

I’m wondering how many lenders actually do this.

I was quite shocked. I didn’t think it was possible for a bank to even see the score.

I’m not sure but I think cras also offer a different score with other logarithms and this one is completely different

After switching my salary to be paid into Monzo account 2 months ago I’m pretty sure Monzo is affecting my ability to get credit.

When I do a soft credit check to see offers available to be through Clearscore all the usual offers have now disappeared that have always been there. To look at this further I decided to apply to one of then outside of Clearscore and it came down to a referral as it wanted to prove my income via bank statements.

I’m aware all the big banks report to all the CRAs the amount of income that is paid into the account. This is then used to verify you’re income when taking out credit with other companies. With Monzo only reporting this to one CRA it’s likely that more referrals/declines are going to occur and explains the situation above.

Sadly it looks like I’m going to have to at least pay my Salary back into Santander for the time being so there is a record of my income appearing within the main CRAs.

Monzo need to report to all agency like big bank do, if people obsess about score monzo should make customer happy.

They don’t report money paid into the account.

Lenders get your income information from what you put on your credit application

It’s all about debt owed, if you don’t owe anything you should see a balance of £0 reported in Clearscore. It will show balance in how much you have left on your loan or mortgage etc and if you’ve missed any payments.

You’ll still see a £0 balance next to Santander in Clearscore if you have a positive balance. Even if you’ve told your bank separately that you work for xyz. They aren’t looking at incoming xyz payments and then reporting to CRAs that they are telling the truth by doing some take home pay maths from your gross salary you may have told them when creating the account. :angel:

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I don’t think you have been declined because you are paying your salary in Monzo, check your files and see if there is any incorrect or bad information. I’m full Monzo and I haven’t had any problem getting credit (amex card, virgin 0%purchase so far and when I do a soft search, I’m pre approved for 2 cards and 90% with Barclays)

Not all big banks do.

I recently remortgated with NatWest. Their mortgage adviser told me they had no idea I banked with Monzo day-to-day as it was off their radar. They only knew when I handed over the bank statements. This leads me to believe they had reviewed my credit file before I went through with the full mortgage application. Once they reviewed my printed Monzo statements then borrowing wasn’t a problem, but I am 100% certain that banking solely with Monzo could impact your ability to borrow where the lender solely looks at the main CRAs to determine eligibility.

Im sorry but that isn’t correct. They report the behaviour of the account and how much debt it is in but they also separately the turnover but not the balance. Proof below:

Santander confirm the same e.g. https://www.santanderforintermediaries.co.uk/products-and-criteria/mortgage-lending-criteria/

“AIV is a method we use to verify an applicant’s stated income by comparing Current Account Turnover sourced from Credit Reference Agencies

I also had a similar situation with Natwest when I applied for a credit card. I actually went as far as taking them to the Financial Ombudsman over their conduct. They are fundamentally not setup to handle applications from people who don’t bank with them. It’s not Monzo’s fault.

I disagree that “banking solely with Monzo could impact your ability to borrow”. It may cause you to jump through more hoops but it shouldn’t actually affect the outcome.

It’s going to have some effect. Some lenders won’t be willing to check salary outside of using the CRAs. Some will. In the end i would rather have an approved outcome than a referred one just because Monzo don’t report to all CRAs. Never mind that these site that show you credit offers available are certainly going to show skewed figures on acceptance chances if not all the details are available.

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I never said I was declined. It was referred. Provided bank statement electronically via consent and it has been approved instantly without human intervention. I’ve never been asked to prove my income before not even for a Mortgage.

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GDPR should mean banks have to be up front with what data they are sharing and with who. They dont have to state lending criteria but if they are selling/moving data about the person I would hope it would be covered as its our data not theirs.

I actually said “banking solely with Monzo could impact your ability to borrow where the lender solely looks at the main CRAs to determine eligibility.”

I stand corrected. I’ve been involved with API calls on projects and it definitely wasn’t possible to do a call to find estimated income. I don’t know if this is a recent thing. We be great if some devs can share some light.

Just looking at this :eyes:

Experian is working with Current Account Turnover (CATO) data
provided by UK banks to develop a method of reliably estimating
income. Incomes supplied on a credit application can be checked
against this data to provide an independent view of an applicant’s
level of income.

I assume a SAR request should* show exactly what data is being held with each. :man_shrugging:

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No. It’s not.

You can close this topic now.

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I don’t know why you feel the need to make sweeping statements on topics you seem to care little about, but it’s just as easy to ignore them if you don’t like it.

There are absolutely times where being “FullMonzo” could make people’s credit score lower than if they banked elsewhere.

As someone who uses Monzo as their main bank, I clearly don’t think it affects my situation, but you only need to actually read this thread to understand the situations where it could have an impact.

The thread serves as a point of education for lots of people who come across it, especially the younger people who are perhaps learning about CRA’s and credit scores for the first time.

Closing it serves absolutely no purpose, and it’s worth remembering that everyone will be in a different situation.

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I want Monzo to make expiran report, will make my credit better then.

Instead of giving money for compensation like in other thread pay it to credit bureaus