Is being fully Monzo ruining my credit score?

[M1cky (Micky)]

@Toppy79

In terms of my cynicism, my thoughts are that by only having information with TransUnion, more people were accepted for the current accounts. Although they said no credit checks are made to be given an account, I feel that perhaps if Monzo were reporting to all three, the take up of new accounts would have been lower.

If Monzo were just interested in customer numbers and acceptance then they wouldn’t use the least popular CRA, they would avoid doing any credit checks at all. Which is what they stated they do anyway

[krr13]

There are a fair few inaccuracies being represented on here. You do not need to have a current account showing on your credit report to have a good credit score. Lenders tend to set their rates and eligibility for products initially based on your score. The score is a representation of [all] your credit history.

When it comes to lending the next criteria is normally affordability. This can be done either by commitments showing on your credit report or by looking at bank statements (which is what normally happens with a mortgage).

The fact that a current account does not show on the report is not crucial. What is crucial is a good credit history (and other factors such as stability of relationship, electoral roll, financial associates) and being able to pass the affordability test.

[Feathers (MikeF)]

@Toppy79

but I do think it was a deliberate move for corporate gain however you view it.

Of course it was. I always assumed it was on cost grounds though. A lot less sinister (although I don’t understand why such reporting would attract or deflect customers anyway)

[Peter_G]

I recently checked my Credit Karma score and got this piece of advice:

Basically, they’re telling me to avoid moving house to improve my credit score. Others mileage will vary, but like I won’t choose my bank account - or not move accounts if it’s economically rational for me to do so - on the basis of a credit score, I won’t let my choice about whether to move be influenced by a credit reference agency.

Genuine question: for those worried about Monzo and credit scores, would you hold off from moving house because your credit score might go down?

[Anarchist (Press ‘Help’ search ‘Contact us’ or email help@monzo.com or call 0800 802 1281)]

@Peter_G

Basically, they’re telling me to avoid moving house to improve my credit score.

Aren’t they simply advising you to stay on the electoral roll?

[Peter_G]

Possibly. But this was under negative factors - it implied that I haven’t lived at my address long enough. Ergo if I move it gets worse?

(I am on the electoral roll).

[phildawson (Sorry, I will have to escalate this.)]

The reason box always is shown in credit karma.

It’s just picking that because their are no other factors to be improved on.

I’ve actually asked this to them a few months ago to see if there was a time period before that reason goes and nope.

[Peter_G]

But the content remains accurate no? You move and your score goes down?

[phildawson (Sorry, I will have to escalate this.)]

Basically it might, but it’s not worth worrying about. If you need to move, move not worth staying for it. I would guess it’s far down the list of criteria in lending decisions.

[Peter_G]

I suppose that’s my point. Much like a bank account (especially if it’s not got a credit line / overdraft).