Hi,
With the cost of living I’ve seen my credit score drop quite a bit, I was looking over how I could sort out my overdraft and noticed that Monzo charges 19/29/39% AER based on credit rating.
I’m currently in 39% but is this likely to change as my credit situation and score gets better? or is this a contract with my Monzo overdraft I signed up to, meaning im on 39%Aer indefinitely?
Thanks
It’ll remain the same.
Carlo worked there so his answer is right, but just thought I’d add my 2p…
It seems a very primitive system to me. I had an OK credit rating when I got the overdraft years ago due to high debt vs low income. My rating has increased throughout that time as my debt disappeared and my income went up. I can now get pretty much any credit card or any loan I want including 0% deals, but my monzo overdraft is still at 39%. Obviously I never use it.
Can they up the rate if you initially got the 19% one?
Never seen an overdraft rate change in my years in banking, credit cards yes.
Wouldn’t out anything out the picture with banks feeding into shareholders.
Look at the 39% thing, no bank really needed to, but they could cuz the FCA said so.
Just to add my experience on this.
I’d had an overdraft in Monzo for ages at 29%.
I never used it so a few weeks ago I thought I might as well close it.
Fast forward to yesterday and I got a prompt about whether I would like an overdraft. Was curious so ended up applying once more and now have one (albeit at a lower limit than before) at the lower 19% APR.
Suspect my credit score may have improved a little over the past few years although not sure. Still, nice to have the cheapest of the overdraft options.