I have read that overdrafts of up to £3000 and Loans of up to £15,000 can be offered subject to eligibility. However the Monzo site content only refers to amounts of £500 and £3000 for these products. Is there a reason why this is the case? Could people be put off from applying if they need a larger amount than advertised on the site?
Maybe it’s Covid, who knows. It’s easier to win the lottery than to guess Monzo’s loan and overdraft eligibility criteria anyway. And you might be able to find better rates if you shop elsewhere
I would hope not. What you want and what you’re eligible for are two entirely different things.
The amounts offered were cut significantly at the start of Covid. I don’t think they have been increased again
Ah, I see that would make sense if the limits have been reduced by Monzo during the pandemic. Pre Covid were they advertised as higher limits?
I would imagine those higher limits might be reinstated at some point in the future.
Maybe even a Credit Card offering or Mortgages eventually?..
Agree, I just wondered if people would be put off from even applying with Monzo if they wanted more than what was being advertised. Especially those who use Monzo for main banking as they might not be eligible elsewhere, unless they use Open Banking information to make lending decisions…
Think this is the case with most lenders lending policies. They all vary and under regulation they are not allowed to tell us. I guess it’s easy to shop around for a loan but an overdraft not so much. I just wonder if people might be eligible for a larger amount but choose not to apply because of what they read, which would be a shame.
Yes they were. If you got accepted and made use of either at that level you got to keep it. My overdraft limit is at £3,000 for example
They were increased i was offered £2,500 for an overdraft a few weeks back when I checked in to see what the latest offers were
It does. Just like loans.
I do wish they’d communicate internally a little bit better, the increased offers been available for the past couple of months at a minimum. Yet the website still hasn’t been updated to reflect those changes. Doesn’t look good when they don’t have processes to keep other teams updated.
I really like that example of costs for the overdraft in your screenshot. Very transparent and user friendly.
I wonder how many people don’t apply because they want a higher limit than advertised and don’t want to do a credit check, so decide to look elsewhere…
Or how many people take £3k when it’s offered when they only need a £500 safety net.
Maybe new customers still only have the smaller limits until they are less new?
That feels more like a feature than a bug. If Monzo aren’t comfortable with loaning and possibly losing the higher amount, then having that person go elsewhere instead isn’t necessarily a bad result.
Monzo is my main account and they know it’s always left well in credit even before payday with large payments made to savings accounts so I’m a low risk as I’m very unlikely to use it and if I did I would be almost certain to pay it back.
I think the last time I used my starling was for a £20 cash deposit in may so I’m full Monzo bar my atom savings accounts.
Understand the point you make, however if Monzo are comfortable with their credit decisioning to lend higher amounts as they seem to be then surely those high risk losses would be minimised by the screening process?
It would be a shame if customers who were low risk went elsewhere for their lending because of what they read on the website/app as opposed to staying and getting a good deal from Monzo.
I just went to check on my current Loan-ability in Monzo, to get my routine “you have a poor credit score” message.
This time, I get a green tick against Credit History! (Although my Credit Karma info has had no change to it for at least 6 months but ok).
And now, apparently, Monzo don’t know enough about my income - even though I’ve been getting paid into this account for about 2 1/2 years!
I don’t need a loan, but I’m just so fascinated by the process of applying with Monzo.
I’ve said it plenty times before it’s now like playing with a roulette wheel, where will it drop nobody knows 🤦
It’s not made any sense over last 12 months and still doesn’t especially around income when you have wages paid directly into the account and they can see that coming in.
I must have been lucky when I got mine, the wheel landed on the right option that day.