Nothing doing for a while (fair enough), then offered 15k at 3.7%. For 2 whole days!
Then “we’re sorry we can’t offer you a loan”. Nada.
To me it’s about reliability. Is Monzo going to be there for me when I need them? Maybe on Monday, but wouldn’t bet on it on Wednesday. That’s not the way to deepen customer engagement.
Understand that lending decisions will shift as circumstances demand. But there’s a nuance to be had in the UX here. Transparency is creating uncertainty - which I’m sure isn’t the intention. But it is the result.
Thanks Chris, that’s the context of my recent posting. As I said, I was considering moving my main account (salary etc.) to Monzo this year (I’ve had an account for several years but use it as a secondary account) but things like this make me slightly wary. Maybe it’s the normal cut and thrust of finance but at the same time maybe this-new wave of banking is more susceptible. I don’t know.
That’s sort of not what I mean Michael. It’s more… the only way I can think to illustrate it would be say hypothetically my current (current) account enjoys a 5k overdraft facility. Then lets says i look at moving to Monzo and they too will let me have a 5k overdraft facility. Then I move my current account (salary, direct debits, the lot) over to Monzo and then two days later they reduce my overdraft to £5. That’s what it feels a bit like.
I totally understand where you’re coming from here. I only use Monzo now but, if I were reliant on an overdraft (to use your example) I don’t think I would have made that decision.
I’m no expert but it seems logical to me that there would be more chance of Monzo withdrawing a loan offer or overdraft simply because each pound they lend is a greater percentage of the total available capital than it would be for a much larger bank.
Of course, one shouldn’t ever be reliant on an overdraft but that’s easy for me to say - I know that’s not the reality for a lot of people and that’s a very separate issue.
I think it should be valid for a period of 7 days or something, subject to conditions.
As if I actually needed the money and I make plans around it and I think “Right, Monzo will lend me £10k, I’ll do that at the end of the week” and then by Friday it’s at zero, that’s hassle I didn’t need.
Or maybe they should stop you being able to check at all unless you actually want it. Take the transparency away.
What do you mean about relying on an overdraft though? I stay in the black, with an overdraft limit sitting underneath for the very purpose an overdraft is supposed to serve; if there’s an emergency one month I know I can still pay my mortgage whilst I sort out the cash flow.
I don’t use it, really, ever, but I sure as hell rely on it being there for the ‘just in case’ and I’d be a pissed off with any bank varying whether I can borrow on it on some sort of yo-yo process, which seems to be happening here (albeit with a different product).
Yes, I know ones availability to take a loan would be somewhat masked at any high street bank, but loan limits appearing, disappearing and flying up and down (along with the rates) does give the impression of some instability in Monzo’s lending criteria.
instability meaning changing criteria ? …albeit apparently rapidly changing criteria maybe their lending criteria isn’t changing , or the amount of money that they have to lend out …some people take up the offer , therefore the other peoples offer expires ??? …maybe the criteria is how many people taking up the loan offer , versus our amount we have for loans in these uncertain times ??
but I agree not great to be offered a loan one day for it to be withdrawn the next , but I can understand the logic …maybe
By ‘reliant’ I meant people who are persistently using their overdraft and unable to get out of it.
I understand what you’re saying - that’s a totally different perspective for me that I hadn’t considered.
(I’m 100% someone who can’t trust themselves to have an overdraft because I’m incapable of keeping it as ‘just for emergencies’ and end up permanently in it! )
I did find it strange earlier this month when my previous loan ‘approval’ (if you can call it that?) went away.
I obviously can’t access the Loans page to find more details now I don’t have an offer, but I assume there is a hard credit search after the proper loan request (vs a Soft one when they tell you you are eligible?).
I think an indication of Validity period would be a very useful thing to add - even if it’s just a week.
I was (very mildly) frustrated seeing the previous offer retracted, because I know my Transunion credit score has gone up, since the last time I got an offer, and up from “Good” to “Excellent”.
In the “we can’t offer” screen, it says my score is “too low” - and I get that can inherently mean “too low (for our now increased lending criteria)” as well as just generally “poor” - so I think the wording could benefit from a bit of tweaking perhaps.
It would be also useful if they say when they recalculate eligibility, so I know when to check back.
Not the end of the world though, but I just think the behaviour of that section could be improved upon.
I had up to about 15k offer from Monzo (at a decent rate)… then one day I needed an amount of cash (about 1k, not really that much) to cover an emergency and decided to use it… and the app was saying I coudn’t have a loan at all, with no change in circumstances and in the space of a few days difference. In that case I used the credit card instead.
For anything where I have more notice and a loan is more sensible I still probably wouldn’t use monzo because it’s impossible to plan when the offer can be taken away the next day (most loan offers have at least a 7-14 day expiry on them, so there’s no pressure to go ahead immediately).
maybe their lending criteria isn’t changing , or the amount of money that they have to lend out …some people take up the offer , therefore the other peoples offer expires ??? …maybe the criteria is how many people taking up the loan offer , versus our amount we have for loans in these uncertain times ??
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