It’s imho always positive that a lender trusts you enough to have an overdraft, especially one with a good limit
The biggest risk is if you were to start living in the overdraft
There always a risk in that lenders will look at your total available credit and ask themselves, what would happen if he or she maxed out those limits. But 1k won’t make much difference there imho
Just logged into my (dormant) Starling account and the overdraft offer I’ve previously had (but never taken up) has also disappeared now.
Suspect all financial institutions are becoming more cautious now. I applied for a new credit card over the weekend as the interest free period on my existing one was coming towards the end. It showed as preapproved in the Clearscore app, yet when I applied, the decision wasn’t instant. It came through a couple of days later, but can’t help but wonder whether everyone is being a little more cautious now.
True, its good to be given that backing. Just not sure if it would add to my credit mix…
Previously I used it a bit, but have had a raise since so couldn’t envisage using it loads. Just helpful if I forgot to transfer in from my other (interest bearing) account.
I have a limit of 1k with Amex, could then be the same with Monzo.
2k in limits off putting for mortgage applications in future? Hmm
Nah 2k in limits is pretty tiny, tbh I didn’t know Amex did limits that low. If your combined limits are more than your salary, then this might be a concern.
Having credit and not using it, to a point demonstrates restraint and self control, eg you have an overdraft but you avoid using it, unlike many (me included at one stage) see the limit as the new £0
Do you mean limits over my monthly salary?
And yeah Amex do, was initially a lower limit as well.
It’s a low rate card though.
Annual ie if your on 25k a year and have 30k in combined limits, this is dangerous if you go mad and max it out
My view is for 25k salary combined limits
Sub 5k is conservative
5k - 10k of limits is about right
20k plus is over extending yourself
Obviously using the limits to the full is a bad idea, on 25k I’d want sub 5k outstanding max (Ex mortgage) unless there was a very very good reason
It’s just below 20 net per annum
So 2k would fall well under 20pc of my annual income
That’s the total limits (not balances!) relative to yearly income of course
Apologies if this is deterring from thread purpose guys!
Does anyone know how monzo are treating the new “Loan Holiday” that was set today?
Does it really change things ? I expect not as its for those in financial difficulties who need to reach out to Monzo, for all I know they could have been doing it for weeks
I was just wondering if anyone has heard anything as i have not seen an email from Monzo or a tweet so i guess it is just going to a individual circumstance basis
I don’t think Monzo are feeling flush enough to suspend everyone’s loan repayments (and give free overdraft) to all for 3 months.
Also it’s probably better to keep paying if you can afford it, the payment holidays cost more due to interest and there’s a danger of bill shock when holiday ends
From what I have seen of the scheme, although repayments are suspended, the interest still accrues. So customers who can afford to make the repayment as normal will likely be better off doing so.
Monzo appear to be taking the “if you need help, ask for it” approach, which is far more sensible for them and their customers.
Some banks are offering temporary free overdrafts to everyone, which I think is a bit irresponsible. Some customers will see that as free money (a younger me would have!) and spend their way into it - and then when all this is over they’re suddenly living in an overdraft.
Every bank should provide £500 fee free overdraft:
Not a good idea I think… debts…
I’m not clicking a Mail link, and I can already see in the preview there’s a massive difference between the headline and the story. Are the FCA demanding or asking?
" every bank should provide £500 free overdraft ", which is not what the FCA are proposing at all , the devil is as always in the detail , however, because of the reporting some now seem to be expecting, as a right, access to a free overdraft from every bank 
I’ve been keeping an eye out to see if I’m eligible for a loan for months, but with no luck. I just contacted Monzo and they told me they use Trans Union for the credit report. So I took a look on Credit Karma (which is Trans Union to what I understand) and saw that there was a large red mark against my account stating that I wasn’t on the electoral role, which I am. There were also some confusion about my address. I have now emailed Trans Union and received a prompt message telling me that they’ll look into the issues. Here’s to hoping.
If you have a similar issue you can contact Trans Union here
TransUnion are pretty good at resolving, they had mistakenly reverted my electoral roll date (That I spotted through Credit Karma) and I raised as a complaint the other week they fixed straightaway and credited my Monzo account with a goodwill today!
What! I contacted them directly with a letter from the council to correct my voters roll data and had no such offer!
