Maximum loan?

[Luke_Dixon]

Does anyone know the maximum loan you can get from monzo?

[Rat_au_van (Em)]

£15,000

But that isn’t offered to everyone. You need to check in app what the maximum is you can apply for, if anything

We’ve launched loans to everyone who’s eligible

Over the past 9 months or so, we’ve gradually been offering loans to more and more of our customers. We took our time because we wanted to make sure we get it right. We did a bunch of user testing and research to understand the most painful things about borrowing money. And we’ve used that feedback to continuously improve the experience of borrowing with us, so getting a loan could actually help people to solve a problem or reach a goal. We’ve launched loans to everyone who’s eligible If you’r…

[joeldrapper]

It’s different for everyone. They offered me £1,000, which is less than 1% of my annual income, even though I have a perfect credit record, I keep to my Monzo budgets, I’ve never used my overdraft, and have my salary coming into a Monzo account. Apparently the upper limit is £15k, but they don’t explain how you qualify for that. ¯_(ツ)_/¯

[casda72]

@joeldrapper

account. A

Do you have a ‘permanent’ job with >12 months service?

[joeldrapper]

Yes. I also regularly use and pay off a couple of credit cards, and have done for years. I’ve never missed a payment, and I even have Experian record my rent through CreditLadder.

[Feathers (MikeF)]

Don’t feel bad. They offered me nothing.

[joeldrapper]

Don’t they have to explain how and why automated decisions were made about you under GDPR? I’m asking in the chat.

[joeldrapper]

I don’t really care TBH. If I wanted a £15k loan, I’d get a 0% credit card. It’s just a bit bizarre that the offer is so low.

[Rat_au_van (Em)]

I think they are fully compliant with this as they say if it’s credit score, your outgoings, CCJs etc rather then just a ‘computer says no’

[joeldrapper]

But I have years of credit history, no CCJs, I’ve never missed a payment, and I save about two thirds of my income. So that doesn’t really explain it.

[danbeddows (Dan)]

Other things that impact your credit score:

1. your credit utilisation % (used credit / maximum accessible credit via OD+CC’s). 0% isn’t good. 100% isn’t good either.
2. your address history. moving around often is riskier.
3. whether you have a mortgage
4. whether you’re on the electoral register.
5. whether Monzo knows your salary. If not they’ll use national statistics based on your postcode to estimate it.
6. the average age of your financial accounts.

Also: savings are invisible to lenders so don’t count towards eligibility.

[Feathers (MikeF)]

I assume, in my case, it’s because all my money comes in and then it all goes out again. Monzo have no visibility of savings so would have to assume I spend it all.

[joeldrapper]

1. Utilisation is good: low, but not 0%. I put a lot of business expenses through my credit cards, but I also have a high credit limit.
2. I have moved recently from Canada, so that might have something to do with it.
3. No mortgage, but I record rent payments via CreditLadder.
4. I’m on the register.
5. They know it because it’s paid into my Monzo account.
6. Average account age is good. I still have my Barclays account that I opened when I was 12.

Savings are invisible, but disposable income isn’t, and they know I manage my account well.

@Feathers

I assume, in my case, it’s because all my money comes in and then it all goes out again. Monzo have no visibility of savings so would have to assume I spend it all.

Could be this for me too. I always have a good buffer in Monzo, but everything else goes to MoneyBox or Newcastle Building Society.

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

I’d rather they had offered me nothing.

I got offered £3k at a ludicrous 26.8% APR.

Feels like a slap in the face. Excellent credit report, active Monzo usage but I only use it for general monthly spend so it they don’t see salary or bills or savings.

My income is only £52,000 but I know I can get £25k with Zopa if I needed it and at a decent rate.

I’m hoping to never need it but would be nice to have £15k at 3.2% as an option. It feels so lucky dip in what people get offered.

[joeldrapper]

That should be more than enough for a £15k loan if you have a good credit record. It’s a lucky dip. Has anyone in the community actually been offered the full amount? Maybe it’s only theoretical.

[mholland (Martyn Holland)]

I’m not eliglible for a loan or an OD, presumably because I have a Court Decree (scottish version of a ccj) on my credit profile (paid and settled, but still)

[neovo]

@phildawson

My income is only £52,000

Only?!

[tbutz (🏳️‍🌈 Producer of "low value commentary")]

Oh you poor dears with your large salaries not getting offered the maximum loan possible. I don’t think anyone can quite grasp how you suffer.

[42644]

Lenders aren’t in the business of rewarding good credit management, they’re in the business of making money: loans are offered on the basis of profitability, which is based on more than just your assessed credit score. This is especially relevant to Monzo, as they have a long road ahead of maturing their risk management through building an understanding of their customers.

There’ll always be oddities when it comes to customers experiences of lending, for example I had a credit card with Natwest that had a <£1000 limit and they repeatedly refused to raise the limit above £1000 so I applied for a new credit card with Natwest and received a £12,000 limit immediately. Does that make much sense from the outside? No, but that doesn’t mean there isn’t a reason behind it.

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

Just because it’s higher than the national average doesn’t mean you should be treated differently. People need access to loans on all salaries.

I can have have the twice the income as individual on £26k but still have less disposable income due to a family, higher tax and fewer benefits.

To the people in the forum who have £100k+ salaries, I would say that’s a good income.

It’s all relative.

And not a case of

The only was aimed at Monzo btw.