My point is I’ve used both standard credit (where there’s a single balance to clear) and a product which supports per-item repayment terms (Paypal credit). Based on that experience I think the latter is more likely to produce confusion.
I haven’t used Tymit or Klarna, but from your post and looking at their websites it looks like they have per-item repayment terms?
ah, yes, Ive not used Tymit or Klarna, but from what I understand per-item borrowing is the basis of their offerings. My view (which is not based on evidence or personal experience!!) is that this would be more comprehensible in terms of managing borrowing and repayments. I was thinking it would also give a greater insight into spending, but admit that could easily be done with a traditional CC categorising transactions/merchants…
What’s your experience of PP credit ? and why do you think this approach could lead to greater confusion?
I used PayPal credit for a year or so just after it was launched. That was a few years ago now. Purchased a few items with it and each item had different overlapping interest free periods. I found it confusing to know when payments needed to be made to avoid unexpected interest payments upon end of a 0% term for a particular item.
If I want extended interest free borrowing I’ve found putting everything on a standard interest free credit card with a single interest free period easier to deal with.
However, it is possible the clarity of PayPal credit has improved in the years since I used it.
This is a bit of fun. Not product planning. 
I guess they key is how data is presented back to the user; it has to be clear, concise and understandable an it sounds like your experience of PP credit didn’t hit the mark here.
My main observation of legacy CC products is that your balance exists in isolation and unless you pay in full each month relates to purchases that exist on previous statements and have generally been forgotten. It’s often difficult to account for the balance. The focus on outstanding balance, credit available and minimum payments is undoubtabley simpler than per-item borrowing but does little for helping people understand their borrowing.
I think they’d do well to explain things a lot clearer.
Your current balance: £1000
Interest free balance: £583
Balance you will pay interest on: £417
Interest this month: £5.28
Minimum payment: £10
If you continue to pay the minimum payment, you will pay off your balance by 17th May 2031
It’s literally listed as an indicative figure. If it was at (clearly stated) 40% then would you want a card at that rate.
As I say, it’s meant as a bit of fun. If that doesn’t work for you, then that’s okay. But let’s not debate it further - it’s very uninteresting.
???
Agreed.
Might have to look at the Tymit thread to see what experiences people have been having with it.
And the thing which no one ever seems to understand: You only get the (up-to) 56 days interest free if you always continue to pay in full every month. When you carry over a balance, all purchases attract interest from the date they hit your account.
At the risk of upsetting a few, anyone with limited means who obtains a credit card and who is likely to pay only the minimum should steer (or be steered) away smartly. That’s one big dark hole…
+1
Personal opinion - credit cards (in the way most lenders do them) really aren’t a great product. They’re confusing for customers, keep people in debt and have loads of hidden fees that catch out those who don’t understand how credit cards work (which i’d confidently say is over 90% of people)!
This smells (to me) of a different approach to credit cards, like a pre-sales pitch for an upcoming, and radical, 
service? 
40% sounds low.
Amex has 74.7% cards and still people use them.
I have overdraft already using my balance & overdraft as the dynamic card limit would be great.
Mostly want for section 75 and when large holds are placed by companies. Plus 30 days to get my work expenses back.
40% APR is mad. Would never get it
That looks higher than it is because UK regulations force them to calculate the representative interest rate based on any annual fees for the cards too.
So the interest might be 20% but if you have a card with £500 annual fee for some benefits then it makes the interest look higher than it is
To hopefully give some comfort, Monzo are not (to my knowledge) planning a 40% APR rate! It was just a number that I plucked out of the air to test appetite.
I wouldn’t be surprised if they did the interest in a similar way to overdrafts e.g. 19%, 29%, 39% etc depending on how you scored on their credit decisioning system
Maybe a new question for the poll would be “what’s the highest rate you would accept on a Monzo card”?
