To me it wouldn’t matter if it was 1000%, there won’t be anything on it to pay interest on.
If I want to buy something expensive that I can’t afford to pay it off, I’d either get a new card with 0% on purchases or move it to a 0% BT card.
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I agree! And, developing this, I like the line of credit idea.
You have an APR from Monzo that covers your credit card and your overdraft.
And then you have a maximum credit amount, that covers both credit card and overdraft.
(And, in a more sophisticated world, an offset account or pot).
Then you can mix and match between them according to need. (And if the offset idea came to pass they’d be onto an absolute blinder).
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I wanted a Monzo Credit card anyway, but even more so now that Amex really pissed me off with some crap support last night so lets hope 2021 is the year
Honestly I would pay a annual fee if I could get the value from it.
IE make it back via cashback and points.
I only see credit cards as a way of getting free stuff to be honest as I pay in full
To be honest, I hope that Monzo keep things like this within their Plus/Premium offerings. Or at least follow the same Free/Better/Best idea with a Credit package too.
I think they could do something really quite ground breaking with a new Credit Card offering, without going down the ‘premiumisation’ route.
I for one am certainly more interested in a “monzo approach” to Credit Cards than I am a “monzo credit card with Cashback”. (And the latter is usually due to the fact that existing cards are better and cheaper when it comes to those things).
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That’s similar to how Starling do Loans and Overdrafts right? One lump sum you can utilise for either option if you so choose.
If you add Monzo Loans into the mix you can cover all of those needs quite nicely;
- Pre-approved limit that you use for your credit spending, pay off in full each month.
- Tap on a transaction to pay back over a number of months.
- Buffer on your main account to cover you if you need to dip below £0 for a short time between Months.
- A pre-set loan limit to help you front any up front large costs (and is paid back at a known rate over X months) all utilised out of the same fund of credit.
By this do you mean, a pot where you keep £x to cover your credit limit? As in your pot balance would determine your credit limit, or a pot which money automatically moves to when you spend, ready to pay off your bill?
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I mean, it will help keep the Community active thats for sure! Imagine all the new threads!!
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I’m going to regret Discourse not having a single shot “Merge Topic” action
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I mean this sort of thing!
Practically, that might mean either a form of pot where the balance is offset against loans. Simply put, if you have £1000 in an offset pot and £1000 on a credit card then you wouldn’t pay any interest. Similarly, if you had £700 in offset pots, £500 on a credit card and £500 overdraft you’d only pay interest on £300 (although naturally this would only apply to credit card spend after the interest free period).
Ideally, you’d be able to make the whole account offset. So the whole current account and pots would offset against borrowing costs.
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I’d have to get a Monzo credit card just for the FOMO
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That’s another thought I had when answering the poll but forgot.
FX fees. I get absolutely rinsed on FX fees with my current credit card, (not that it’s a problem in these trying times), but even if the card itself wasn’t the most competitive, the “Monzo Approach” to FX would have me signing up.
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Credit building also came to mind the other day. Some folk don’t need credit, but want to improve their standing with the credit reference agencies by proving they can responsibly repay credit.
(Although I’d rather just abolish credit reference agencies tbh)
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Out of interest - Why would a credit card with 0% FX fees be so important when you can just use your Monzo debit card and get 0% FX fees?
Edit to refine question a bit: What type of spending would you want the 0% FX fees on a credit card for:
- Spending in another country (eg. At restaurants)
- Deposits for hotels/ car hire/ etc.
- Online spending in a foreign currency
- Something else
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That’s a fair point, I don’t have a great answer, other than, a combination of “I’d probably rather use a credit card where I can” and “I’m a tight git and don’t like fees”.
For the most part, my travel abroad is for Work, so I intrinsically whack everything on my credit cards, and claim it back later.
For personal travel, it’s mostly the “big ticket” items I’d put on my credit card, so the Number 2 category + the actual settling of the bill, and I’d rather avoid fees there too. Edit: But the ability to ‘protect’ against additional charges, deposit holds not being returned, or claims against my card coming later would always override the fees, even if my Current Account is the “cheaper” card to spend on there.
I think ultimately though it just comes down to, “I’m more inclined to put stuff on a card when abroad”, and I think that’s just the separation of accounts factor driving that.
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Both valid answers 
Interesting - thanks, that’s useful to know! The “separation of money” piece is super important and something a few squads at Monzo are working to improve right now!
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Completely agree. I started using a Supercard by Travelex card to spend while abroad. That was fantastic but its demise led me to Monzo’s pre-paid card, which I then used exclusively while overseas. Then Monzo became a current account and then a Joint account - and is now the centre account of our finances. So when it comes to the big, unexpected, didn’t plan for that, expenditures - I’ll go for the credit card. And especially when overseas. ‘Jet Ski hires’? - credit card. Cruise costs (not really applicable nowadays) - credit card. Large purchases (while abroad)? - credit card. It’s a habit thing. Protect your central account for daily living and use a CC for the unexpected/large purchases and then pay the CC off as fast as possible.
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This is good to hear!
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Hmm…
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For me, all of the above - and probably in the order you listed them.
I would want to use a Monzo credit card as a daily spending card, and wouldn’t want to have to think to not use it abroad of there was a foreign loading fee. But the deposit point might be the key one: I really dislike the notion of companies taking a hold on my otherwise disposable spend. Using a credit card mitigates against that.
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Same reasons as credit card use within UK for me: prefer credit card for hotels and rentals, big purchases (section 75), and work expenses
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