I should probably start this off by saying I’m a full time Student at University and I get money every month from my parents who live overseas via bank transfer to one of my other UK bank accounts and then transfer it to my Monzo account.
Every once in a while I’ll receive scholarship money from University but outside of that I have no regular source of income. Traditional legacy banks straight up refuse to give me an overdraft or credit card because I don’t meet their income requirements which are typically 8-9K of income per year.
And yet I almost got an overdraft with Monzo because of Monzo looking at one scholarship payment of £667 despite the fact that I only get that two or three times per year. For reference, the usual bank transfers every month and even a part time job I had for a few months didn’t satisfy the eligibility check for an overdraft in Monzo.
Thankfully I was denied for another reason, being deemed too risky due to my poor credit score.
I’d like to suggest that Monzo improve the robustness of their income checks on Overdraft and Loan eligibility cos I can imagine others in a similar situation to me using Monzo could be offered an overdraft or a loan that a traditional bank would never offer them due to the risk associated with that.
A way of improving the robustness could be to not focus on a one off “large” transfer but to look for a history of similar transfers and check to see if they receive it on a regular basis (e.g. once a month, once a week).
Sorry if there are any typos.