I know. Sorry that’s not what I was getting at. I more assumed that there was no requirement for monzo to accept all applicants and they can base it on their risk appetite
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I thought an individual’s credit history, before or while having an account has no bearing on whether they can have a Monzo account?
Don’t Monzo only take into account credit history when applying for an overdraft? Without an overdraft, doesn’t it function anyway as to what high street banks call a ‘basic’ account, that way to make it accessible to every customer regardless of credit history and circumstances?, but if you fit the credit criteria, you can have the bonus of an overdraft facility if needed.
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Yes, exactly that. Credit is not available unless you apply and pass their criteria (including a credit check)
You do have a ‘soft’ check for identification purposes but that doesn’t take credit history into account.
But it isn’t defined as a basic bank account as there is the option to possibly add the overdraft
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Apologies for the confusion. Does a ‘basic’ bank account on the high street mean then that there is never the option of having any sort of credit on the account eg. overdraft? I’m not particularly au fait with banking terminology - It’s incredibly confusing.
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Correct
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Yes. You have to apply for a non basic account
This might be helpful for you https://www.citizensadvice.org.uk/debt-and-money/banking/getting-a-bank-account/
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I’m reading this topic at a time when the credit union I am a member of is about to launch a debit card for members. However, the debit card will have a £2 monthly fee, and fees for ATM withdrawal (75p), ATM balance check (30p) and a few other fees.
The credit union is doing a great job for people in my town by combatting pay-day lenders and loan sharks, and offering a worthwhile savings rate, and loans to those who wouldn’t get them elsewhere. However, I can’t help thinking why would anyone get one of their debit cards when they might get a basic bank account for free, or even a Monzo account if Monzo are trying to be inclusive?
I can see some advantages is sticking with the credit union and paying the fees; like easy access to your savings via the account, but it seems to me that once again those who need the most help pay the highest prices.
I know the fees exist in part because there is a third-party company involved (i.e. it isn’t the credit union issuing the cards), but I wish there was something that could be done to help credit unions offer these services without charges, rather than them/me recommending other providers.
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The fees etc are also to do with the regulatory limitations on what they can do and their primary purpose of obtaining sufficient deposits to cover the loans they issue at low rates that are capped by credit union legislation.
Credit Union loans are great value compared with high street banks, but membership of a credit union is normally restricted to a certain geographical area, employer, or trade/industry.
The total amount they can issue in loans is related to the total amount deposited in accounts, so many often include a minimum membership period before you are eligible to apply for a loan.
Yes, I understand how credit unions work for the most part. Their interest rates are often much higher than high street banks and credit cards. However, the value comes from the fact that most banks aren’t interested in lending less than £1000, and that is where credit unions fill a gap for everyday expenses that some can’t always afford.
In what way does the legislation prevent them offering a debit card for free if they could find a way to fund this?
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The legislation does not prevent them issuing a card for free but as it restricts other sources of funding it is one of the areas where they are able to cover costs. While interest rates are low at present it may seem their rates are not competitive but when interest rates rise the fact their loan rates are capped by their legislation makes them more competitive at those times. When comparing other sub £1000 lenders such as doorstep loan companies and payday loans, they are still more competitive in my opinion.
On Starling forum for the first time and searched for this.
I too haven’t been able to get an account — tried a couple of weeks ago and again over a year ago, rejected both times for misgivings in my past which are rectified and continually being improved upon…
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To be honest in the weeks since, I’ve grown to not want a starling account. I’ve found Monzo in general to be exactly what I need, even the boards have been great. It’s their loss !! 
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Definitely this. I don’t mean that I want Starling over Monzo. I just want all the fintech!
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Exactly how I thought, wanted to be part of seeing and trying the new tech, but they’ll now miss out on my “valuable” input 
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In my experience I found Starling to be more accepting of customers with bad credit.
I have been given a £250 overdraft with Starling, whereas incorrectly marked payments showng as late on my credit record has totally blocked overdrafts on Monzo for me. (I’m with Stepchange)
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Monzo’s being very conservative with their lending at the moment so that doesn’t surprise me. But I expect they’ll start lending more as their confidence grows, as it’s a core part of their business model 
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