I noticed the overdraft option available in my account so out of curiosity I clicked on it, I provided my address history and then received an error saying that I couldn’t be approved for an overdraft at this time but I may be offered one in future when the availability is broadened. I then went back to my account, clicked on overdraft again just to see what would happen… and I was asked to agree to the credit agreement and now I have a £1000 overdraft, 30 seconds after being denied.
I’m not sure if there’s a bug or something unique about my circumstance but it seems like Monzo may be rejecting people due to failing to meet requirements and then giving them an overdraft for the full amount anyway.
(I have over £50k in available credit across various credit cards with very low utilisation, I assume I didn’t pass the check because of the high available credit rather than any adverse credit history…)