Loqbox is ‘free’ (if you discount the fact you could get interest) but you have to apply through them for savings/current account products before you can withdraw - if you don’t they charge you (£30 I think).
It’s a good idea though for those that really need it (mines getting much better now - credit cards, car loan etc) - as it shows as a loan of say £3000 (if you opt to save £250 a month).
I’ll give Call Credit another month to update, if it doesn’t I’ll get on to Monzo. Shame they don’t report to Equifax & Experian where it’d really make a difference!
Overdraft is great. I like the notifications to move money from pots or outside of your monzo account to stop you going into overdraft. Really encourages you to not use it. I wish all banks did that.
Has there been any development on the issue where Monzo can’t find your credit file? Creditcall and Noddle find my no problem using the same details Monzo has.
To further add to the non monzo experience of overdrafts, I have a current noodle score of 610 and Experian score of 986 but I am still ineligible, mainly due to the fact I have a mortgage apparently.
It’s completely bizarre and the most negative experience about Monzo so far.
Credit scores are a bit too broad to mean anything. And your report reveals a few different factors (not just excellent or poor):
Good vs Bad: On the election roll, No CCJs, No missed payments
Available credit: How many sources of funds do you have?
Utilised credit: How much of those funds are in use?
Repayment: How often are you using those funds, are you paying off in full or in part
Banks are not going to tell you in detail why you failed as you might try to game the system. I believe Monzo are being risk-averse so all those points may add up whereas Barclays may be okay with just points 1 & 2 clearing their tests (as an example).
In regards to this, I’m with 5 other banks, mainly to capitalise on offers.
But they all have decent overdrafts that I never use. Would it be good for my affordability to reduce or remove those overdrafts or would that impact me more negatively because the amount lenders are prepared to lend is reduced?
Just as every bank has their own criteria, so does every lender. I wouldn’t worry too much about it. Plus, you did say Monzo said the mortgage was a factor, for whatever reason.
Lenders will be able to see the amount of credit to which you have access, and how much of that credit you use.
You say you have access to five overdrafts at other banks. At least one (Barclays) is £1000. You say you never use them. Perhaps Monzo has calculated there is no reason for you to have access to more?
Why do you even want six overdrafts, especially as you never go overdrawn?
Remember, Monzo charges a fixed fee for you using your overdraft, not interest on the amount borrowed. Also, it does not benefit when you exceed your limit, because it does not charge extra for bounced payments.
Without turning this into a discussion about the pros and cons of the fixed fee, it is a fact of the product’s structure that Monzo do not make any more money on a larger overdraft. If you’re £50 or £5000 overdrawn they still receive the same fee.
This may limit the lending levels Monzo are prepared to go to, because the benefit to the bank does not go up in line with the risk of default.
(This is intended as an objective explanation as to why Monzo’s overdraft limits are generally lower. Please let’s not turn it into a discussion on the ethics of such a model. That has been discussed at length elsewhere.)
IMO much over £2-3k is moving away from overdraft territory and towards loans, depending on salary. If it takes more than 1 monthly/paycheck cycle to come back out of OD (even if only for a short time) then the OD is possibly too much
Monzo are now claiming that my overdraft was withdrawn because they didn’t know about something on my credit file that’s almost 6 years old, and that Call Credit have only just told them. So that either means Call Credit are useless or Monzo gave out overdrafts without doing the necessary checks in the first place. It’s all a bit weird.
I just feel the entire process of Monzo doing overdrafts has been rushed and haphazard. Its clear that its working for some customers (me being one of them) but it is also clear Monzo and Call Credit have a lot of work to do in this regard
I have to agree with this. I’ve been arguing for some time for my overdraft to be increased from £100 to a £1000. I’m getting told no but yet other banking corporations are offering me planned overdrafts of £2000.
Exactly, I get Monzo want to be more cautious but only working with Call Credit is seriously hampering their ability to scale overdrafts as you and @seahorsejockey 's examples can attest to.
Plus the replies to our concerns just seem very “brushed off” and we get “we are slowly scaling and being more cautious etc”. I’m sure Monzo know what they are doing but it really does portray them in a bit of a negative light when it comes to overdrafts
