Its not bad options for people to have but I would need to think as my credit card Apr at 8.9 is lower.
They can however banks never do because you’re earning them, in the case of Monzo, 50p a day in charges
Thanks for all the feedback! 
This is very true. Especially with regards to copy 
I totally agree that %'s aren’t very helpful so that will probably be something that is changed 
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Seconded. And possibly an APR comparison. So people don’t get a shock when their financially minded friend points out there are other options but is simpler people couldn’t do the comparison
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Can I just say the clarity of that demo was incredible, super easy to understand and follow along with exactly the amount of credit I’m taking, re-paying back and for how long. Even the legal part was comprehensible even for someone with little understanding when I comes to finances. The design team have done a really good job even though I never doubted them for one minute.
The final spread the cost screen is my favourite. Having all of the information right in front of you instead of payment dates, amounts and balances being hidden over multiple sections is great. Again it’s clear easy to understand and I believe this will be a very useful feature for most.
Additional: The only thing I would add to this is if it’s possible allowing the re-payment date to be changeable to better suit. I get paid on the 26th so my bills come off between then and the 1st so I’m fine, but for someone who might be paid on the 15th would rather have the re-payment come off a day or two after that in case they run out of money or something crops up.
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True, but at the same time a limitation: You’d need to have the cash in the first instance in order to buy the goods, without any guarantee that a future loan application would be successful.
A friend of mine received a letter from his bank just a few days ago telling him to repay his overdraft within 7 days of the date of that letter (which was dated 3 days earlier than he received it, giving him effectively 4 days warning).
It certainly happens, and is one of the main reasons why you’d want a loan rather than an overdraft: It gives you certainty…
And it’s why the usage of overdrafts for anything higher than a fraction of your monthly income is very dangerous…
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I have known 3 cases where people were sent a letter by their bank giving 1 or 2 weeks notice to repay their overdraft. Despite it being renewed each year and on paper for a 12 month period in 2 of the cases and “permanent” in the other, the small print all said repayable “on demand”.
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Perhaps I shouldn’t of said never
‘Rarely’ would be better
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You can appeal to the financial ombudsman if the sudden removal puts you in financial distress due to bounced payment charges etc and then they’ll put together a gradual repayment plan to reduce it over a longer period. That’s the theory anyway, not sure how effective that is in reality
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Exactly. Especially with 4 days effective notice you’ll be lucky if Royal Mail has delivered your appeal letter by the time you are meant to have repaid the money.
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I suppose you could buy on the Monzo overdraft then pay it off immediately using this feature, and not incur the fee… although it’s a little messy!
There may well be the ability to use the feature up front then tag the transactions after that are being repaid. Maybe it just wasn’t shown in the demo?
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I could see this being useful for “emergency purchases”.
For example, my freezer dies and so I need to replace it asap, I go to ao.com (other white goods providers are available!) and order a replacement. Unfortunately, whilst I have sufficient funds to pay for this now, most of that is already allocated for future bills, shopping etc. So, I can then use this feature to get my money back and repay at a term/cost that I can afford.
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Sounds risky. What if you get turned down? You would have big problems with bills etc.
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Yeah, don’t get me wrong, I can see its utility. I’m just saying that limiting it to applying for the credit after the purchase will limit its usefulness significantly.
Also, as @hailstorm rightly pointed out, I wouldn’t want to take that risk if I was in that situation, as my application might be declined.
I’d rather use ao.com’s finance. At 19.9% it’s more expensive than the current mockup (which I appreciate we shouldn’t really read anything into) but at least I’d have certainty before placing my order…
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Ive been pre approved for an overdraft, I haven’t used the overdraft , so presumably the same pre approval would apply before you purchase and then try to spread the cost ? - unless you just go out and randomly purchase large ticket items thinking I will deal with how to pay for it afterwards, which I suppose some do ??? or get sucked in to store have now and pay later promotions
I would also point out that if I had enough in my account to just buy whatever it is in the first place then I don’t really see the point in having a finance option.
I like it. Can see me use it to take the sting out of a payment and spread it over two or three months.
One would hope so. I just don’t like having to rely on assumptions for this kind of thing.
Anyway, I don’t want to be a kill joy. I was merely making the point that while “it’s cool that you can do this post-purchase” (a statement that I agree with, by the way!) it would be limiting if you could only do this post-purchase.
Obviously this is an early draft, so I would expect some changes, and I would hope (and expect, quite frankly, as it makes no sense) that this limitation won’t be there in the final product…
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lol …but what else would we do all day if we weren’t hypothesising on possible outcomes and rules of a sneak peak product that is little more than a twinkle in the eye 
edit - actually this is exactly what the community is for isn’t it - to get feedback and indicate a direction of development and what the customers feelings are of certain features
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