Why does Monzo consistently peddle the myth that one’s ‘credit score’ is even a thing, let alone remotely important? After all, it’s a number made up by companies which don’t even lend, and of my three numbers, Monzo can see precisely none of them anyway.
References to your customers’ ‘credit scores’ are all over your blog, beginning with the Monzo University article, all implying the score is in some way relevant.
You have a chance for some real education about the importance of a clean credit history but seem happy to perpetuate something invented by the Credit Reference Agencies to sell people pointless services to curate these meaningless numbers.
What’s Monzo’s policy with regard to talking about ‘credit scores’?
I have excellent credit score… Monzo offered me £100 overdraft but other banks up to £5000.
Monzo forces me to move all my income to them to increase overdraft😡
…that only you and the Credit Reference Agency can see.
I hate to break it to you, but that number doesn’t mean anything; they made it up.
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Anarchist
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I have an excellent credit record (small short term debts, regular income which exceeds all of my spending, never missed a payment) but Monzo refused me an overdraft with no explanation offered.
To be clear, I only applied to see what would happen, so it doesn’t concern me that Monzo refused my application, it just seems to be a little haphazard at the moment.
It’s the first time I’ve ever been refused credit in over 40 years of banking, so it would seem that Monzo are VERY conservative in their lending policy.
Even if you have a good record on credit repayments other factors will be taken into account by some lenders like how long you have been settled at your current address or how often you have moved in the last 5 years or if you are renting or have a mortgage. So a simple relocation due to starting a better paid job can still have a negative impact on a decision.
how often will they re-check, will they use your Monzo repayment history, account balance, where you spend your money etc. For example, I go into my overdraft because I transfer as much money into savings platforms as possible, if I have a large unexpected payment I’ll utilise the overdraft. If Monzo could see this wasn’t because I was spending money on nights out, they may be more open to upping my limit
Yes please Monzo. Be more than a money happy bank. Be an educational tool, this also helps attract parents who want their kids to learn what credit is. Most of them never explain it properly which leads to financial irresponsibility.
Build something like ClearScore which clearly and simply explains what credit is and how to build it. They focus on selling you loans and CC but they explain everything pretty well. I had no idea what credit was and why I was denied all financing options I applied for eg. iPhone upgrade program. Be a financial institution not a business. And if people are more informed they’ll default less on their repayment so it’ll help you too.
Well, yes in theory, except that particular article is the one I refer to above. It was a perfect opportunity to educate, but just seemed to corroborate the myth of people having a ‘credit score’ they can check.
I am apparently not eligible for an overdraft. The message on monzo said they suspect I don’t earn enough. I think it’s because I don’t put my salary into monzo, I just top it up when required. I don’t earn a large amount of money but I have a full time job.
I have a good credit score and have never missed a payment in my life. I have an overdraft with another bank and I’ve never gone into it. It’s just nice to have one, just incase.