What about credit cards?


(Leon) #1

What about offering a Mondo credit card, I know that Tom has said as a brand it’s only interested in current accounts but any chance of it happening in the future?


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(Josh Bray) #2

I think you answered your own question.


(Adam Hockley) #3

Currently it’s not going to happen only current personal only


(tom) #4

It’s a bit of a bugbear of mine that banks have forced people to centre their thinking around financial products, rather than addressing the daily problems they’re trying to solve more directly.

So I’d like to understand the problems you’re trying to solve with a Credit Card?

Are you looking for short-term interest-free borrowing? Ie, a cashflow advantage? Or rewards/points/cashback on purchases? Or longer-term credit for buy bigger-ticket items? Or Consumer Credit Act protection?

Many of these problems are solvable without a credit card.


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(Nigel Laverick) #5

One of the reasons that everyone’s finances are in such a mess, everyone wants to give you a credit card. It’s a first world problem lol, how do they cope in the wilds of Africa without the little bit of plastic to flash?


(Kal Mba) #6

…hmmm :frowning2: not quite sure about this thought process Africa is a continent. and “Africa also has credit cards by the way”…


(Adam Hockley) #7

Any previews of new card :credit_card:


(Jonathon) #8

I’d guess for most people it’s the increasing costs of living mean they require additional money to live. Add to that increasing social pressure to do/have certain things and the icing on top being powerful consumer advertising and suddenly what is actually a reasonable salary looks pretty crap.

But enter the banks who are more than willing to aid you in this quest (for a fee) and will help you get extra cash (for a fee), so long as you don’t spend too much (but they will still let you, for a fee).

I’d love, LOVE, a bank that actually suggested things to make my life cheaper, because frankly that’s why people turn to credit and get into debt. Is my rent above average for my area? Am I using the best way to get to work? Are there Italian restaurants nearby that people on average spend less in that I might not know about?

Suddenly I don’t need a credit card and my salary is quite fine thank you very much.

OH.

Stop giving 18 year old’s £5,000 credit cards when they’ve just moved to London as a student. First hand experience of how that gets you into a world of problems 7,8 years later that they conveniently don’t tell you about.

I believe they’re called morals and ethics.


(Alex Sherwood) #9

For me, the short-term borrowing to improve my cashflow is the solution I’m most interested in & obviously that will be addressed with the overdraft product.

Looking ahead, I expect I’ll end up wanting a credit card for rewards/points/cashback and although I can fund that card from my :mondo: current account (soon), to keep track of how much I’m spending on that card, I’d hate to lose the detailed transaction history, instant notifications, forecasting, budgeting etc. So if you could find a solution that either gets the account the data that’s needed to deliver those solutions or the rewards/points/cashback, that would be great!

I try to steer clear of making purchases for bigger-ticket items on credit. And I’ve never considered the benefits of consumer credit act protection in advance, I’ve only ever thought about it after something’s gone wrong and I’ve needed it, which happens very infrequently. But even then, it’s only saved me relatively small amounts of money.


( related to Monzo CEO, Investor in Monzo ) #10

this is another great opportunity - previously mentioned on the forum - for Mondo to get into schools and teach responsible finances to students and so capture the next generation of bank customers - I seem to remember a guy offering this opportunity to come to his school ?


( surohpotsirhC) #11

Sometimes it’s nice to have the credit card as back up. I’ve had months where too many large bills have come in at the same time and it’s been nice to offset one or more to the next month so I don’t need to go overdrawn.


(Jonathon) #12

But this is my point really - the ultimate answer is not credit - it’s lowering those bills.

And encouraging an environment where you save and have a pot for anything unexpected - a free, no interest, personal overdraft if you will (except you make money off of it when you’re not using it in the form of interest - perfect).

Make banking work for you, not the other way around.


(MikeF) #13

As a customer who routinely uses two credit cards but pays everything off every month, this is a question I’ve started asking recently.

My reason used to be that the current account interest, small though it was, was something I’d benefit from by paying on a card and using the free credit for 56 days or whatever. The fact that current accounts no longer pay interest never factored into my thinking until this month when I realised that my methodology was now probably just a pointless complication that I could do without.

This was shortly followed by the realisation that I couldn’t transfer from credit card banking to current account banking in one go. I don’t have enough money to pay for this months purchases and pay off last months credit cards at the same time. Thus, I’m in a place of transition at the moment, spending my spare current account balance after paying off last months card spending and resorting to cards when that finance runs out. In a couple of months I hope to be off my cards completely.

Mondo happened to come to my attemtion at the right time, therefore, as I use it for current spending that would otherwise have been on another card out of habit rather than necessity.


(Sacha) #14

A credit card would be useful in time. Whilst overdraft can cover small expenses a credit card is useful for spreading the cost of a larger expense. I’m also of the view (until banks modernise and start sharing balances with their rivals) that it helps seeing your current/savings/ISA/debt in one place.


(Adam) #15

CCA protection is the main reason for using my credit card. Just the peace of mind if anything goes wrong I am fully protected. Also AirMiles :airplane:️ had many free flights thanks to my Amex card


(Jonathon) #16

We need to bring the same protection to debit cards then.

And nothing is free from credit card companies. Either you’re paying for those airmiles in fees and interest or someone else is on your behalf.


(Adam) #17

Im not paying any annual/monthly fees or interest as I pay in full each month (guess I’m a bad customer :frowning: )
I guess they come from the card issuer when they get their share from the merchant service charge / interchange (same as what :mondo: gets).


(Jonathon) #18

That’s why I also said it could be people on your behalf AKA the ones who DO pay interest and/or fees.


(Sacha) #19

I can see side benefits for enhancing the service you provide.

Once the bank is launched, most employees will get paid monthly. Mondo or it’s successor could detect when this occurred and prompt the user to flush any residual balance from the previous month against a credit card or into a savings account.


(Rob Schlitt) #20

For me the Consumer Credit Act is one of the most compelling reasons to use a credit card. The protection offered for purchases over £100 is guaranteed by law, whereas chargeback and other voluntary schemes (similar to what the Cashplus card offer) just do not offer the same guarantee.