Would a Monzo loan not be reported on your credit file then?
You wouldn’t be going through another search on your credit file and possible decline, it’s only showing in app because you’ve met eligibility. Also a lot of people without a shiney score have to make multiple applications before getting accepted, which does just as much damage, as lenders refuse after 3/4 applications in last X months.
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I don’t tend to borrow at all (montage and car aside) - If I have to go through a few months of pain to save and buy something, I will.
The flip side of this is you are assuming that everyone has an understanding of their finances, and the implications of taking a loan.
Sadly, we are not all as savvy as yourself, and those on the forum who share an interest in the subject, and I’ve seen many friends get into debt because taking out the loan was the easy option.
So yeah, the fact that Monzo make it so easy is a blessing and a curse.
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I often use klarna pay and it just shows as a soft check as long as it’s paid by the due date.
when I want to use PayPal credit for spread the cost it just shows as a standard revolving credit line the same as next and very credit does. My expectation is that Monzo should appear as this as well
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I think maybe the focus for Monzo should be to look at those with a poor credit and ask the question is the reason why you have a poor credit record because you couldn’t actually afford a loan 1235% but you could have afforded a much lower loan. If the answer is that they could have afforded a loan, then if anything there is a gap in the market for affordable pay day loans
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The screenshots of the loan show exactly how much it’ll cost, there’s no ambiguity there at all. If people have the right information they are able to make the right choices
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They only make it easy for someone who’s a good candidate to receive credit. As you know, since you spend so much time in this forum, Monzo’s lending criteria is very conservative, hence all of the complaints in this topic Loans (old thread). Which also tells you that this isn’t a product for people with poor credit histories..
There’s more about this here -
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I said the very same a few replies ago.
Which undoes the arguments of people who are struggling to get good credit elsewhere (in my opinion).
Which kind of brings me back full circle to those people who are offered this Monzo product (assuming the lending criteria is as strict as the rest of the Monzo product line up) - Why would these people (those who are clearly not struggling to afford a kitchen appliance or anything else), opt for the Monzo spread the cost option?
You seem to be agreeing that a “good candidate” would be someone who has the ability to take out a low interest credit card, or a pre approved loan, so the only thing I can think of is they planned the purchase very poorly, or it was a very unexpected large necessary purchase, that they can’t cover using other payment methods…
Purely curious at this point, but as it’s all hypothetical, I’ll wait until someone comes along whose actually used it - Rather than imagining a potential scenario.
Good credit doesn’t mean you have plenty of spare money.
Source: Me.
I have excellent credit but very little spare cash.
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I think it’s clear by your replies both on this thread and on the locked pots thread that you find it hard to envisage any scenario where someone needs credit or a facility to save money and not be able to touch it. That’s fine, you clearly have control over your finances that the vast majority don’t. Your refusal to acknowledge any explanation as anything other than an example of other people not managing their money as well as you means I’m not sure what you’re after.
A good candidate to Monzo isn’t the same as a good candidate for other lenders
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I used it to pay off part of my overdraft that I’ve had for a long time with one of the high street banks, since the rate was lower. And also to spread the cost of a recent large purchase.
Knowing that I was likely to be approved, it would be easier to manage the loan & the fact that it was simple to take out were also factors in choosing to borrow from Monzo.
That seems like a pretty valid use case to me, rather than ‘irresponsible lending’.
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I struggle to understand why someone would buy something with their debit card, and then chose to pay more for it by financing it at a later date.
Given that we’ve established that these customers are likely to be approved for decent credit lines elsewhere, it seems extremely wasteful 
The locked pots thread is completely different, so not sure why that’s been mentioned?
It’s my opinion, but it feels like anyone could come up with a scenario to support an idea - Despite how rare that scenario might be.
The supporting “arguments” seem flawed, but everyone is entitled to their opinion.
Have you not looked into other bank providers with much lower interest rates? As someone as financially savvy as yourself, it seems a bit crazy that you’d be happy to pay back more, just because it’s Monzo?
Perhaps I’m alone in my thinking, but I’d rather use the best (and cheapest) product for my needs at any given time.
As I’ve already explained, that’s not the reason why I chose to use a Monzo loan. Please don’t patronise me.
I’m not patronising you.
These are your reasons, but you are prolific in the finance sector, and it feels like those reasons are more about coming up with an answer to fit the question, than genuinely what happened - But it’s your reasons, so fair enough - That’s why I asked the question 
I’m sure you are well aware that it’s pretty easy to take a loan out with many of the major banks (all at a lower interest rate).
Either way, good luck with it!
If you’re just going to disagree with dismiss any explanation that doesn’t match your own then I don’t know why you’re wasting your time here - you don’t seem to be open to learning anything new.
Edited - to remove the red text & replace with the green text.
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come on guys its crimble - we can agree to disagree
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Lol, it’s not about disagreeing or agreeing.
I think it’s fair enough to question why someone who is extremely knowledgable of the sector, would chose to pay more through Monzo, than use an alternative method (which are still pretty simple, despite what people make out).
Perhaps I, and others could be missing something.
Now it’s there for people to learn from and reference in future. What a world we live in.
You’ve given your answer, so thank you 
Agreed. It’s about not dismissing others experience and trying to put yourself in their shoes.
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I’m with @nickh on this one. I couldn’t understand the ‘spread the cost’ approach as opposed to get the credit and then purchase.
When you make the purchase you have no way of knowing whether you’ll be able to spread the cost? So you’ve made the purchase knowing you have enough capital to cover it so I’m not sure why you would then use this option at extra cost.
I’ve guessed I’m not the target market for this but would others make a purchase on the assumption they’d be able to spread the cost? What if then you don’t get offer?
Send a little dangerous doing it this way around.
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Assuming the loan isn’t already showing as available in the Account Tab (which mine was) then you’re right that no one should be making a purchase while counting on being offered the loan afterwards. My understanding is that in that scenario, Monzo will simply offer you the loan after you’ve made the purchase, on the off-chance that you then decide to spread the cost. Which is harmless since at that point, you can comfortably afford to decline the offer.
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