Monzo Loans

[Deleted User]

In the 'one click' world we're in I can believe.

Other day spent time getting near a proper computer for the purpose of tailoring an application, about an hour updating CV went to apply and just one button sent the CV off, regrettably the old one too. No option to write a cover letter. Didn't even think I was signed in. :cool:

NewToTheUkAgain

I find it hard to think any one click without signing a pre contract would go through or the borrower wouldn’t be committed to the contract

Older_Not_Wiser

Hi :beer:

Thanks for this post!! Helped me out of a real sticky situation, I have credit card debt on high interest cards and couldn’t get anything anywhere but remembered I had a Monzo Account, now have an overdraft and a loan and all pretty instant!

I can now pay of the the credit cards and cut them up and have finally some money to myself again!

Kentish_Dave

You’ve increased your overall debt, rather than take out only what you needed to cover it to have “money to myself again!”?

That’s not good, you seem to be increasing your borrowing just to have some spare cash now; what’s your plan to start living within your means, which would see your debt reducing, not increasing?

Older_Not_Wiser

So I’ve increased my debt by taking out a loan at 4.5% for the exact amount I owe? I have already used the money to repay.

How was this not the smart move?

Takmon

Older_Not_Wiser wrote: »

Hi :beer:

Thanks for this post!! Helped me out of a real sticky situation, I have credit card debt on high interest cards and couldn’t get anything anywhere but remembered I had a Monzo Account, now have an overdraft and a loan and all pretty instant!

I can now pay of the the credit cards and cut them up and have finally some money to myself again!

Older_Not_Wiser wrote: »

So I’ve increased my debt by taking out a loan at 4.5% for the exact amount I owe? I have already used the money to repay.

How was this not the smart move?

So you have a budgeting problem which has caused you borrow money on high interest cards because your spending more than you have coming in.

Your "solution" is to borrow more money and pay off the cards and then "cut them up". So you not cancelling them which means you can start using them again by simply ordering replacement card at some point in the future.

You have also got an overdraft on your account so considering that you haven't sorted out your budgeting problems this will be a way to easily increase your debt before you move back onto the credit cards.

You need to get over to the Debt-Free Wannabee part of this forum ASAP and see how your exact situation has got a lot of people deeper into debt.

Older_Not_Wiser

i have self control, there is no need for me to close the accounts at all, let the credit history build would be better.

If I thought I may be tempted by it then I would close them.

The only reason I have debt is paying out for a unexpected car repair. This wasn’t expected, just unfortunate. When I get my annual bonus I shall be clearing the loan with Monzo

Takmon

Older_Not_Wiser wrote: »

i have self control, there is no need for me to close the accounts at all, let the credit history build would be better.

Then why are you cutting them up?. Using them for planned expenses and paying them off each month would incur no interest and would mean you build up a positive history of using the cards.

But you need to be financially disciplined to do that. If you think you are financially disciplined then why do you have such poor credit history that you were refused for credit elsewhere.

Older_Not_Wiser wrote: »

If I thought I may be tempted by it then I would close them.

The only reason I have debt is paying out for a unexpected car repair. This wasn’t expected, just unfortunate. When I get my annual bonus I shall be clearing the loan with Monzo

If you own a car then you expect maintenance and repairs so should be putting away money to pay for things like this. The fact that it had to go on a credit card shows you have no money saved at all for emergencies. So your living on the edge and getting over to the debt-free wannabee forum for a review of your budget will help a lot.

Older_Not_Wiser

I’ve come on here to thank the OP for some information that I found useful. I have not headed over to the other boards as that’s not what I’m looking for, if I had then I would maybe expect a lecture.

I do put money away regularly for maintenance, but having some vandal damage the mirror the on car and cut my tyres isn’t a planned for situation and not worth trying to claim on my insurance as I don’t want to affect my premium.

Just because I have not applied for more credit in the last two years does not mean I have poor credit. I am pre approved for a number of other cards but the loan suits me better to clear the debt for myself, longer period and such a minuscule amount I will barely notice it.

Older_Not_Wiser

Just to add the pre approved cards were Barclaycard and Fluid Card, but those APR’s are not a million miles better than where I am now. So that’s what I mean by I couldn’t get anything else in my earlier post!