Monzo Flex for very little credit history

cmaryd

Hello! I’m a current student. Looking to build some credit history over the next few years. I’ve got my own phone plan, have direct debits set up for bills and pay things on time. I’ve had a look, but am not eligible for many credit cards at all because I am a student so my income is low. I am eligible for Monzo Flex, however. I’ve always been really wary of Buy Now, Pay Later schemes but am beginning to consider if it’s worth taking out a Monzo flex account to take on and then pay off some credit to help build my history up. It’s a low limit so I know I would always be able to pay off my balance on time, and the ease of use (linked to my Monzo account already) would also help! Keen to hear from others for a bit of advice - should I take this on or avoid and explore other ways to build up my history?

TakeittotheLimit.

Is your Phone on contract or pay as you go? If it's on contract and you pay it every month then that helps towards building your credit score up.

Monzo flex is okay as well so long as you make sure you pay it off in the time frame specified and don't miss any monthly payments.I don't see a problem with it.

WillPS

Not too familiar with Monzo Flex. Does it report as a credit card? Can you put any charge on it, and clear in full month to month paying no interest?

If the answer is yes to both, and you wouldn't be tempted to use it otherwise, then get it and stick Netflix or Spotify on it.

If you're concerned that you'd be tempted to use any credit available to you, I'd advise against getting it.

cymruchris

Have you got an HSBC current account? (Not that you need one but it might help) as they have a credit card specifically for students and would be a better option than Monzo Flex - don't take out credit and get charged for it just to improve your history. You only need to do free things to demonstrate your postiive behaviour.

Have a look at the HSBC card: https://www.hsbc.co.uk/credit-cards/products/student/

WillPS

cymruchris said:

Have you got an HSBC current account? (Not that you need one but it might help) as they have a credit card specifically for students and would be a better option than Monzo Flex - don't take out credit and get charged for it just to improve your history. You only need to do free things to demonstrate your postiive behaviour.

Have a look at the HSBC card: https://www.hsbc.co.uk/credit-cards/products/student/

TSB also have one: Student Credit Card | Credit Card | TSB Bank

I don't think there is a charge for Monzo Flex if you clear it?

jimroy

WillPS said:

Not too familiar with Monzo Flex. Does it report as a credit card? Can you put any charge on it, and clear in full month to month paying no interest?

If the answer is yes to both, and you wouldn't be tempted to use it otherwise, then get it and stick Netflix or Spotify on it.

If you're concerned that you'd be tempted to use any credit available to you, I'd advise against getting it.

It’s classed as ‘Other’ on CreditKarma/Transunion and ‘BuyNowPayLater’ on the other ones. It’s not listed as a credit card. And it doesn’t look good using them on your credit file regularly. It affects your credit score. It’s better to have a credit card.

WillPS

jimroy said:

WillPS said:

Not too familiar with Monzo Flex. Does it report as a credit card? Can you put any charge on it, and clear in full month to month paying no interest?

If the answer is yes to both, and you wouldn't be tempted to use it otherwise, then get it and stick Netflix or Spotify on it.

If you're concerned that you'd be tempted to use any credit available to you, I'd advise against getting it.

It’s classed as ‘Other’ on CreditKarma/Transunion and ‘BuyNowPayLater’ on the other ones. It’s not listed as a credit card. And it doesn’t look good using them on your credit file regularly. It affects your credit score. It’s better to have a credit card.

I agree, that'd make it a 'no' in terms of credit building.