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Challenger Banks - do they disadvantage you?
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PRAISETHESUN said:Barkin said:Off the top of my head, and without thinking too hard, the only disadvantage (if it is a disadvantage...) that I can think of is that I won't be around for long enough to build the 40-odd year relationship with Starling that I have with my main high street bank.
I mean given your credit files only show the last 6 years of data anyway, lenders won't be able to see that you've held an account with a given provider for any longer then that I'd have thought - 6 years and 1 day vs 40 years would look the same to them. Of course, Starling (or whoever else you hold accounts with) will know and can use that information how they see fit, but other lenders wont. Not really like loyalty gets rewarded these days though...
I don't know how much other companies can see, but when I look on Credit Karma my Halifax account has a start date of 2012 listed. I'd have thought that lenders would be far more interested in how well you mananged recent credit repayments than just staying with one particular bank.
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PRAISETHESUN said:Barkin said:Off the top of my head, and without thinking too hard, the only disadvantage (if it is a disadvantage...) that I can think of is that I won't be around for long enough to build the 40-odd year relationship with Starling that I have with my main high street bank.
I mean given your credit files only show the last 6 years of data anyway, lenders won't be able to see that you've held an account with a given provider for any longer then that I'd have thought - 6 years and 1 day vs 40 years would look the same to them. Of course, Starling (or whoever else you hold accounts with) will know and can use that information how they see fit, but other lenders wont. Not really like loyalty gets rewarded these days though...0 -
Barkin said:Off the top of my head, and without thinking too hard, the only disadvantage (if it is a disadvantage...) that I can think of is that I won't be around for long enough to build the 40-odd year relationship with Starling that I have with my main high street bank.Unfortunately you probably value that 40 relationship a lot more than the bank does.Unless you've opened a new current account(s) with them more recently, are they even reporting your information to the CRA's?0
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The only thing I can think of is that banks like Kroo and The co-operative bank don’t allow you to use Open Banking and this may impact your ability to use budget managing apps like Snoop etc but in general it should be fine. I’m not sure if Kroo show on your credit report as I’ve opened one in the past few months. They seem decent so far apart from the lack of open banking and current account switching service access.0
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steven141 said:The only thing I can think of is that banks like Kroo and The co-operative bank don’t allow you to use Open Banking and this may impact your ability to use budget managing apps like Snoop etc but in general it should be fine. I’m not sure if Kroo show on your credit report as I’ve opened one in the past few months. They seem decent so far apart from the lack of open banking and current account switching service access.
The Co-operative Bank do allow open banking now. They were very late to the party though, and as a result there are less integrations which support them.
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I have been with Monzo since the pre paid card days, known then as Mondo, I think that's 7 or 8 years. It's also my main bank account. I have starling because starling does for free what Monzo charge for and I have NatWest account.No idea how they positively or negatively affect my credit worthiness as my money management skills are pants lol so my credit worthiness has always been in the gutter. Although I do have the Monzo flex so it must have been good at some point.0
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Section62 said:Barkin said:Off the top of my head, and without thinking too hard, the only disadvantage (if it is a disadvantage...) that I can think of is that I won't be around for long enough to build the 40-odd year relationship with Starling that I have with my main high street bank.Unfortunately you probably value that 40 relationship a lot more than the bank does.Unless you've opened a new current account(s) with them more recently, are they even reporting your information to the CRA's?
FWIW I've only ever had that one current account with that bank. And yes, it is reporting to the CRAs0 -
Wouldn't the Monzo credit card (Flex) affect things?
I keep seeing people on Reddit and places like that saying that it shows as a BNPL product. My credit reports all seem to show it as a credit card but I'm being put off using Flex in case it shows up as a BNPL product like Klarna or something0 -
TwiceNightly said:Wouldn't the Monzo credit card (Flex) affect things?
I keep seeing people on Reddit and places like that saying that it shows as a BNPL product. My credit reports all seem to show it as a credit card but I'm being put off using Flex in case it shows up as a BNPL product like Klarna or somethingI have flex and it doesn't show as bnpl on my credit file. I think it's like how a credit card looks. Shows how much of my balance I'm using, although because I pay it off regularly it sometimes doesn't show a balance.I was just thinking, would it be different if you choose the other options. It's pay the whole balance on this day or pay in 3 installments or the pay in 9,12,24 installments. Maybe someone else will know because I have mine set to pay off on a certain day.
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