How Monese Boost works

Your credit score is a measure used by financial institutions and banks to rate your ability to pay back potential loans or credit you take based on your credit history. It measures how well you handle your financial commitments. The higher your credit score is, the better credit offers you may receive from potential lenders.

Your credit history is your repayment history on credit commitments over the last six years and is used to determine your credit score. It may include the number and types of credit accounts, amount of available credit you’ve used and number of recent credit enquiries. It’ll contain details on your:

• regular repayments
• amounts repaid
• outstanding amounts
• number of creditors

Credit Builder is available on all plans for £2.50/month to all UK-based customers with a Monese GBP account and aged between 18–75. If you’re eligible for the Credit Builder, you’ll see the option in your Monese app under the Explore section: Monese app > your GBP account > Explore tab > Credit Builder.

Right in your Monese app, you’ll be able to choose a fixed amount to repay each month, between £30 to £100. Depending on the amount you pick, we’ll use this to create an interest-free Credit Builder loan and lock this away in your Credit Builder pot. Your Credit Builder loan is equal to 12 months of your repayments. So for example, if you decide you can afford to repay £30 per month for a year, this will result in a total loan of £360 in your locked pot. This pot will only be unlocked following your last (12th) repayment.

As you pay off your interest-free credit builder loan each month, you work towards getting your Credit Builder pot unlocked. We’ll report these monthly payments to the three UK credit agencies to help build and improve your credit history and score. After a year, your interest-free loan will be fully repaid. This means you’ll have 12 months of successful repayment history recorded with the credit agencies, and your pot will be unlocked, ready to spend!

Right in your Monese app, you’ll be able to choose a fixed amount to repay each month, between £30 to £100 for a minimum borrowed amount of £360 to a maximum of £1,200.

The amount of your interest-free credit loan (i.e., what you borrow) should be driven by how much you can realistically commit to repay monthly and should never be higher than your monthly disposable income. A higher amount doesn’t necessarily mean you’ll have a better credit score. The best value of the Credit Builder lies in being able to make your repayments on time, without any financial difficulties.

If you miss a payment, we’ll need to report your account in arrears to the credit agencies. We’ll give you the ability to catch up on one missed payment, but missing payments can have a big negative impact on your credit score and history. If you miss two consecutive payments, we’ll close your Credit Builder automatically and return all the payments you’ve made to your Monese GBP account. This is a safeguard to make sure your credit history isn’t as severely impacted.

If your circumstances change and you can’t make any more payments, then we recommend closing your Credit Builder loan in your Monese app as soon as possible. Missing repayments will make potential lenders believe that you’re not able to keep up with commitments.