What’s a credit score vs credit history?

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

How can I access Credit Builder?

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.

How Credit Builder works

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!

How much can I borrow on Credit Builder?

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](https://support.monese.com/hc/en-gb/articles/4409215668370 "What does affordability check mean?"). 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.

What happens if I miss a Credit Builder repayment?

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.

Grow your credit score with Monese Credit Builder

Start building your financial future today.

The benefits

1
Want to buy a house? A car? Get a credit card? You’ll need a great credit score.
2
Don’t have a good score or much credit history? Credit Builder is the way to grow it!
3
Set up 12 monthly payments and choose how much to pay each month*.
4
When you pay on time each month, we’ll tell the Credit Agencies.
5
The Credit Agencies will see how reliable you are and increase your credit score.
6
Choose to get all 12 payments back at the end – and get to keep your amazing new credit score!

Missed payments could negatively impact your credit score

Improve your credit history for just £2.50 a month (Rep APR 9.10%)*

Build your credit history hassle and interest-free, with no credit checks or the need to apply for a high-interest credit card, with the Monese Credit Builder, available on all plans for customers in the UK.

**Representative APR: The loan, as a part of the Credit Builder service is a 0% interest loan, but in financial jargon the £2.50/month subscription fee relates to a 9.10% APR as that is the cost of your Credit Builder. This is based on a loan amount of £600.

Build your savings along with your credit history

The way our Credit Builder is set up, you’ll be saving while building your credit history all at the same time. After a year of monthly repayments on your interest-free Credit Builder loan, you’ll have 12 months of successful repayment history recorded with the credit agencies, plus 12 months of savings ready to spend!

Improve your record where it counts

All UK lenders get information on you from one of these 3 Credit Agencies: Experian, Equifax and TransUnion. We report your monthly repayments to all 3, so you’re covered on all fronts!

Boost your budget by up to £300

With Monese Boost, you can choose past card transactions up to £300 to pay back later. It’s another great way to show how reliable you are and boost your score even further!

Your Monese Boost limit is underwritten alongside your Credit Builder. As soon as you make your 4th Credit Builder payment, your Monese Boost limit unlocks and helps grow your credit score even more quickly!

How Monese Boost works

Make a payment
Pay for something with your Monese card (upto your Monese Boost limit)
Boost it
Choose to reverse the transaction within 14 days using Monese Boost
Get it back
Get that money back in your account straight away!
Choose how to repay
Pay the amount back in 3, 6 or 12 monthly instalments*

*29.9% APR representative variable

Representative Example: Based on a credit limit of £150, the total amount payable if you spend your limit of £150 immediately and repay the amount over 12 monthly instalments is £175.40

FAQs

What’s a credit score vs credit history?
How can I access Credit Builder?
How Credit Builder works
How much can I borrow on Credit Builder?
What happens if I miss a Credit Builder repayment?

For more Credit Builder FAQs

Start building your credit score today

Download our app to get started on your credit journey in the UK. Make the first move towards a better financial future today.

This service is arranged by Monese Finance Ltd. Monese Finance Ltd is a broker and not a lender, and is an appointed representative of Resolution Compliance Limited which is authorised and regulated by the Financial Conduct Authority (FRN:574048). The credit builder loan is provided by Monese Credit Limited which is authorised and regulated by the Financial Conduct Authority (FRN:787052)