Bank offers to pay a day early?

Prototype321

Prototype321

Prototype321

Associate
Joined
25 Dec 2021
Posts
67
Location
North Lincolnshire
I've recently signed up with Monzo and my pay is due to hit my account tomorrow, I just logged into my banking app and saw a message saying if I come back at 4pm they can advance my pay a day early.

Are there any cons with this? IE since it is considered an advance will this affect credit ratings? Or show as an advance instead of my pay maybe affecting things if I try to apply for any credit in the future and they use open banking to do checks?

I'm fairly new to the country so trying to do everything I can do to build a credit score, I don't want to affect it by just not waiting a day.
 
Prototype321 said:
I've recently signed up with Monzo and my pay is due to hit my account tomorrow, I just logged into my banking app and saw a message saying if I come back at 4pm they can advance my pay a day early.

Are there any cons with this? IE since it is considered an advance will this affect credit ratings? Or show as an advance instead of my pay maybe affecting things if I try to apply for any credit in the future and they use open banking to do checks?

I'm fairly new to the country so trying to do everything I can do to build a credit score, I don't want to affect it by just not waiting a day.
Click to expand...
The only "con" is that you've now added a day until you get the next pay, or if you use the "pay early" feature again, which is no longer early because you took this month's early :p

Monzo allow it as the BACS payment for your salary is already set for the account, so it's not credit or anything like that. In Starling, you see it as a pending credit the day before so you know it's going in. Also, credit scores mean nothing in this country, so don't get hung up on it.
 
squerble said:
Also, credit scores mean nothing in this country, so don't get hung up on it.
Click to expand...
Maybe that's the case of you have a good credit score already. When appliting for rentals aince i had no prior credit history here a lot of landlords wanted 3 months rent upfront. We also hope to buy a house in the next 12 to 18 months so credit scores will definitely matter. To help build it I will need tp apply for a credit card and phone contract but my credit score is too low atm, so will look at a foundation credit card soon.
robfosters said:
No cons at all. During the week it doesn’t make much difference, but it can be handy if you get paid on the first Monday of every month.
Click to expand...
Yep pressed the button and have the moolah. Woo
 
Prototype321 said:
Maybe that's the case of you have a good credit score already. When appliting for rentals aince i had no prior credit history here a lot of landlords wanted 3 months rent upfront. We also hope to buy a house in the next 12 to 18 months so credit scores will definitely matter. To help build it I will need tp apply for a credit card and phone contract but my credit score is too low atm, so will look at a foundation credit card soon.

Yep pressed the button and have the moolah. Woo
Click to expand...

I mean credit score alone, i.e., the numbers you see on ClearScore, Equifax etc. The numbers themselves mean nothing, as a lender will have their own assessment and eligibility criteria. But in your case yes, building credit history will be important.
 
Nobody means credit score as the score itself; they mean it as a proxy to a "good credit record".

People parroting credit scores mean nothing are as bad as people who pipe up when folks incorrectly say road tax instead of VED.
 
Credit scores are a quick and easy way of seeing how good your credit record is.

The higher your credit score, the more likely you are to be approved for finance from various companies. I’ve experienced this first hand.
 
robfosters said:
Credit scores are a quick and easy way of seeing how good your credit record is.

The higher your credit score, the more likely you are to be approved for finance from various companies. I’ve experienced this first hand.
Click to expand...
Exactly, yes whilst most companies won't say you need to have xx credit score they will have criteria which closely matches the same criteria as the credit score companies. So in basic terms if my score goes up on these tools then my chance of getting credit roughly goes up to, hence still useful
 
GaryTheSnail said:
Not sure why it makes it better though because it's only 1 day. In grand scheme of things I don't think it matters.
Click to expand...
Handy when pay day lands on a Monday and instead you can have your money for the weekend. I get that it'll benefit people in different ways though.
 
GaryTheSnail said:
has to be paid back a day after though with real wages so what’s it matter. I the end it’s 1 day.
Click to expand...
Of course it does, but some people don't think that way with credit.

In all seriousness I agree it's only one day, not that big of a deal, but I can see times when it could be useful especially as suggested if payday is a Monday. I've also come from fortnightly pay to Monthly so that is an adjustment. Going back a few years ago where we lived more pay check to pay check sometimes if there were a lot of bills an early day would have been very useful.
 
You must log in or register to reply here.
Back
Top Bottom