Unsurprisingly, we think that the traditional revolving credit card is well overdue for a reinvention! What frustrates you most about the experience you have with your current card?
Poor integration with Monzo since I went full Monzo
The lack of ability for instant balance updates.
Like the new fintech current account model, this is reflected on a balance immediately ; traditional credit cards take a few days to update the balance.
Legacy interest rates and cost Associated for the credit card
Would it ever be possible subscription for the card or a flat monthly fee
I’m new here so go easy on responses
Everything. Why can’t they make a credit card which is as simple and intuitive like Monzo (Debit card). Ability to track the payment, budgeting feature on the card. That will be lovely
That you are unable to transfer money to your bank account
- not much visibility on spending
- poor interface for the app
- no way of summarising what I spend money on in categories
- hard to integrate with other apps I.e Yolt where I like to have an overview on all my accounts
That’s a sign of very poor money management and is probably why they wouldn’t want to do it. Credit isn’t for paying your bills, it’s for buying things.
That and you could fraudulently sign up for credit cards in someone else’s name, get their account and withdraw all the cash and then leave them to sort out the mess, with no paper trail of where the cash is.
But as for what I’m fed up with about my credit cards:
- They want to send me a letter and have me print off evidence for a chargeback, mailed back to them
- They want to charge me insanely high interest rates (22.9-54% depending on the card, 54% being Aqua Rewards) although as I pay this off it isn’t too much of an issue
- Unrealistic limits, too low to be useful for anything; (Aqua Rewards gives me £300 which I couldn’t even book a flight on)
- Lack of contactless payments (and mobile wallets)
- Embossed numbers. My leather wallet doesn’t like having an imprint that now needs to be filled by another embossed card else it’ll fall out
- Lack of an empowered live chat (anything of note must be done by calling up)
- FX fees (in the case of my AmEx card)
- Lack of rewards schemes such as cashback or Avios etc (post interchange cap)
Lack of sensible underwriting.
As an example, I’ve got Aqua Reward with a £2k limit for well over a year (and held the account for 3 years in total, steady increases up to the £2k). Suddenly it’s chopped down to £400.
When I query why, it’s because of “adverse” - but they can’t tell me more. The only adverse is historic, drops off in a matter of months and they knew about it when I opened the card and when they increased the limit 3 times!
Perfect payments for over 5 years, no significant debt etc. They’re just genuinely a pain to deal with.
So some kind of integration with customer’s online banking if you’re planning to cut limits / give low limits would be ideal. Use Open Banking/API to scan a customer’s account(s) and come up with a common sense decision.
Appreciate some people will always be unhappy if they don’t pass scoring / don’t get a high enough limit etc, but providing ‘alternative’ underwriting & some reasonable information as to why a decision has been made would also be good, not just “computer says no” or a reason which completely contradicts the account history.
I know N Brown Group (e.g. JD Williams, Jacamo and co.) offer quizzes etc which are ment to help low scoring users prove they are financially stable (various questions and it scores the answers, and can detect people trying to game the system). My friend was accepted with them with a very poor credit history - but with that account on her file is starting to improve her future prospects.
+Social inclusion - even if that means high initial APR, offering a way to reduce the APR as credit rating improves & risk decreases.
188Money offer this, but it’s only good for users that completely max the card out. £8pm for a £250 limit for poor credit scores. Slightly better value for people with decent credit.
Personally, I think a monthly fee is a bad idea as it encourages you to spend more to ‘make use’ of your fee and also revolve the balance month on month and not pay it down.
With my ‘work hat’ on - people with these 188 cards that are maxed out are also destroying their credit record, so when they’re credit scored they’re going to look appalling - 90% utilisation is shocking and they’ll never be able to then move away to a ‘normal’ card if they keep that up. Especially if they already have adverse!
So it’s certainly been done, but I think the reason it’s not more heavily done is because I can’t imagine it being very good PR (e.g. https://www.thisismoney.co.uk/money/cardsloans/article-5673985/118118-Money-launches-new-credit-card-charges-no-interest.html).
I’m surprised the FCA haven’t clamped down on them to be honest, I struggle to see how they’re treating customers fairly with that charging structure.
Better than PayDay loans though!! Silver lining and all that…
What frustrates me is it’s just access to money.
It’s a card, an app, a website and a bank branch in some cases. There’s nothing special to it except from borrowing and being ripped off at the end of the month if you don’t pay in full.
There’s no fun in it
the lack of control of exactly how your money is used. Namely making a fairly big purchase then paying in way over minimum payment intending that purchase is paid off only to have them decide your purchase went into a pot and you end up paying off part of a whole figure. In short exactly what this promises - if I ever move up the dreaded queue
High interest rates
Lack of instant notification
Fees (yes you Tandem!)
Lack of innovation
No integration with other banking apps
Poorly designed cards - choice of colours and designs would be nice!
Lack of Apple Pay integration
I have high hopes for Tymit - I hope you can address some of the frustrations!