UK banks Monzo and RBS are to enable customers to check their approval ratings for loan applications by looking up their credit score for free through the mobile banking app.
Customers of RBS can now check their chances of being approved for borrowing in their banking app. Natwest customers will be able to do the same from March 10th.
Meanwhile, digital challenger Monzo will be offering free credit checks to its customers by the end of March.
This will allow customers to check their eligibility for credit cards, loans and mortgages without having to visit reference agencies like Experian or Equifax.
Both these agencies offer free trials but thereafter charge a monthly fee of £14.99 and £7.95 per month.
Monzo rolled out a range of flexible loans in August last year, offering between £200 and £15,000 over periods of up to five years. The ability for customers to check their credit score on the fly before applying for a loan is seen as a value-added incentive by the challenger, which is under pressure to raise revenues and move closer to profit.
RBS and Monzo’s credit scoring will use data from credit reference agency, TransUnion. This is not as widely used by banks as Experian or Equifax, so it is possible that the service will offer only a snapshot to a customer of their credit score, as opposed to a firm indication of what any actual decision would be.
