With a lot of the app features dependant on categorising the dozens debit card transactions, what are your thoughts on the fact that many people, like myself, use a credit card for their day to day purchases for the extra protection it provides?
Hey @Rhydian, I actually think this is where Dozens could separate itself for certain customers (like me and you), who do most of our spending on credit cards.
It’s always been the issue for Monzo or Starling, because all of the new features that are introduced, the spending insights, the budgeting stuff, all relies on the account being the primary spend account.
So a huge chunk of those apps are useless to the likes of myself (and you), because our spend goes elsewhere.
I’ve seen people ask for a pot that automatically moves money from your balance, to a “credit card pot” whenever you spend on it. But for me, I move all of my money into savings at the start of the month, and then move it back when I need to pay a bill (so this wouldn’t work for me).
I honestly don’t see how an integration can work (short of simply displaying your current credit card balance in your current account app).
But… Dozens has the potential to link your overall wealth together. From current account, to savings and investments etc. It feels more “wholesome” than a simple current account.
Despite the “integrations” from both Starling and Monzo, I still don’t feel like they are very good, so I’m hoping Dozens can bridge this gap, and make it all seamless.
As for the credit card issue, is there a way that you would like to see it work?
Yes i agree @Nick. It’s a shame we would miss out on many of the app’s features. If dozens eventually offered their own credit card, then presumably they could use its data in a similar way to their debit card, thus solving the integration issue and demonstrating that dozens is a comprehensive banking solution.
I’ve seen people ask for a Monzo or Starling credit card as well for the same reasons.
I guess it depends what people are currently using, but I think any of the new FinTechs would struggle to topple the best credit cards (AMEX for me).
So even if they had one, I doubt I’d simply use it for the budgeting type features.
Although I’m sure plenty of others would
This is a very interesting point. Do you know exactly what those protections are? Have you ever had to make a claim based on this? I only ask because I wonder whether the costs of credit cards offset these benefits?
I’ve done the same in the past, so I’m not criticising this approach at all. However, I wonder whether the benefits of much better tracking (since my credit card does NOT offer me a reasonable app) and budgeting, plus encouragement to save, will quickly wipe out any cost of losing this coverage.
While there are many who find a way to use credit cards to their advantage, these cards only currently exist because there are a much greater number who do not - and that is why borrowing on credit cards (plus personal loans and car finance) has risen above £200 billion.
Yes @robert I have a fair idea of the protections so therefore I am considerably more comfortable spending with my credit card rather than my debit card. It was also invaluable in helping me build a decent credit score in order to obtain a mortgage.
I automatically pay off my credit card in full every month so incur no costs. While I realise that some people build up debt, it’s not a reason for others not to use a credit card.
Your point regarding credit card apps not offering effective tracking solutions was precisely why I suggested a dozens credit card would be advantageous, although I realise that this might contradict your tagline of ‘we only make money when you do’!
I am the same, rewards from my credit card are great, so I miss out on the categorisation usually and just have the Direct Debit once a month.
I have a credit card too. However it’s now only used for online purchases or bigger items. I was very naively led to believe that I would have more consumer protection for my purchase credit card purchase than I would it the same purchase was made using a debit card payment. If my debit cards offered more protection I’d do away with the credit card altogether.