a fair and simple alternative to credit cards
Repay directly from your salary
Safety features to keep you out of debt
From a not-for-profit credit union
Apply without affecting your credit score
Representative example: 19.6% APR, £2,000 limit
Commodo is available to employees of over 25 local organisations, with more being added all the time.
How it works
With a single predictable monthly repayment and repayments straight from your salary, using your Commodo card is hassle-free.
Join the invite list
To keep standards of service high, applications are currently invite-only. If you’d like to apply, just leave your details at the bottom of this page, and we’ll email you with a link when we’re ready to welcome you.
Apply and set up
Before we can issue you your card, we’ll ask you to complete an application for the loan. Because we do a ‘soft’ credit search, it won’t hurt your credit score, even if we’re unable to approve your application.
Spend using your card
Use your Commodo card anywhere a MasterCard debit card is accepted. Debit card transactions are all included, with a small charge for ATM transactions. Interest is an attractive 19.6% APR.
Salary deducted repayments
The same amount will come out of your pay each month, based on your card limit. If you pay in more than you’ve spent, the money is yours for when you need it, and you won’t pay interest.
Take a holiday
For up to 30 days in a year, overseas payments are on us, with no additional charges or fees. Once a year, you can also request a one-month holiday where your repayments will be paused.
Auto-land at any time
If your plans change or you want to control your spending, you can pause the card, allowing you to pay down the balance. Repayments will continue, with everything paid off in 18 months or less.
Answers to Your Questions
Who is eligible to apply?
Currently, Commodo is only open to existing members who are registered for payroll deduction (with savings or loan repayments taken from your salary).
As with any type of loan or credit, availability will also depend on your individual circumstances, including your other financial commitments and ability to repay.
What does it cost?
Your single monthly payment is the same each month, regardless of how you use the card. It includes your loan repayment, any fees, as well as interest, which is charged at 19.6% APR.
Your monthly payment is calculated as 1/18 of your agreed credit limit, plus interest. As an example, with a credit limit of £2000, your monthly payment would be approx £130 per month.
Why pay the same every month?
Paying the same amount each month makes it easy to budget and plan your finances. It also means you’re never more than 18 months away from paying off your balance in full.
If your monthly payment is more than what you owe us, the money you’ve paid in is still yours to spend later, or, if you prefer, we can transfer it into your savings.
What if I change employer?
Moving to another employer may mean we can no longer take your payment directly from your salary (unless your new employer also offers salary deduction with us).
You will remain a member of the credit union, but will no longer be eligible for a Commodo card. After your leaving date, you will no longer be able to use your card. Any balance left on the account will be converted into a loan with us (at the same rate of APR) and repayments will continue via direct debit. To make sure this all happens smoothly, please let us know if you are changing employer as soon as possible.
Will my application be approved?
All applications will be considered by an expert member of our loans team, rather than by a computer or automated process. We think that’s fairer, because everyone is different and it allows us to get a fuller picture of your circumstances.
When considering your application, we’ll look at your previous credit history as well as your income and other financial commitments, to ensure the card is the right fit. Taking repayments directly from your salary means more security for us. This usually allows us to offer greater flexibility and better rates than other providers.
How does payroll deduction work?
When you apply for Commodo, we’ll ask for details including your National Insurance number. If you work for one of the 25+ local organisations with whom we have a partnership, we will then provide your details to their payroll department, who will arrange the deduction on your behalf.
The deduction will usually appear on your payslip alongside national insurance, income tax, pension and any student loan repayments.
Will my credit score be affected?
When you apply, we’ll use a credit agency to check your credit status. We’ll conduct this as a ‘soft’ search, which means that there will be no record on your credit file if your application is not approved.
If you are approved for a card, we will regularly update credit reference agencies with information about your outstanding balance and repayments. Staying up to date with repayments is likely to have a positive impact on your credit file.
Because we make it easy to repay, this card may be a good way to build your credit score. On the other hand, missing or falling behind with payments will hurt your score, and may make it harder to get credit from us or other providers in future.
Is this a credit card?
No. Commodo is a debit card associated with a revolving loan facility, and is not a credit card.
One way to think of it is as both a loan and a current account. The loan is prearranged, and available to you whenever you need it, up to an agreed limit.
When you apply for the loan, we will also set you up with a credit union current account specifically for this purpose, through which you can access the borrowed funds. You can then access it whenever you need, using the debit card provided.
About London Mutual Credit Union
Commodo is provided by London Mutual Credit Union, a not-for-profit community bank which is owned by our customers.
We were founded by employees of Southwark Council in 1982. Since then, we’ve had one mission: serving our member communities by providing fair and ethical financial services that are relevant to their needs.
London Mutual Credit Union’s branch on Rye Lane in Peckham, (also our HQ). Our other two branches are on Walworth Road, and in Acre Lane in Brixton.
To keep standards of service high, Commodo is currently invitation-only. It’s first-come-first served, and we’ll send you an application link once we’re ready for you.
If you’d like to join the invite list for Commodo, leave your details with us here.