A card that gives you confidence

We asked our members what they wanted from a payment card, and what it was about loans, credit cards and overdrafts that got them down.

The result? Commodo. A flexible line of credit, linked to a convenient debit card. It delivers the flexibility of a payment card, with one simple monthly repayment and safety tools that make it easy to pay off.

19.6% APR, £2000 limit
Representative example

How it works

With a single predictable monthly repayment and repayments straight from your salary, using your Commodo card is hassle-free.

1. Join the waitlist

Commodo is now available to those at the front of the waitlist. To keep our standards of service high, initially applications will be on a first-come-first serve basis.

To join the wait list, leave us your details, and we’ll tell send you a link once everything’s ready.

 

2. 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 unfortunately we’re able to approve your application.

The form will also help you set up payments straight from your salary.

3. 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.

4. Predictable payments

The same amount will come straight out of your pay each month, with the amount depending on your card limit and repayment limit, which are set when you apply for the card.

If you pay in more than you’ve spent, the money is yours to spend, or you can transfer it into your savings. If that happens, you won’t pay interest.

5. Take a holiday

For up to 30 days per year, overseas payments are on us, with no additional charges or fees.

Once a year, you can also arrange a one-month holiday where your repayments will be paused.

6. Auto-land at any time

If your plans change or you want to get back on top of things, you can pause the debit card. You can then pay off the balance as you would any other loan.

Repayments will continue, with the balance paying itself off in 18 months or less.

Keeping you out of problem debt

Commodo is provided by London Mutual, a not for profit credit union. The card include tools that make it easier to keep up with payments, and are designed to keep you out of problems with debt.

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Payments out of your salary

No need to worry about direct debits, standing orders or remembering to pay on time.

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Balance by text

Know where you stand. Get your balance at any time with a simple SMS.

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Save as you go

The option to pay in more than you borrow, making it easy to build savings.

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Gambling block

Betting and online gaming sites blocked by default.

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 covers more than what you owe, the money you’ve paid in is still yours to spend later, or, if you prefer, we can transfer it into your savings.

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.

What happens if I move jobs?

Moving to another employer may mean we can no longer take your payment directly from your salary, but you can remain a member of the credit union. You should let us know as early as possible so that we can arrange an alternative way for you to make payments, such as via direct debit.

Is my application likely to 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 be affected?

hen you apply, we’ll use a credit agency to check your ID against public records such as the electoral roll. We’ll conduct this as a ‘soft’ search, which means that your credit file won’t be negatively affected if your application is not approved.

If you are approved for a card, how you use the card will have an impact on your credit score. Borrowing and keeping up with payments builds credit. Because we make it easy to repay, this card could therefore 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 other providers in future. 

Building a better bank

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. 

Our branch on Rye Lane in Peckham, which also serves as our HQ. Look out for our other branches on Walworth Road, and in Acre Lane in Brixton.

Interested?

If you’d like to join the waiting list for Commodo, simply leave your details here.

To keep standards high, this product is currently invitation-only, on a first-come-first served basis, so we’ll send you an application link as we’re ready to welcome you..