Quick question about Zopa borrowing

ferry

Just a quickie...Is it generally harder to obtain a loan from Zopa lenders than any other High Street lenders..?

Ferry

[Deleted User]

dont think its that easy from either atm depends on how good a risk you are???

jamesd

Zopa declines something around 80% (depending on market and the rules at the time of applying) of the 50% or so of the population that can pass the initial part of the application process and get a personal rate quoted to them. Zopa uses only a quotation search until the loan application is accepted, so a decline will leave only a quotation search on the credit record and that should have little to no effect on credit score.

Zopa doesn't give figures for how many are turned down before getting the personal quote and the 80% figure is an approximate number based on my own experience and generalisations from Zopa, since Zopa doesn't publish that number either.

It's likely that most high street lenders will accept a higher proportion of applicants. Easy ways to get declined from the Zopa markets include having unsecured debt greater than 50% of income, having recent unsatisfied CCJs or not having much visible credit history.

Declaration of interest: I both have loans via Zopa and offers to lend via Zopa, though the lending offers are currently unlikely to be taken up.

michael1983l

I recently got rejected from Zopa with available credit usage at less than 40%. My credit to income at less than 10% and all accounts up to date. Zopa is strange. Is there any alternative companies based on the same model?

jamesd

None I know of that trade in the UK. If the loan would have taken you over 50% that would also probably have been enough, even if it was for debt consolidation. Probably is there because Zopa hasn't been explicit about a 50% limit so it's not known exactly what it is or if there's a hard limit.

0% balance transfer credit card deals are usually a better deal for those who can get them. Offers like Virgin's from place like Virgin that will let you transfer cash into your current account. Sixteen months but you can probably get a repeat balance transfer offer or transfer to another card when that runs out.