From Cahoot to Zopa... no thanks

mikiex

I tried Zopa as a place to move my cahoot loan to.
I signed up, was not impressed the website - it has
some odd confusing wording etc.

Besides they would only offer me a C rating which meant
my loan would of be 11.5%

The original thing that attracted me to Zopa was low rates/flexible
and some of the money goes to normal people rather than the banks.

Pretty rubbish rate, I did'nt have a problem getting the lowest rate
elsewhere -so they must be pretty harsh on thier credit scoring.
Which is at least a good sign for people wanting to invest money
there.

Mikie

Phantom_Flan_Flinger

At the time when I was looking for an 11K loan, Zopa were offering rates from 5.2%.

I did get an A rating, but they offered me 7.9%, so I went to Northern Rock at 5.7%.

I did get a courtsey call from someone at Zopa next day enquiring why I hadn't proceeded with the loan. Does make you wonder if they really offer anyone their lowest rates.

[Deleted User]

mikiex wrote:

I tried Zopa as a place to move my cahoot loan to.
I signed up, was not impressed the website - it has
some odd confusing wording etc.

Besides they would only offer me a C rating which meant
my loan would of be 11.5%

The original thing that attracted me to Zopa was low rates/flexible
and some of the money goes to normal people rather than the banks.

Pretty rubbish rate, I did'nt have a problem getting the lowest rate
elsewhere -so they must be pretty harsh on thier credit scoring.
Which is at least a good sign for people wanting to invest money
there.

Mikie

Presumably 11.5 is still better than the cahoot rate though? It's certainly lower than mine was. Based on my understanding of Zopa, the more you borrow, the higher the rate (as they need to use funds from lenders offering higher rates for bigger loans) so may be worth just moving half across? Alternatively there are no early repayment charges so you could use it until a better loan is available to you. Think there's a 30 or 50 incentive for joining too which would offset some of the interest.

mikiex

anactuary wrote:

Presumably 11.5 is still better than the cahoot rate though? It's certainly lower than mine was. Based on my understanding of Zopa, the more you borrow, the higher the rate (as they need to use funds from lenders offering higher rates for bigger loans) so may be worth just moving half across? Alternatively there are no early repayment charges so you could use it until a better loan is available to you. Think there's a 30 or 50 incentive for joining too which would offset some of the interest.

There is a sweet spot around 2.5 - 3k where the lowest rates are
on Zopa

Also 36months is the best period I think

My Cahoot loan is £2600.

There is no way I would get a loan @ 11.5%

I applied for an egg money card which is 7.9% , I'd rather it be on that
while I decide what to do with it than in zopa

I'm already Credit Card Tarting, I may well do that or shift it all onto
the M&S low rate for transfers card.

I really don't have much problems getting credit at a low rate,
thats why I was supprised I got such a bad rate at zopa.
But maybe that is a good sign if you intend to invest as
your money should be pretty safe

charlie320

I was looking at putting some of the money i have in my savings accoutn across into zopa to lend out. Just not sure though, with base rates going up there's not that much difference unless i look at lending to the more high risk borrowers... has anyone had any experience on the other side of the fence lending rather than borrowing?

mikiex

I will say, with my experience of being classed as a "C"
when I am considered low risk by others and have a good credit
record and have a well paid job.... I think the highest risk group
are fairly safe to invest in. Also doesnt you money get spread across
debits ?