Zopa credit card interest rate increasing “in line with Bank of England base rate”

bambilegs

Received an email from Zopa today, informing me that my rate will be increasing from the 10th July. 

It’s a small increase by 0.25% to be exact.

From previous experience, correspondence like this usually gives one the chance to close their card if unhappy with the change, but the email doesn’t provide this.

Usually, I close the card if this happens.

Has anyone else received similar correspondence from Zopa?

Would you suggest closing the card or just sticking with?

I quite like Zopa, I know the increase is small, however, of course, a rate reeducation or just having the same rate would have been preferred.

[Deleted User]

Because it's a contractually agreed change,, you can't opt out of it.

However, you can close the card if you want, to prevent yourself spending more on it.

If you like the card, keep it. And of course, paying interest is optional.

MrFrugalFever

Unless on a 0% promotional rate or another agreed promotional rate, almost all credit card providers will be passing on the base rate increase. Barclaycard for example have a big message when you log in telling you the interest rates are changing.

Amazing how quick companies are to pass the BR increase on when borrowing but when saving it seems to take a while to filter through!

cymruchris

Currently haven't received the notification reference my Zopa card - just had a quick look - it's unchanged at 14.9 percent APR.I imagine it's not a case of their putting up their APR because they see you as an increased risk (the usual reason for doing it) but following what the BOE does instead. I would think that if it was going up because they didn't like you anymore - you'd have the option of opting out and closing the card then, but when it's just the BOE rate going up it's reflecting market movements. Are you carrying a balance? If so, depending on where your APR sits at, you could always look at an alternative card and arrange a balance transfer.

Ebe_Scrooge

bambilegs said:

Usually, I close the card if this happens.

You're quite at liberty to close any card at any time.  You do, of course, need to clear the balance in full before doing so.

Which leads me on to a question.  If you're able to clear the balance, this would kind of imply that you do usually clear it in full every month?  If so, then whatever the APR is doesn't matter, as you'll not be charged any interest.  If, however, you have a large balance that you're unable to clear, how do you propose clearing it in order to close the card?  Balance transfer?  Yes, that's a possibility, although there's no guarantee you'd be accepted for a BT card.

The_Fat_Controller

Same from Amazon/NewDay

You can cancel a card any time, I don't see how you think a rate increase is any sort of trigger.

oldagetraveller1

"but when saving it seems to take a while to filter through!"

Not Zopa, this time. I received a message from them that their instant access savings account interest rate has increased. Only by 0.1% though!