Zopa CC (if you’re considering one)

MrFrugalFever

Hi all,

Just thought I’d share my initial experience of Zopa and their app/CC application.

I decided to download their app so I could open a smart saver, I like the idea of the pots and boosted rates (let’s hope they actively increase rates in line with the BoE BR change!).

Upon downloading the app and setting up savings account it provided me with their internal scoring affordability, letting me know if I was eligible for any of their products and providing I was happy with a soft search every 14 days they would continue to operate this service. Doesn’t bother me none as a soft search is irrelevant anyway so I signed up to it.

I was ineligible for a loan (don’t want / need anyway) but I was eligible for a CC.

I needed to increase by amount of accessible credit to lower utilisation (only have £250 vanquis and still no sign of increase after a year and £1,500 Cap1 - max. Limit apparently), so decided to apply as was pre-approved apparently.

They have provided me with £5,000 limit and 14.9% (this may change now due to BR increase). Was quite pleased.

As always, it will be a small spend and pay in full each month, but nice to know it’s a reasonable APR as far as credit cards go!

Application took all of 5 mins, had to take picture of DL front and back and a quick selfie, all approved within 20 minutes.

cymruchris

I had a fairly similar experience. Also initially not eligible for a loan (again like you didn't want one or need one) - and on their score thing I was 5/10 even though in the individual categories I was 'Great' on everything. When I downloaded the app originally it was to see if I ever qualified for a loan even though I didn't want it - more for curiosity.

Then one day I noticed that the app said I was pre-approved for a card at 14.9%, which is now my lowest APR card (I did get a message a few weeks ago saying that it will go up to 15. something percent in the near future due to the rise in the BOE rates - but I didn't pay attention as to when it was effective from, as I always pay in full, but as of today it's still 14.9%)

It does have a quirk in that it doesn't operate a traditional direct debit, but a continuous payment authority on a debit card, haven't experienced that on a card before, but again fine with me, they can take the full payment monthly however they want. 

I did become eligible for a loan at the same time as the card - but since taking the card it's gone back to not being eligible for one. Interestingly the credit card is at 14.9 percent - lower than their general advertised rates, which when I run the odd eligibility checker on comparison sites, it comes in with 20 to 30 percent plus APR's. 

They do seem to be quite good at upping their savings rates - I've got some funds in their 31 day access pot at the moment, so no doubt we'll see a further increase shortly. 

MrFrugalFever

It seemed like a good choice out of a ‘bad’ bunch to be honest. All the comparison sites where the usual Ocean/Marbles/Aqua/118\post office and Cap1 with silly little limits of up to £1,500 and no more than 5 months 0% purchase (9 months BT but have nothing to BT).

I was baffled as nothing had come up on any comparison site relating to the offer they had suggested within the app and checked their website for clarification. They don’t advertise the rate at all, everywhere I looked said rates FROM 24.9% to whatever ridiculous percentage. I thought perhaps it wasn’t a usual credit card but rather one of these spread it out over a few months novelty ones that appear to be hitting the market. I read through the T’s & C’s and sure enough it was a fee free CC unless withdrawing cash or a cash-like transaction which incurs a £3 charge but at the same interest of 14.9%.

I too am looking forward to the savings rate increases, I have a couple of boosted pots (I like this idea!).

older_wiser

after reading this thread i decided to downloaded the zopa app i must have signed up quite some time ago as it said i already had an account

i updated the info on there and looked at what they would offer me they offered me a 9.9% card with a decent credit limit that would be my lowest % CC i wasn't eligible for any loans.

i have just taken out a TSB platinum purchase card with 15 months 0% for transfers and purchases standard is 21% and they gave me double the credit limit of my other cards which was surprising.

i won't be taking out any zopa cc i don't need one or loans but info is power and its good to see what they may offer me.

i am interested in the savings pots idea i currently leave money in my bank accounts but now savings rates are increasing it might be worth me doing 

thanks for posting 

MrFrugalFever

Interesting re: APR, what was the suggest CC limit out of curiosity?

older_wiser

MrFrugalFever said:

Interesting re: APR, what was the suggest CC limit out of curiosity?

estimated limit is 4k which is slightly less than my other CC the new tsb is nearly 10k i assume once that is entered onto my credit file i expect the estimated zopa limit to go down.

if you read some of the general blurb on credit card section it does say  max 5k and apr could be anywhere between 7.9 and 34.9 

i expect it to vary though and i could see some people gettting higher than 5k eventually

lopsyfa

Thanks for this, I also downloaded the app and opened their savings and boosted savings account 

The borrowing power rated me 10 out of 10 and offered a cc limit of 4k and 9.9% but I don't need another cc so didn't apply. Also offered £21000 loan at 6.5% APR but I also dont need a loan.

Interesting that myself and older_wiser got offered the same limit. 

MrFrugalFever

Applied on a Weds, card turned up on following Sat so very quick, easy to activate and the pin is accessible through the app once you activate as opposed to a separate mailing letter.

First downside noticed, doesn’t work with Apple Wallet Pay.

Se1Lad

I have a borrowing power of 10 as well.  My offers were a loan of £15,500 @ 7% and a CC with a limit of £4,000 @ 14.9%.

I’m stoozing about £40,000 elsewhere on two credit cards at the moment so I was surprised they gave me a borrowing power of 10!

MrFrugalFever

Se1Lad said:

I have a borrowing power of 10 as well.  My offers were a loan of £15,500 @ 7% and a CC with a limit of £4,000 @ 14.9%.

I’m stoozing about £40,000 elsewhere on two credit cards at the moment so I was surprised they gave me a borrowing power of 10!

It’s bizarre how they calculate it!

Out of interest, the £40k you’re stoozing, was that taken out as a money transfer or 0% purchase but serious spending to free up current account?

Se1Lad

MrFrugalFever said:

Out of interest, the £40k you’re stoozing, was that taken out as a money transfer or 0% purchase but serious spending to free up current account?

It was a balance transfer in a roundabout way.

Another account had a money transfer offer that was 4.9% APR with no fee.  So I did the money transfer to get the money to my current account  and the following day I did the balance transfer to pay off the money transfer.  I was charged one days interest which was about £3.

When I repeated for the second credit card I did it all on the same day - so no interest charged.