Zopa is broadening its product range with a credit card and savings account.
Zopa Credit Card review 2023
By Tom Stelzer
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Representative example: When you spend £1,200 at a purchase rate of 34.9% (variable) p.a., your representative rate is 34.9% APR (variable).
- Minimum credit limit
- £200
- Interest-free each billing period
- Up to 56 days
- Representative APR
- 34.9% (variable)
- Foreign transaction charge
- 0%
Zopa has launched an easy-to-manage variable rate credit card that aims to “put customers in control of their borrowing".
Zopa is a lender that has held a full UK banking licence since June 2020. Having started out offering personal loans, it's now aiming to shake-up the world of fixed-term savings accounts and credit cards.
The Zopa credit card is offered with variable rates that are tailored to the individual applicant, starting as low as 9.9%. That means that the better your credit score, the lower the rate you're likely to be offered. The representative APR (i.e. the rate that most cardholders will actually get) is 34.9%. That's higher than most credit cards, so Zopa may be primarily targeting the "sub-prime" market – that's applicants with limited or damaged credit histories.
Whatever rate you get offered, it'll be pegged to the Bank of England base rate – so if interest rates generally start to rise, the rate on the Zopa card will too.
One of the main benefits of this card is the exchange rates. Use it abroad, and you'll enjoy Visa's standard currency conversion rates – most credit cards add hefty fees on top of this.
But where it comes into its own is in how you manage your card and account. The Zopa credit card can be managed via an easy-to-use app, which offers instant payment notifications, real-time balance updates and the ability to freeze your card at any time.
Customers looking for a credit card with all the quality-of-life features offered by the digital banks may want to keep an eye on the Zopa credit card.
Pros
-
No foreign transaction fee on purchases
-
No annual fee
-
Cash Cushion feature lets you set aside some of your available credit balance for when you really need it
Cons
-
Fee applies to cash withdrawals
-
Interest will be charged on cash withdrawals from the date of the transaction, even if you pay off your balance in full
-
Interest will apply to purchases if you don’t clear your balance each month
Representative example: When you spend £1,200 at a purchase rate of 34.9% (variable) p.a., your representative rate is 34.9% APR (variable).
Details
Product Overview
| Issuer | Zopa |
| Network | Visa |
| Annual/monthly fees | £0 |
| Purchases | 34.9% |
| Purchases interest-free period | Up to 56 days |
| Cash advances | 34.9% |
| Minimum credit limit | £200 |
| Maximum credit limit | Subject to status: £1,500 |
| Potential costs | ★★★★★ |
| Doing its job | ★★★★★ |
| Extras | ★★★★★ |
| Overall Finder rating | ★★★★★ |
| Overall customer rating | Not yet rated |
Fees and charges
| Minimum monthly payment | 1% or £5 (whichever is greater) or the total of any interest, default fees and charges, your monthly simple interest rate plus 0.1%. |
| Annual/monthly fees | £0 |
| Foreign usage charge (EU) | 0% |
| Foreign usage charge (rest of world) | 0% |
| Cash advance fee | 0% |
| Late payment fee | £12 |
| Duplicate statement fee | £0 |
| Exceeding limit fee | £0 |
| Additional card fee | £0 |
| Dormancy fee | £0 |
Application Requirements
| Minimum Age | 18 |
| Minimum income | £10,000 |
| Availability | Available to new customers |
The Zopa Credit Card is issued on the Visa network (used by a whopping 4.2 billion cards), so you'll be able to use it at more than 100 million merchant locations across more than 200 countries and territories.
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Repayment options
You can make manual repayments through Zopa's app by logging in to your online banking or over the phone (0207 580 6060). Alternatively, you may wish to set up a direct debit.
A direct debit protects you from forgetting to make a repayment and damaging your credit score – making it harder and more expensive to borrow money in the future – and getting hit with a penalty fee (£12) as a result.
You can arrange a direct debit for repayments when you apply for the credit card. The table below shows the options available.
Choose from the following direct debit options for your monthly repayments:
| Minimum amount | Fixed amount | Fixed percentage | Full amount |
|---|---|---|---|
How does it compare?
Zopa's card
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Table: sorted by representative APR, promoted deals first
Approval for any credit card depends on your status. The representative APRs shown represent the interest rate offered to most successful applicants. Depending on your personal circumstances, the APR you're offered may be higher, or you may not be offered credit at all. Fees and rates are subject to change without notice. It's always wise to check the terms of any deal before you borrow.
Credit Cushion
This feature lets you set aside some of your availble credit which you can then use for a ‘rainy day’ instead of using your available balance or savings. You can control how much goes into the ‘Credit Cushion’ and access it at any point.
Zopa customer reviews
Zopa has received positive reviews from customers, according to customer review platforms like Trustpilot and Reviews.io. It currently has an “excellent” rating at Trustpilot, with an overall customers review score of 4.3 out of 5, based on more than 19,000 reviews (updated March 2023). Many customers praised Zopa’s customer service and simple application process, though some investors on the Zopa platform reported poor returns.
The Zopa app has also received good customer reviews (updated March 2023), with a rating of 4.8 out of 5 on the Apple App Store (based on 7,500 reviews), and a rating of 4.4 out of 5 on the Google Play store (based on more than 3,300 reviews).
The bottom line
Zopa’s all about slick digital experiences and looking after everybody through a broad range of rates that are tailored to the individual. So if you’ve struggled to get approved for credit elsewhere, Zopa will still consider your application and may be able to help.
The currency conversion fee – or rather the lack of one – is one of the cards best features. Plus, unlike some cards offering this benefit, those transactions will still enjoy the same interest-free grace period that sterling transactions enjoy (up to 56 days) provided you clear your balance in full each month.
Ultimately this is a perfectly decent card so long as you clear your balance in full each month. If you don’t, that relatively high representative APR means that it could get expensive.
Zopa says more features are on the way, so watch this space.
How to apply
If you're interested in getting a Zopa credit card, you apply online at the Zopa site. You'll first be prompted to check your eligibility by handing over a few basic details about yourself. This step won't impact your credit score.
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