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Zopa Credit Card review 2021

Zopa has launched an easy-to-manage variable rate credit card that aims to “put customers in control of their borrowing".

The peer-to-peer lender is broadening its product range with a new credit card and savings account.

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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).

£200

Minimum credit limit

Up to 56 days

Interest-free each billing period

34.9%

Representative APR

0%

Foreign transaction charge

Details

IssuerZopa
NetworkVisa
Annual/monthly fees£0
Purchases34.9%
Purchases interest-free periodUp to 56 days
Cash advances34.9%
Min credit limit£200
Max credit limitNot specified
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Review by


Tom Stelzer is a writer for Finder specialising in personal finance, including loans and credit, as well as small business and business loans. He has previously worked as a freelance writer covering entertainment, culture and football for publications like FourFourTwo and Man of Many. He has a Master of Media Arts and Production and Bachelor of Communications in Journalism from the University of Technology Sydney.

Expert review

Zopa is a peer-to-peer lender that has also 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.

The Zopa Credit Card is issued on the Visa network (used by a whopping 3.3 billion cards), so you'll be able to use it at more than 46 million merchants across more than 200 countries and territories.

Aqua Classic Credit Card

Aqua Classic Credit Card

  • An Initial credit limit of £250-£1,200
  • Receive text alerts when you’re approaching your credit limit
  • Choose your repayment date
  • No annual fee

Representative 29.7% APR (variable)

Credit provided by NewDay Ltd. 18+, subject to status, UK only. T&Cs apply.
Promoted

Pros and cons

Pros

  • Avoid currency conversion charges when spending abroad
  • No annual fee

Cons

  • Minimum annual income requirement of £10,000

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

Name Product Purchases rate Foreign transaction fee Foreign cash transaction fee Interest-free days on foreign transactions Interest-free days on foreign cash transactions Representative example
Zopa Credit Card Visa
34.9%
0%
0%
Up to 56 days
0 days
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).
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Other popular cards for overseas spending

Table: sorted by representative APR, promoted deals first
Name Product Purchases rate Foreign transaction fee Foreign cash transaction fee Interest-free days on foreign transactions Interest-free days on foreign cash transactions Representative example
The Royal Bank Credit Card (existing customers only)
12.9%
0%
3% (min. £3)
Up to 56 days
0 days
Representative example: When you spend £1,200 at a purchase rate of 12.9% (variable) p.a., your representative rate is 12.9% APR (variable).
The NatWest Credit Card (existing customers only)
12.9%
0%
3% (min. £3)
Up to 56 days
0 days
Representative example: When you spend £1,200 at a purchase rate of 12.9% (variable) p.a., your representative rate is 12.9% APR (variable).
Santander All in One Credit Card
0% for 20 months reverting to 17.9%
0%
3% (min. £3)
Up to 56 days
0 days
Representative example: When you spend £1,200 at a purchase rate of 17.9% (variable) p.a. with a fee of £3 per month, your representative rate is 23.7% APR (variable).
Bip Credit
29.95%
0%
0%
Up to 48 days
0 days
Representative example: When you spend £1,200 at a purchase rate of 29.95% (variable) p.a., your representative rate is 29.9% APR (variable).
Ulster Bank Credit Card Mastercard
12.9%
0%
3% (min. £3)
Up to 56 days
0 days
Representative example: When you spend £1,200 at a purchase rate of 12.9% (variable) p.a., your representative rate is 12.9% APR (variable).
Metro Bank Personal Credit Card Mastercard
14.9%
0% within the EU and 2.99% in other countries
0%
Up to 56 days
0 days
Representative example: When you spend £1,200 at a purchase rate of 14.9% (variable) p.a., your representative rate is 14.9% APR (variable).
Nationwide Member Credit Card Balance Transfer Offer
0% for 3 months reverting to 19.9%
0%
2.5% (min. £3)
Up to 56 days
0 days
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).
Nationwide Member Credit Card All Rounder Offer
0% for 15 months reverting to 19.9%
0%
2.5% (min. £3)
Up to 56 days
0 days
Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a., your representative rate is 19.9% APR (variable).
Halifax Clarity Credit Card Mastercard
19.93%
0%
0%
Up to 56 days
0 days
Representative example: When you spend £1,200 at a purchase rate of 19.93% (variable) p.a., your representative rate is 19.9% APR (variable).
Virgin Money Travel Credit Card
0% for 9 months reverting to 21.9%
0%
3%
Up to 50 days
0 days
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).
Virgin Money 29 Month Balance Transfer Credit Card Mastercard
0% for 3 months reverting to 21.9%
0% within the EU and 2.99% in other countries
5%
Up to 50 days
0 days
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).
Virgin Money 27 Month Balance Transfer Credit Card Mastercard
0% for 3 months reverting to 21.9%
0% within the EU and 2.99% in other countries
5%
Up to 50 days
0 days
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).
Virgin Money 19 Month All Round Credit Card Mastercard
0% for 19 months reverting to 21.9%
0% within the EU and 2.99% in other countries
5%
Up to 50 days
0 days
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).
Virgin Money Virgin Atlantic Reward Credit Card
22.9%
0% within the EU and 2.99% in other countries
5%
Up to 50 days
0 days
Representative example: When you spend £1,200 at a purchase rate of 22.9% (variable) p.a., your representative rate is 22.9% APR (variable).
Barclaycard Rewards Visa
22.9%
0%
0%
Up to 56 days
Up to 56 days
Representative example: When you spend £1,200 at a purchase rate of 22.9% (variable) p.a., your representative rate is 22.9% APR (variable).
Virgin Money 16 Month Balance Transfer Credit Card Mastercard
0% for 3 months reverting to 27.9%
0% within the EU and 2.99% in other countries
5%
Up to 50 days
0 days
Representative example: When you spend £1,200 at a purchase rate of 27.9% (variable) p.a., your representative rate is 27.9% APR (variable).
Virgin Money 12 Month All Round Credit Card Mastercard
0% for 12 months reverting to 27.9%
0% within the EU and 2.99% in other countries
5%
Up to 50 days
0 days
Representative example: When you spend £1,200 at a purchase rate of 27.9% (variable) p.a., your representative rate is 27.9% APR (variable).
118 118 Money Guaranteed Rate Card
34%
0%
0%
Up to 51 days
Up to 51 days
Representative example: When you spend £1,200 at a purchase rate of 34% (variable) p.a., your representative rate is 34% APR (variable).
Zopa Credit Card Visa
34.9%
0%
0%
Up to 56 days
0 days
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).
Aqua Advance credit card
34.95%
0%
5% (min. £4)
Up to 48 days
0 days
Representative example: When you spend £1,200 at a purchase rate of 34.95% (variable) p.a., your representative rate is 34.9% APR (variable).
Tesco Bank Clubcard Plus Credit Card Mastercard
0% for 24 months reverting to 19.944%
0%
3.99% (min. £3)
Up to 56 days
0 days
Representative example: When you spend £1,200 at a purchase rate of 19.944% (variable) p.a. with a fee of £7.99 per month, your representative rate is 37.7% APR (variable).
Royal Bank of Scotland Reward Black Credit Card Mastercard
21.9%
0%
3% (min. £3)
Up to 56 days
0 days
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a. with a fee of £84 per annum. Reward Black Current Account holders: £0 per annum, your representative rate is 40.7% APR (variable).
NatWest Reward Black Credit Card Mastercard
21.9%
0%
3% (min. £3)
Up to 56 days
0 days
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a. with a fee of £84 per annum. Reward Black Current Account holders: £0 per annum, your representative rate is 40.7% APR (variable).
Santander World Elite Mastercard
0% for 18 months reverting to 18.9%
0%
3% (min. £3)
Up to 56 days
0 days
Representative example: When you spend £1,200 at a purchase rate of 18.9% (variable) p.a. with a fee of £15 per month, your representative rate is 49.8% APR (variable).
Virgin Money Virgin Atlantic Reward Plus Credit Card
22.9%
0% within the EU and 2.99% in other countries
5%
Up to 50 days
0 days
Representative example: When you spend £1,200 at a purchase rate of 22.9% (variable) p.a. with a fee of £160 per annum, your representative rate is 63.9% APR (variable).
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Approval for any credit card will depend 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.

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 4.8 out of 5, based on more than 15,000 reviews (updated 23 December 2020). 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 23 December 2020), with a rating of 4.9 out of 5 on the Apple App Store (based on 5,000 reviews), and a rating of 4.8 out of 5 on the Google Play store (based on more than 1,300 reviews).

The verdict

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.

Frequently asked questions

What credit limit will I get with the Zopa Credit Card?

If Zopa is able to offer you this deal, the offer will specify a personalised credit limit based on Zopa's assessment of your situation. The minimum limit offered on this card is £200 and Zopa does not specify a maximum. Once you've had the card for a while and shown Zopa that you're reliable, you may wish to apply for a credit limit increase.

Can I withdraw cash using the Zopa Credit Card?

Although it's possible, withdrawing cash from a credit card account is generally not a good idea, as "cash-like transactions" (such as withdrawing cash at an ATM, getting cashback at the till, spending at a casino or buying currency) often incur steep fees and/or higher rates of interest.

There's no cash advance fee on the Zopa Credit Card.

The interest rate on this part of your balance will be 34.9%, which is the same as the standard purchases rate (chargeable from the day of the transaction – the card's usual "up to 56 days interest-free" grace period won't apply).

What is the minimum payment on the Zopa Credit Card?

Each month you must pay at least 1% of your balance at that point or £5.00 – whichever of the two figures is greater. So if you had, say, £450.00 outstanding, you'd pay £5.00, and if you had £2,000.00 outstanding, you'd pay £20.00.

Paying only the minimum required amount each month is generally not advisable as it tends to be a very expensive way to borrow money which can lead to persistent debt.

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