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The peer-to-peer lender is broadening its product range with a new credit card and savings account.
In a nutshell:
Minimum credit limit
Up to 56 days
Interest-free each billing period
Foreign transaction charge
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.
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.
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.
|Minimum amount||Fixed amount||Fixed percentage||Full amount|
Approval for any credit card will depend on your status. The APR shown represents 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’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.
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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