Zopa Bank opens for credit card applications
Zopa Bank has opened its credit card for applications as it grows its suite of products.
The sister brand to the world’s oldest peer-to-peer lender is marketing a credit card with annual percentage rates from 9.9 per cent but a representative APR of 34.9 per cent.
Users can get a minimum credit limit of £200 and maximum of £1,500.
The card is currently soft-launched with more features due to be added later.
Its main selling points are that customers can apply and manage their credit card through its app and will receive spending notifications to keep track of where their money is going.
There are no charges for overseas spending other than the exchange rate.
Read more: Zopa Bank unveils savings range
Read more: Zopa gets UK bank licence
However, there is no balance or money transfer option and Zopa Bank is offering a standard 56 days of interest-free purchases.
The actual rates and credit on offer will depend on the individual applicant but Zopa Bank does offer an online eligibility checker that doesn’t impact your credit score.
The functionality may be appealing but there are some more competitive deals on the markets.
M&S Bank currently offers interest-free spending on its credit card for 20 months and an APR of 19.9 or you can get a 22-month interest-free balance transfer card with Virgin Money.
TSB also offers a low standard APR of 7.9 per cent with three months of interest-free spending.
This suggests Zopa Bank may have a user-friendly offering but that doesn’t necessarily make it the most competitive.
Read more: How Zopa Bank can crack the savings market