Zopa’s credit card has been integrated into the platform’s credit health tool – Borrowing Power – with the aim of helping users improve their financial health and get better borrowing rates.
The peer-to-peer lender said that the new integration should improve eligibility for its credit card, and can reduce the rate of borrowing with Zopa.
Zopa’s Borrowing Power tool was launched in 2019 and combines Equifax credit score data with Zopa’s in-house affordability checks to give customers their Borrowing Power credit rating.
This rating can increase their chances of gaining access to Zopa’s lending products and securing a lower borrowing rate.
More than 110,000 Zopa users now use the Borrowing Power tool, with one in three Zopa app users checking their Borrowing Power figures every month.
“We are proud that our app has helped so many people to improve their credit health and access fairer, better value loans and credit cards from Zopa,” said Clare Gambardella, Zopa’s chief customer officer.
Recent research by Zopa found that 20 per cent of UK adults don’t understand how the APR they are offered is calculated, and 11 per cent don’t know that their credit score affects the APR they are offered on credit cards.
In May, Zopa announced that it had partnered with credit score provider and marketplace ClearScore to utilise open banking capabilities for its customers.
It said that this partnership has resulted in a 37 per cent increase in the number of users eligible to apply for a Zopa credit card, improving financial inclusion for thousands of new customers who may have previously been declined due to thin files.