Power Up: Borrowing Power and your money
**Borrowing Power is Zopa’s latest tool to help you feel good about your money. It’s an in-app tool that helps you get the best rate you can on a Zopa loan. **
It cuts through all the confusion to give you a 1 to 10 rating that reflects your credit health and helps you understand how we at Zopa view you as a customer. You can see how much we’d lend to you now, or in the future, if you improve your Borrowing Power.
To help you on that journey, you’ll get a personalised list of specific actions that will help you feel confident that you’re making the right moves to improve your financial health. And, if you’re successful in boosting your power, we can show you what Zopa loan rates you could unlock in the future.
It takes just a few moments to download our app and enter your information to find out your Borrowing Power rating. It’s still brand new, so we’d love to know what you think of it and how you plan to use it to power up your finances.
What’s different?
There are lots of money management apps on the market, so what is it that makes Zopa’s Borrowing Power different?
Firstly, there’s the personalised list of specific actions and things you should avoid to improve your credit health. We layer up the information that you and the credit agencies give us with everything we’ve learned over our 14 years of lending. This means we can provide you with actions that are specific to you and your financial situation.
Secondly, it’s the first time a credit health tool has been directly linked to a product so we can show you how much you could borrow from Zopa and at what rate. In other words, it can show you which Zopa loans you’re eligible for today and what rates you could unlock in the future. We’ve worked out that the average saving a Borrowing Power improvement of 1 translates to is £600 over the course of your loan. Think what you could spend that on!
Who’s it for?
Anyone can download our app and access their Borrowing Power to see their rating. You don’t need to have a Zopa loan.
It’s ideal if you think you’re going to want to borrow in the next few months and are likely to apply to Zopa for a loan, but have a bit of time to make some improvements to your financial health before then. Borrowing Power can give you a personalised list of things that could help to improve your rating and, as it’s directly linked to Zopa loans, we can show you if you’re eligible, as well as the improved rate and cheaper loan that you’re working towards.
If you aren’t planning to get a Zopa loan in the near future, but you do have your eye on something like a mortgage, it can still give you good guidance for how to get credit healthy and show you a breakdown of the various elements that lenders like Zopa look at when considering you for a loan or credit.
And even if you aren’t planning on either of those things, you can still use it as a tool towards getting that smug feeling of knowing your finances are in order.
Know your Borrowing Power
To work out your Borrowing Power rating, we crunch through a whole load of data including your credit score, the number of hard searches you’ve performed, credit usage and lots more.
We know there’s lots of confusion around all of these things, so we’ve asked award-winning financial journalist and author, Laura Whateley, to dig into some of the trickier topics in a series of blogs that will help you really get to grips with your Borrowing Power.
Keep an eye on our blog and social media for these over the next couple of weeks.
Ready to boost your Borrowing Power?
Seeing your Borrowing Power rating doesn’t affect your credit score, you’ll be more confident about how to improve your financial health and you could be on the road to save up to £600 on a Zopa loan. Representative APR 9.9%
Head to the App Store or Google Play to download the Zopa app to find out your Borrowing Power rating today!
Zopa looked at approved loan applications of £7,500 for 3 years (average term and amount) from 2018 to now, splitting by time period of 1 day (as pricing can change from one day to the other), Calculating the difference in total repayable amount and monthly payment (for sense check) for customers with 1 market difference within the same day, averaging those differences. Eligible loan customers have a rating over 4.
