For some customers, changes to the Bank of England’s base rate can impact your credit card’s interest rate. You can check if this is the case for you in the interest rate and fees section of your credit card agreement. This can be found in the Zopa app – here's how.

If your rate is linked to the base rate, here’s everything you need to know.

You can see the current Bank of England base rate here. If that rate goes up or down, we’ll change your interest rate by the same amount. 

However, we ignore any changes to the base rate when they occur below 0.5%. This means that if the rate was to change from 0.1% to 0.4%, it would have no impact on your credit card’s rate.

The scenarios below should give you an idea of how this works: 

Scenario 1 

You have an interest rate of 34.9% which was set when the base rate was 0.1%. The Bank of England has announced it will increase the rate up to 0.5%. In this scenario, we wouldn’t change your rate as we ignore all changes where the old and new rate are 0.5% or lower.

Scenario 2 

You have an interest rate of 30% which was set when the base rate was 0.1%. The Bank of England has announced it will increase the rate up to 1.2%. In this scenario, we’ll change your interest rate to 30.7% as the base rate is now 0.7% above the 0.5% baseline that we use.

Scenario 3 

You have an interest rate of 34.9% which was set when the base rate was 1.5%. The Bank of England has announced it will decrease the rate down to 0.2%. In this scenario, we’ll change your interest rate to 33.9% as the base rate is now below 0.5%. We’ll ignore any change below 0.5%, therefore the base rate is 1% lower than when you took out the card.