Frequently asked questions

Looking to borrow?

Select a topic from the dropdown menu below to get started or have a look through the Looking to borrow? section below:

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Looking to borrow?

1. How much can I borrow?
2. Over what timeframe can I borrow?
3. Can I repay my loan early if I like?
4. Are my name and address hidden from lenders?
5. Can I choose the repayment date for my loan?
6. What type of credit search does Zopa carry out?
7. What rates can I expect to pay?
8. Can I get a personal quote before I apply?
9. How do you work out what market I can borrow from?
10. I have a bad credit history - can I borrow at Zopa?
11. How is the APR calculated?
12. How are repayments calculated?
13. What is my credit score?
14. Are there any hidden charges?
15. What happens if I default on a Zopa loan?
16. I am in the forces. Can I become a borrower?

1. How much can I borrow?

Any amount from £1,000 to £15,000.

2. Over what timeframe can I borrow?

You can get a Zopa loan for 36 or 60 months.

3. Can I repay my loan early if I like?

Yes. At Zopa, unlike at other loan providers, you can repay early, or in lump sums, at no extra cost.

4. Are my name and address hidden from lenders?

Yes they are, for security reasons. Your lenders can see your username, your age and the county you come from.

5. Can I choose the repayment date for my loan?

Yes you can. When you apply for your loan, you'll be asked which day of the month you'd like to make your repayments on. So you can pick a day which suits you best.

6. What type of credit search does Zopa carry out?

When you give Zopa permission to access your credit records Zopa makes a data search request to one or more of the UK's credit bureaux (e.g. Equifax, Call Credit, Experian).

There are a number of different types of search that Zopa performs on members. Initially Zopa requests a Credit Quotation and an Identity Verification search. These types of search, whilst visible on your credit record, do not affect your credit score.

Other types of search, such as a Subsequent Enquiry search, also do not affect your credit score. The only time that your credit score will be affected is when you actually borrow at Zopa. In this instance, a Credit Application search is made and this search is visible to other credit providers in the country. This is the same as a Credit Application search made via any bank, as all companies accessing credit records on behalf of individuals must subscribe to a standard set of rules and procedures laid down by SCOR (the Standing Committee on Reciprocity).

7. What rates can I expect to pay?

The rate you're offered will be based on your creditworthiness. Everyone looking to borrow is credit-scored and then put into the A*, A, B, C or Young market. A*-rated borrowers are the most creditworthy, followed by A-rated borrowers, then B-rated and then C-rated borrowers. Borrowers in the C market have a higher credit score than most of the population. If you're more than 25 years old and your credit score is below that required for the C market, then unfortunately you can't borrow at Zopa at the minute.

Borrowers aged 20 to 25 fit into our Young Market. These borrowers often find it hard to get unsecured loans. This isn't because they have any record of bad debt, but because they haven't taken enough debt in the past to prove their ability in repaying it. Unlike other loan companies, we don't penalise a borrower just because they're young and have very little history of repaying debt. Instead, we make sure that we can identify them properly, check their employment and affordability and that all the other information they give us is OK.

So the Young market is where responsible young adults can get the financial help they need during their early careers from lenders who are prepared to take a little more risk for a little more return.

8. Can I get a personal quote before I apply?

Before applying for a loan, you can see what rates are available on the marketplace by checking the loan calculator. Here you'll see what rates are being offered in the A*, A, B, C and Young markets. If you're creditworthy enough to borrow at Zopa, you'll be put into one of these 5 markets and offered the rate for that market - but until you apply for a loan and let us get your credit score, we can't tell you which market you'll be able to borrow from.

9. How do you work out what market I can borrow from?

To become a borrower at Zopa in the A*, A, B, or C markets, you will be 26 years of age or more and your credit data over the last three years will show:

• a responsible use of credit
• you've been on the electoral register for each of your addresses
• you've not increased your borrowing recently

We'll also need to be able to confirm all the information you give us and the loan has to be affordable for you.

The exact market you end up in will depend on you credit score, with A* borrowers having the highest credit scores, followed by A borrowers, then B and then C borrowers. C borrowers have higher credit scores than most of the British public.

To become a borrower at Zopa in the Young market, you must be aged between 20 and 25 years old.

Young borrowers often find it hard to get unsecured loans because they have unblemished but also unproven debt histories. Zopa lenders can therefore choose to give you the benefit of the doubt, provided that you have also:

• not increased your borrowing recently
• been on the electoral register for as long as possible at each of your addresses
• not failed to repay any previous debt so far

We'll also need to be able to confirm all the information you give us and the loan has to be affordable for you. Affordability calculations will take any repayments on student loans you have into account.

10. I have a bad credit history - can I borrow at Zopa?

Probably not - all Zopa borrowers have a good track record of repaying debt, or if they're in our Young Market, they have no history of bad debt.

11. How is the APR calculated?

APR stands for Annual Percentage Rate, and is a way of comparing the cost of loans from different providers. It takes into account all the interest and charges that are payable on a loan, and so shows you the actual cost of the loan.

The APR on Zopa loans covers both the interest you pay to lenders and the £94.25 Zopa fee. The amount of interest you pay to lenders is determined by the rates they're offering their money at - Zopa is a marketplace, and the rates on Zopa loans are set by our lenders.

12. How are repayments calculated?

As with all personal loans, the interest you pay on a Zopa loan is based on the outstanding balance of your loan. It's calculated daily, although you make repayments monthly.

While your repayments will be the same through out the course of a loan (except for maybe your first one), you'll be paying less interest and repaying more capital each month.

The first repayment you make will be slightly higher than the rest of your repayments if more than a month passes between you taking out the loan and making your first repayment. Whether this happens depends on which day of the month you chose to make your repayments on.

13. What is my credit score?

When you apply for a loan at Zopa we use a company called Equifax to check your details and get your credit score. If you want to find out your credit score, your best bet is to contact Equifax directly.

14. Are there any hidden charges?

Absolutely not. Borrowers are charged £94.25 of the total loan amount, which is paid up front, and then that's it. If you want to repay early, or repay in lump sums, you can do so at no extra cost (unlike at some loan providers).

15. What happens if I default on a Zopa loan?

If you think that you may not be able to honour your repayment commitments to your lenders, you should contact us immediately by emailing contactus@zopa.com.

We will get back in contact with you as soon as we can by email or phone to talk through the options with you.

If you miss a payment and do not contact us first, your details will be passed to the collections agency which may charge you a fee of £20.

16. I am in the forces. Can I become a borrower?

Provided you've been on the electoral roll for 6 years or more, have a credit history of at least 6 years and a UK address then you can apply for a Zopa loan. If you have a BFPO and experience any difficulties getting through our address checker, please email contactus@zopa.com and we'll help you out.