Zopa Launches First Ever Credit Card | moneyfacts.co.uk

Derin Clark

Derin Clark

Online Reporter
Published: 28/10/2020

Zopa has launched its first credit card, which comes with a range of features that the bank has said are designed to help customers to stay in control of their money and debt. Here, we take a look at the Zopa credit card and compare it to others available on the market.

Zopa’s Credit Card Visa

Zopa’s first ever credit card charges 34.9% APR, which is a higher APR than many rival cards. It does not charge a foreign usage fee, which will likely appeal to those who travel abroad regularly. This card also offers customers a unique feature called ‘Safety Net’, which allows customers to lock away part of their available credit for unexpected expenses. In addition to this, the card includes real-time balance updates, instant notifications on purchases, and a spend tracking feature.

It can be fully managed through an app, providing customers with the convenience of managing the card through their phone, which will likely appeal to younger credit card borrowers. However, customers should be aware that 34.9% APR means that this is an expensive way to borrow and Zopa credit card holders should aim to pay off the balance in full each month to avoid paying high interest fees.

Credit card offering interest-free purchase period

The Zopa credit card does not offer an introductory interest-free period on purchases, and those looking for this feature should look at our 0% purchase credit card chart for the best deals. Currently Santander tops the chart with its All in One Credit Card Mastercard, offering an interest-free period for 26 months. This card also offers 0.5% cashback, but it is important to be aware that it charges a £3 monthly fee. Once the interest-free introductory period has ended, this card charges 21.7% APR.

Offering the longest interest-free period on purchases without having to pay a monthly fee is TSB, M&S Bank and Sainsbury’s Bank, all of which offer 0% interest for 20 months. TSB’s Platinum Purchase Card Mastercard charges 19.9% APR once the 20-month interest-free period has ended. M&S Bank’s Shopping Plus Mastercard charges 19.9% APR once the interest-free period has ended. This card also offers customers reward points on transactions that are converted to rewards vouchers that can be used in M&S stores. Sainsbury’s Bank charges 21.9% APR once the 20-month interest-free period is over. This card allows balance transfers and also offers reward points when transactions are made that can be redeemed in Sainsbury’s stores.

Credit cards offering balance transfers

Another popular feature that the Zopa credit card does not offer customers is balance transfers, which allows customers to transfer their existing credit balance to a new card and then have an interest-free period in which to pay off the balance.

TSB currently offers the longest interest-free period on balance transfer credit cards with its Platinum Balance Transfer Card Mastercard having a 0% interest-free period for 29 months from the date of card issue. This card charges a 2.95% balance transfer fee. When the interest-free period has ended, it charges 19.9% APR.

Travel credit card

The Zopa credit card does not charge foreign usage fee when the card is used abroad, which is a feature popular with those who travel overseas regularly. Although Zopa is competitive in the travel credit card chart, the card currently topping the chart is Santander’s Zero Credit Card Mastercard. Along with having no foreign usage charges, this card offers 0% on purchases for 12 months, as well as balance transfers (although balance transfers from Santander Group cards is not permitted). This card charges 18.9% APR.

Credit card borrowers should be aware that the rate they are offered will depend on their credit rating. You can check your credit score for free using our credit check page.

Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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