Zopa credit card saw 45pc increase over Black Friday

Zopa saw a 45 per cent increase in spending on the Zopa credit card over Black Friday weekend, as the fintech lender urges consumers to take a balanced approach to spending this festive season.

The digital bank has highlighted three key questions that consumers should ask ahead of the holiday season: do you understand your interest rate, can you improve your credit score, and can you shop around to get a better deal?

Zopa revealed that 45 per cent of its customers were able to improve their credit score using Zopa’s Borrowing Power tool in 2021.

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“After the restrictions of the last two years and the disappointment of a 2020 lockdown Christmas, UK consumers want nothing more than to enjoy a fun and stress-free holiday season,” said Clare Gambardella, chief customer officer at Zopa.

“But that doesn’t have to mean spending at a level which could put them in a worse position going into 2022.

“It is especially important for card providers to help customers make sense of the more technical parts of lending like interest rates and credit scores, and to explain the importance of taking a medium term, responsible approach to credit in order to improve financial health.

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“Using a tool like Zopa’s Borrowing Power can help customers to access their best possible rate on new credit, and keep on budget once they start using it. This will be particularly useful, given predicted interest rate increases in the New Year.”

Zopa added that since the launch of its bank in June 2020, it has attracted £850m in deposits into its fixed term savings accounts, and it has issued 185,000 credit cards, making it a top 10 credit card issuer. The company has more than doubled revenue per customer.

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