Avid Zopa lenders might have noticed a slow down in their money being lent out over the last few weeks - so I thought I’d take a quick opportunity to explain what’s going on.
The reason for the slowdown is that the number of credit worthy borrowers applying to Zopa has dropped recently - as we’d expect it to in December. The loan business is highly seasonal with fluctuations in quality through the year, and December is the hardest month of the year to find good quality borrowers.
So, although you might be seeing things move a little slower than normal, it’s because we’re doing our best to look after your interests∧ don’t forget you earn 4.25% on money that isn’t lent out all the time that money is at Zopa.
Now - the good news is that January is not only a new year, but a major turnaround in lending. January has something like double the borrower volumes of any other month - as everyone works out just how much they spent over Christmas, and wants to sort it out. And to make it even better, the quality of borrowers shoots up as well.
So - in summary, hang on in there, enjoy your Christmas and New Year, and get ready to lend in January.
Tags: credit score