Jan 24 2006
Having a chat
Chewing the fat, shooting the breeze, having a natter - call it what you like, talking to people is darn important and everyone should do it as often as they can (except in libraries). We talk to our members as much as possible, through our blog and discussion board and by getting people to email contactus@zopa.com if anything's on their mind.
19 comments
John Brearley
I agree Richard! I have exactly the same point… a Zopa score of 503 and Equifax score of 504. In regular employment, never been out of work, professionally qualified, never been in arrears, oodles of equity on my property, no major loans other than a mortgage, no credit card debt…. Is that too risky? For Zopa, yes! It’s a joke!
John Brearley
Or, I wonder, is it because I did not accept Zopa’s credit insurance? No insurance = no commission for Zopa = No business? Anyone care to comment please?
Richard McLAREN
Yes John I agree I think you have hit the nail on the head there, they (Zopa) are quite happy to allow you to lend without question, but their borrowing critera puts their whole philosophy and integrity in doubt…any other similar experiences please comment..
Richard McLaren
Could it be as simple, that the girls temping in the office give a thumbs up or down each morning..Also worth pointing out that they will be on a good commision from equifax,when people panic and subscribe to check their credit score….
John Brearley
Yes, that’s another angle I hadn’t appreciated Richard. The first thing I did, when my loan was declined, was to follow the link to Equifax that Zopa kindly supplied. This had the word ZOPA within the link and the Equifax reference/transaction number I was given contained the word ZOPA. How much did did Zopa get in commission for my checking my credit score, which cost me £12.95? Can someone at Zopa either confirm or deny this please?
Incidentally Zopa have not responded to my email that I sent following the declining of my application. I specifically asked for it to be referred to the directors!
Dave
Hi guys,
I can assure you that our credit process is a bit more involved than our underwriters spinning a coin!
As for Equifax credit checks, yes we do get a commission, but it’s pretty small, and negligible in terms of our revenue model. I will find out what happened to your email John and check with Karen (our credit director) why both you and and Richard were declined. I won’t share that on the blog obviously, but I’ll get someone to contact you both.
Richard McLaren
Communication received from Zopa, full explanation re my borrowing application given…fair enough…Ricky
John Brearley
Lucky you Richard! I am still in the dark as to why I was declined.
Dave, any news on why my email still has not been answered please? It has now been nearly a week since I sent it.
I wait with anticipation.
John Brearley
OK, I have now had a phone call from Zopa explaining why I was declined. However I still think your reasoning is wrong and there is no way I am a credit risk however you measure it, as I told your person when I was called. Thank you Zopa.
Richard Mclaren
Hi John..some you win some you lose, check out http://www.claimschoice.com for a selection of loan quotes…Ricky
John Brearley
Just a quick update: This week a finance company I had never heard of (and with a forgettable name, as I forgot it instantly) called me to ask if I wished to apply for a loan. When I asked where they got my name and number I was told they had got it from Zopa.
neil
hi has anyone any idea how long it takes for zopa to reply after they dont give an answer about your credit score. its been ages and they obviously dont want me to give them business.
John Brearley
It was, I think, 5 working days for me Neil. Let us know how you get on.
neil
still no reply from zopa
Dave
neil – can you send your email again. The member services team have looked for it, but can’t see it. You can send it to me directly at dave@zopa.com if you’d prefer.
Zopa » Blog Archive » Bad debt rates
[...] This is the third (1st and 2nd) in an occasional series of posts on credit and credit scoring. [...]
John W
For those folks with lower credit scores, who don’t fully understand why, here’s a tip. If you have credit, but don’t use it, your score goes down over time.
The score is meant to show how you manage credit over time. Activity accounts for about 30%. Amounts owed in proportion to available form another 30%.
So if your credit is not in use and not being paid regularly (60%), it’s hard for Equifax & the like to give you an accurate score.
So when you go to apply for credit, they have no history to go on.
Equity has nothing to do with credit history or risk. Your mortgage isn’t included as part of your credit history, even though it’s the largest form credit you use on a regular basis.
I’d say if you have a mortgage and you want a loan, talk with your bank.
The other option is to buy something on credit and pay it each month. Watch your score soar!
Dolphy
Equifax credit monitoring is a joke. I was given a free year of Equifax credit monitoring by my health insurance company. When I signed up online, it came back with “order failed”. Their customer service couldn’t help. They kept insisting to go back to my health insurance company and get a new offer number. What a SCAM.
Richard McLaren
Posted on February 21st, 2006 at 9:57 pm
I suppose the risk is when is a risk a risk ZOPA credit score of 573.. equifax score of 529 too risky for borrowers..mmmm