The great thing about Borrowing Power is that it doesn’t just show you your rating today, but also empowers you to improve it by giving you personalised actions that show you how. Here’s a bit more about the sort of things you can do to keep your Borrowing Power on track.
A quick recap of Borrowing Power works
First off: a quick recap of Borrowing Power itself.
Borrowing Power is your 1 – 10 rating that will show you what you can borrow from Zopa and how much it will cost. Our app shows exactly what goes into your rating and, for those of you looking to improve, some personalised actions that could set you on the path to a better Borrowing Power rating.
Improving your Borrowing Power is worthwhile, but especially if you know you’ll be in the market for a loan in the near future. If you hop on over to your eligibility tab, you’ll not only see the Zopa loans you’re eligible now, but also the rates you could get if you improve your Borrowing Power by 1. (Representative APR 9.9%).
Here’s 3 of the most common things that could boost your Borrowing Power:
1) Avoid going over your credit limit
Going over your limit could indicate that you’re not careful at managing your credit. To avoid decreasing your Borrowing Power, keep an eye on your balance.
2) Avoid utilising too much of your available credit
Low credit utilisation could prove to us that you’re good at managing credit. For example, going over 20 or 40% might have a negative effect on your Borrowing Power. In practice, this means that if your credit card limit is £1,000, spend no more than £400.
3) Minimise the number of hard searches
It could be okay to have a couple of searches on your file, but any more might look like you’re hungry for credit or you’ve been declined. To minimise your hard searches, make as few credit applications as possible, and only apply for credit that you’re eligible for. You can check your eligibility for Zopa loans through Borrowing Power.
What else can I do?
They’re just three of the actions you could see in your Borrowing Power app. But there are lots more that can steer you and your finances in the right direction.
And the best bit about it is that they’re personalised to you and your financial situation so you know that the changes you make are the ones most likely to count.
So what are you waiting for?
Download our app to find out your Borrowing Power rating today.