UK-based peer-to-peer lending firm Zopa has rolled out a new digital tool to streamline the credit worthiness procedure and enable users to avail credit at the best rates.
Dubbed Borrowing Power, the credit tool shows scores directly linked to a Zopa loan and offers users insights on how much and the rate at which they can borrow from Zopa.
Zopa said that the new tool utilises various components such as credit usage and the number of hard searches.
Borrowing ability of customers are displayed one the basis of the score between one and ten. Besides, the tool also shows customers how to increase their credit scores.
Commenting on the new offering, Zopa chief product officer Didier Baclin said: “Giving people certainty, transparency, and ultimately the power to lower the cost of credit in the future is unique in the market.
“With Borrowing Power, we are putting the power back into the hands of the customer – allowing people who may not be eligible for credit, or those who want a lower rate, to take action and unlock a lower rate in the future.
“Zopa wants to take away the smoke and mirrors linked to creditworthiness. This new tool takes us one step further towards helping people feel good about their money.”
Notably, Zopa secured a banking licence from the UK’s Financial Conduct Authority (FCA) at the end of last year.