Zopa loans. Any good or are they bad?

[Evening Star]

Ladies & Gents.

I'm looking to buy myself a new motorbike, I need to borrow about £6½k for about 2-3 years, not sure on the length as I maybe able to repay it quicker, anyway Zopa a name I've never heard of before keeps on popping up on the comparison sites with about the best interest rate I can find for that amount of loan.

Have any of you had any dealings with this company?

If so what were they like? Good, Bad or Indifferent?

Your opinions would be appreciated.

ES.

[xreyuk]

I haven't had any dealings, but one of the guys I know said they're pretty good.

Have a read through their forums though.

[Babs]

I've had two loans through them in the past (one still running).

Very impressed, quick and easy decision. While the rate may not be the best (for me, at least), it's still very good, and is offset by no penalties for paying more off, or clearing the loan in one go.

Money was in my account the same day both times, and when I paid off the last one early the payment was taken through the same Direct Debit, and confirmed the same day aswell

[Evening Star]

Cheers xreyuk & Babs.

I think I might have a loan from them then.

[Binzie]

i have one too (for now)

I love the concept with your message being sent to all lenders

They often change lenders too as people withdraw their money

good comms, and fast service

[gac]

I've got one for my Fabia. Better rates than I could get from my bank (Zopa is 8.1%, I *think* Santander were into double figures at the time I was looking). It's also more flexible in that the interest is calculated daily so I can make extra payments whenever I like to clear the loan quicker and pay less interest, whereas Santander only allow a total repayment with all the interest loaded upfront so still has to be paid back whenever you settle. Plus, it felt more satisfying somehow to be able to help other people make the most of their savings instead of them getting some ****-poor rates in ISAs or other types of savings accounts, in exchange for them being kind enough to lend me their "unused" money.

Once I've got some savings worth speaking of readily available, I'm tempted to put a bit of money aside to become a Zopa lender too. Is it going to make me rich, almost certainly not, but it's offering people an alternative rather than banks which can only be a good thing.

[missingmyvrs]

Imo if you havent got cash to buy it then start saving!!!

[Longyear]

Imo if you havent got cash to buy it then start saving!!!

I say live and let live.

We all think differently about most things.

Edited 22 May, 2012 by Longyear

[Babs]

Paying back a loan is pretty much the same as putting money aside to save. You just pay a little bit more to get what you want now rather than in 76 years

[BJM]

Paying back a loan is pretty much the same as putting money aside to save. You just pay a little bit more to get what you want now rather than in 76 years

And encapsulated in those 2 sentences is the source of pretty much all of the financial woes currently afflicting all of the economies of the western world.

[XLBaconDoubleCheese]

Isn't it borrowing too much (be it a individual or a whole country) that is the problem? If you borrow within your means then there shouldn't be an issue surely.

[gac]

Taking on debt that I can afford to pay off is different from taking on debt and cards that I don't have a cat in hells chance of paying off. The woes (IMO) are caused by people who spend up well before payday, borrow money, then spend up well before the next payday, borrow more money, ad infinitum. Whereas I budgeted, worked out what I had spare each month and could afford to pay off a loan, worked out how much that would get me for three years and that gave me the budget for looking for a car. Just so happened my Fabia was within that budget, so I ended up here. In no way is it unaffordable, and I'm paying it off at the rate I agreed to, and making overpayments when I can in order to save myself a little bit of interest. I could have saved up for what I wanted, as I didn't really *need* a new car but as Babs said that would have made it a long way off, and I work hard enough to deserve to treat myself occasionally so I decided to get a loan, and Zopa was the best option for me at the time.

As with many things in life, there are ways to use a service and ways to abuse it, I'm using it for its prescribed purpose and getting what I need for it, and paying for the convenience and the service (which I'm entirely OK with). Which is different from a hardened debtor who knows just enough to take advantage of a service and knows how to avoid paying it back. Again, in my opinion.

[Nicky boy]

You shouldn't have to justify yourself mate. As long as you pay it back then everyone else can p*ss off. It's your one and only life at the end of the day.

[kevinm79]

I am a lender on zopa so far only had 2 bad loans. Back in the day when they had the listings the return on some loans where 15%+ apr which for me was golden,

But I love the idea and would use zopa myself If I ever needed a loan

[Nicky boy]

I am a lender on zopa so far only had 2 bad loans. Back in the day when they had the listings the return on some loans where 15%+ apr which for me was golden,

But I love the idea and would use zopa myself If I ever needed a loan

You had two bad loan experiences with zopa or elsewhere?

[kevinm79]

You had two bad loan experiences with zopa or elsewhere?

OH sorry I many not of explained myself 100% (its early). I lend money out on zopa. zopa if they are giving out a 5k loan to someone I might be funding £10 of that loan. if the loan defaults I loose my whatever is left out the £10..

[gac]

You shouldn't have to justify yourself mate. As long as you pay it back then everyone else can p*ss off. It's your one and only life at the end of the day.

It wasn't really a justification of my circumstances, just trying to make the other poster realise that the world isn't black and white (no debt = good, debt = bad). There are several shades of grey in between. I wonder, for example, if they currently live in a house with a mortgage? Because, you know, they could have just put £500/month away in a savings account and saved up for it, then bought it in cash in a mere 15+ years.

Debt in itself, isn't bad. Irresponsible debt is bad. Someone might have used a screwdriver to break into a house once, is the solution to ban all screwdrivers?

[Babs]

And encapsulated in those 2 sentences is the source of pretty much all of the financial woes currently afflicting all of the economies of the western world.

Not really, because as the others have said, there is a difference between borrowing what you can afford to pay back and borrowing recklessly. If you borrow what you can afford to pay back you'll "put aside" each month only a little more than what you'll save, but have what you want now.

But I'm sure you paid for your Superb with cash, same as your house. Because that's what normal people do isn't it?

[Nicky boy]

It wasn't really a justification of my circumstances, just trying to make the other poster realise that the world isn't black and white (no debt = good, debt = bad). There are several shades of grey in between. I wonder, for example, if they currently live in a house with a mortgage? Because, you know, they could have just put £500/month away in a savings account and saved up for it, then bought it in cash in a mere 15+ years.

Debt in itself, isn't bad. Irresponsible debt is bad. Someone might have used a screwdriver to break into a house once, is the solution to ban all screwdrivers?

Yes sorry, just that sort of comment and apparent wisdom annoys me. Perhaps I should have saved for my house as borrowing is bad!

[hertsnminds]

Interesting concept, set up by the same team that brought us the Egg card http://www.unofficialzopaguide.co.uk/ seems to be like any of the internet buying and selling sites, except for loans not stuff. You have some money you would like to earn interest on you give it to Zopla to lend to people who would like to borrow some money.

[gac]

Exactly. You get better interest than you'd get in most savings accounts (even taking bad debt into account which is sorted out on your behalf), and it gives borrowers who pass the credit checks an alternative to getting a loan from a high street bank and part-funding more huge bonuses. The only small issue is access to your money isn't guaranteed to be immediate (they have a scheme for withdrawing money you have lent out, but it depends on another lender being able to step in) but I reckon it makes a good alternative to a regular savings account or a fixed term bond that you can't withdraw from anyway, and simply relies on you having access to alternative money. To me, it seems like a good system, although I'm sure there are others who have their doubts about it.

[Loz]

I'd never heard of this before, I might sign up as a lender! What a cool idea.....

[matt_theforce]

My brother has never had a loan for anything & has always saved up for what he wants. He and his girlfriend have started looking to buy their 1st house together (both in their early 30's) and have been living together renting a flat for 6+ years.

Because they've never had a loan/mortgage they are constantly being turned down because they don't have a good credit score as they've never had a loan to pay back.. How stupid is that!!! Surely they should be better placed as they've shown they are able to save for purchases?

[cheezemonkhai]

My brother has never had a loan for anything & has always saved up for what he wants. He and his girlfriend have started looking to buy their 1st house together (both in their early 30's) and have been living together renting a flat for 6+ years.

Because they've never had a loan/mortgage they are constantly being turned down because they don't have a good credit score as they've never had a loan to pay back.. How stupid is that!!! Surely they should be better placed as they've shown they are able to save for purchases?

Crazy isn't it.

Show you can control your spending and you're a bad candidate for a loan.

Yes you've not shown you'll pay it back, but you've also shown that you don't get into things you can't afford.

[Babs]

Makes perfect sense actually. Like car insurance.

You show that you can drive well, and not get into accidents, and your cost to insure comes down. Same applies here.

No history = higher risk