The interest rate of your Zopa credit card is linked to the BoE’s base rate. If that rate goes up or down, we’ll change your interest rate by the same amount. 

However, we ignore any changes to the base rate when they occur below 0.5%. This means that if the rate was to change from 0.1% to 0.4%, it would have no impact on your credit card’s rate.

The scenarios below should give you an idea of how this works: 

Scenario 1

You have an interest rate of 34.9% which was set when the base rate was 0.1%. The Bank of England has announced it will increase the rate up to 0.5%. In this scenario, we wouldn’t change your rate as we ignore all changes where the old and new rate are 0.5% or lower.

Scenario 2

You have an interest rate of 30% which was set when the base rate was 0.1%. The Bank of England has announced it will increase the rate up to 1.2%. In this scenario, we’ll change your interest rate to 30.7% as the base rate is now 0.7% above the 0.5% baseline that we use.

Scenario 3

You have an interest rate of 34.9% which was set when the base rate was 1.5%. The Bank of England has announced it will decrease the rate down to 0.2%. In this scenario, we’ll change your interest rate to 33.9% as the base rate is now below 0.5%. We’ll ignore any change below 0.5%, therefore the base rate is 1% lower than when you took out the card. 

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