Tom of Prosper Lending Review found out that when he tried to request a Zopa loan not only was he rejected, but the Zopa credit inquiry was listed on his credit report. Unlike other p2p lending services in the US Zopa does a hard pull. The Zopa FAQ states:
We think it’s best if you assume that there will be an impact to your credit score. That means you should only get a quote if you really would be interested in a Zopa Loan.
Bad.
I know – isn’t that a kick in the pants? When Zopa first opened in the US, I was excited about the Prosper alternative, but the same thing happened to me. Turned down and ended up with an additional black mark on my credit record.
They really should warn their potential borrowers in a more prominent way that, not only is it a hard pull on their credit, but the chances of them approving the loan are next to nil.