Build your credit history while you save with LOQBOX
- Save from £20 to £200 a month
- Build and improve your credit history
- Once you’ve finished unlock your savings
Is it a loan? Is it a savings account? Well, actually it’s effectively both, and it’s the name of the company too – so you could be forgiven for getting confused. We’ll try to cut through some of the confusion surrounding this innovative credit builder.
If you decide to “buy” a LOQBOX, you’ll set up a direct debit to save a regular amount each month. LOQBOX cleverly treats these direct debits as finance repayments and each repayment is reported to a credit reference agency – showing lenders that you’re responsible with finance and boosting your chances of getting good deals on credit products. You can “unlock” your LOQBOX at anytime to get all your money back and walk away.
LOQBOX experienced a cyber-attack on 20 February 2020. While all LOQBOX funds remain safe and the company is functioning as normal, some of its customers’ personal information is likely to have been compromised. If you’re a LOQBOX customer, you should contact your bank or card issuer to see if you’ll need to take any action.
You may also be the target of phishing scams, but LOQBOX will never contact you to ask for your full bank or card details. If you receive a call, text or email from someone claiming to be from LOQBOX and asking for your financial information, do not give them your details.
LOQBOX is authorised and regulated by the Financial Conduct Authority (FCA). Any money you put into your LOQBOX is protected (albeit in a roundabout way) by the Financial Services Compensation Scheme (FSCS).
Your money is held in a ring-fenced, designated client account with Barclays, meaning it’s totally safe – so even if Barclays and LOQBOX both went bust (they won’t) you are protected.”
LOQBOX was founded in 2012 by Tom Eyre and Gregor Mowat with the mission to help people who have found themselves excluded from accessing fairly priced credit either because they are young with little or no credit history, or because they have made past credit mistakes.
It’s worth noting that LOQBOX isn’t actually a lender – it acts as an “introducer”. Credit is provided by DDC Financial Solutions. If you take out a LOQBOX, you are effectively accepting a finance agreement from DDC financial solutions. Your monthly savings are the repayments on that agreement, which will build up your credit history over time. The finance that DDC provides has no charges or interest, essentially making it a cost-free way to improve your credit rating. However, you must be prepared to open an account or ISA with one of LOQBOX’s partner banks at the end of the term. Or, you can pay a fee to use one of your existing accounts.
LOQBOX is authorised and regulated by the Financial Conduct Authority.
You’ll also receive emails with expert tips on money management and how to continue saving. Pro or con? You decide.
Because there’s little risk involved, there aren’t many eligibility requirements. To be accepted you must:
You must also be willing to open a savings account or ISA with one of LOQBOX’s partner banks, or otherwise be willing to pay a £30 fee.
The boost to your credit score and the fact that it’s free make it easy to look past LOQBOX’s flaws. For people looking to access a loan right now, LOQBOX isn’t the answer. But if you’re serious about building a positive credit history and accessing lower rates in the not-too-distant future, we think LOQBOX is a smart choice.
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