Build your credit history while you save with LOQBOX
- Choose what you want to save – from £20 to £200 a month
- Build your credit history with the credit reference agencies
- Leave with an improved credit history, plus all 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 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.
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