Have you used Loqbox?

wharty

Hi

Myself and my wife are rebuilding our credit history (I know scores are made up by the way).

We have taken out a credit builder card each and I have just signed up with Loqbox for £300 per month.

I have seen plenty of good reviews and done as much research as possible but wanted to hear from people who have actually used them and could tell me how they are finding it?

Has it helped in anyway?

Thanks

[Deleted User]

I wouldn't use it personally.

Read a lot of reviews online where people have said that they never reported any payments to the CRA

SnowTiger

TSB has jumped in to bed with LOQBOX , but doesn't appear to offer a savings account masquerading as a loan yet:

TSB is partnering with start-up ‘LOQBOX’ to provide UK consumers with alternative options to build their credit history that doesn’t rely on spending and paying off debt but instead building their savings.

I'm a little surprised one of the big boys is willing to manipulate credit reports in this way.

No interest paid, meaning someone squirling away £300 a month is missing out on interest on ~ £1,800. Regularly using a (low end) credit card may have a similar affect.

betweenarockandhardplace

I've been using loqbox since January 2018, saving £20 a month and the information is reported to all credit ref agencies, started showing within a month of opening the account, it's been fine for me so far

Ben8282

This sounds like a glorified version of the sort of 'loan' offered by the likes of Cashplus.
One potential downside that I can see is that the OP's £300pm has presumably be reported to the CRA's as a loan for £3600, balance decreasing each month as the 'repayment' is received.
The small amount of the 'loan' offered by Cashplus is too small to affect anything but take out one of these loqbox 'loans' for too large an amount and you may well hurt your ability to obtain credit in the short term until the 'loan' has been repaid.

wharty

Hi after reading posts here and doing a little bit more research I have decided to cancel Loqbox.

Instead I have been accepted for a capital 1 card and an Aqua card.

Thanks for all the responses.

Bakerfrog

I opened one however as my credit score has improved and continues too in other ways I decided to close and utilise the money somewhere else more useful. My reasons below:

1. Loqbox have not reported or shown on any of the credit agencies since I have taken this out in Jan. (So it's not them that have helped improved my score)
2. I tried to close the account and take the money back but was told I had to open a new bank account affiliated to them (they get a kickback). I don't want to apply for more credit/have more searches on my file!
3. The information regarding point 2 is not 100% clear all throughout there website.
4. if you don't open a new account via them they will charge £30. Again something that is not clear.

I am fortunate I do not need the money just want it to be better utilised in my chip account however anyone else that is in vital need of it will be charged £30 or have to take out an account which they may not need or even be accepted for!

[Deleted User]

Paying any money to improve a pretend score is insane.

SlovakianGuy

Bakerfrog wrote: »

Loqbox have not reported or shown on any of the credit agencies since I have taken this out in Jan. (So it's not them that have helped improved my score)

Mine works fine. And it shows on your credit report as DDC Financial Solutions, not as Loqbox.

DogFace

I’m currently on a DMP with defaults (about 3 years ago). I’ve been trying to rebuild using Loqbox, Credit Ladder and a Marbles credit card. My credit rating has recently massively increased (from the worst category to being almost in the middle one).

Credit Ladder: I’m not actually sure if it’s showing
Marbles: I’m a lot closer to my limit than I would like and I don’t think it’s massively improving anything.

So I’m crediting (excuse the pun) Loqbox with this change... Should I not?

The reason I came here though was to ask a couple questions:

I have about 2 months left on my Loqbox. Was the “open a new account to claim your money” always their policy? I don’t remember that.. I guess it’s not a big deal but it is going to bring down the average length of my accounts.

I am now in a position to pay in more than £20 a month. Is there no way to increase your payment? Should I close the account and start a new one with a higher payment or just wait until it ends? Why do they “not recommend” that you open more than one at a time?

gionnetto

SnowTiger wrote: »

No interest paid, meaning someone squirling away £300 a month is missing out on interest on ~ £1,800. Regularly using a (low end) credit card may have a similar affect.

You miss the point of Loqbox. Loqbox is for people who have no credit history, just like Cashplus Advance. These products are for people who need to build their history. Obviously, once you can qualify for a subprime credit card you don't need them. But if you can't, they might be a great option as a starting point.