'Credit Building' savings accounts

wardley

Hi,

Just wondering, are 'credit building' savings accounts actually worth setting up if you've got a generally poor score?

So, these are accounts with companies like Loqbox that seem to be spamming my Facebook at the moment where you setup a DD with them for a regular amount and then they presumably report back to the credit agencies that you're meeting your 'repayments'.

At the end of the period, you get your money back.

I suppose the 2 questions for this is:

1) Do they actually report back to the credit agencies correctly on time?
2) Pretty sure there's no interest paid on your 'savings' with them. Is it better just to save normally?

Has anyone tried one of these and seen an improvement in their credit rating?

[Deleted User]

No.

Just use a credit card to build your history.

Put your savings where they will earn the most for you.

Even if people have used them, they won't know whether lenders are rating them more highly as a result.

[Deleted User]

Avoid at all costs

Use a credit card and clear in full each month after the statement

This will build your credit history and show lenders you can be trusted with paying back credit borrowed