Why do I need a Credit Card

Willing2Learn

adindas wrote: »

Loqbox again !!! Loqbox again !!!

Going by some of the threads on this forum, it does appear the Loqbox does have a use to people who have just arrived in this country, are not on the ER, are not eligible for a SIM-only contract, cannot sign up to utilities on a Direct Debit and cannot open an everyday bank account from a regular high street bank. In that specific type of case, some MSE members have said that Loqbox helps to build a little bit of positive data in their credit file.

For the record, I don't believe Loqbox has any other benefits and should not be used to rebuild a previously toxic credit file.

Ben8282

To return to the OP, the reason the OP is being advised to get a credit card to improve their credit score is because whoever is making this recommendation will gain financially when the OP applies for the recommended product through their link/site.

As for the discussion above about certain products being mentioned several times, and without offering any opinion on whether or not what has been suggested is the case on this thread or not, I have often suspected the same thing when I see names of products mentioned excessively or for no apparent reason. There are certain products, which I will not name, which come to mind. Certain products which are always mentioned more than others. Certain products which certain posters always come along to recommend whenever the opportunity arises. I have my own private nickname for them - the XXX brigade. In fact, I think it would be naive to think that there are not posters on this forum who sign up for the sole purpose of promoting a particular product, although I am not saying that anybody on this thread is such a person, just as it would also be naive to think that there are not posters on this forum who sign up for the sole purpose of posting something of questionable credibility so as to elicit a response of disbelief so that they can make trouble for established posters by reporting them for not being sufficiently nice to the newbie concerned, although once again I am clarifying that I am not saying that anybody on this thread is such a person,

Willing2Learn wrote: »

Going by some of the threads on this forum, it does appear the Loqbox does have a use to people who have just arrived in this country, are not on the ER, are not eligible for a SIM-only contract, cannot sign up to utilities on a Direct Debit and cannot open an everyday bank account from a regular high street bank. In that specific type of case, some MSE members have said that Loqbox helps to build a little bit of positive data in their credit file.

For the record, I don't believe Loqbox has any other benefits and should not be used to rebuild a previously toxic credit file.

Concerning loqbox. I have said much the same thing as has been written in the above post, but regarding the credit builder loans offered by Cashplus. I think that what Cashplus offers is something that will put something on an otherwise completely blank credit file, to kick start the credit file into life as it were. But only that and nothing more.
I have some problems with loqbox. Without disagreeing with what has been said above, the main problem that I see is that, unlike the Cashplus loan which is for a very small amount, the loqbox loan can be for whatever amount the user chooses. This will therefore create the (false) impression of the user having considerable debt if too large an amount is chosen which could have an effect opposite to what is desired as it would give the impression that the user is repaying quite a substantial loan and may therefore have a detrimental effect on their ability to obtain credit in the short term for this reason, although it has been argued that as such individuals could not obtain credit anyway this is not important. The other thing that I don't like about loqbox is the fact that at the end you either have to open an account of their choosing or else pay to get your money back.

arrond

Car insurance, mobile phone contracts, bank account overdrafts, etc will all usually show on your credit report. A credit card has no more positive impact than one of these other accounts and I would recommend not taking out a credit card (just to build your credit history) if you don't feel comfortable.

Clearscore will be getting commission from the credit card company if you apply through their site.