Loqbox

EMMAH1410

I took out a Loqbox 7 months ago but would like to unlock it early. If I unlock early will I receive a penalty on my credit file? Or is there an option of paying off the balance in order to still receive the 25 points on the credit score. I have tried emailing Loqbox twice now and received no response.

[Deleted User]

What do you mean by '25 points on your credit score'?

The CRAs make up the pretend scores. Not Loqbox.

The account will simply be shown on your files with regard to your management of it. As long as you haven't defaulted on it or similar, there will be no negative markers.

EMMAH1410

Hi ZX81
When i took out my loqbox i agreed to paying £5 per month so thatvthey would guarantee thatvmy credit score will increase by 25 points at the end of the term.

[Deleted User]

Oh dear. They have no control over the scores.

And since the scores are not real in any case, it doesn't matter.

Loqbox isn't a great way of building credit history, so if you want to close it, close it.

yksi

The only way they guarantee this is by a long string of conditions. One of them is that you continue to pay on time every month and don't do anything else that would hurt your credit history (like payday loans, yarda yarda yarda). The thing is, if you don't do the "anything else" part, your credit history will improve over time anyway. Loqbox does show a stable history of repayments on your credit files, which is useful for people who can't get most other accounts or can't get credit, but it has limited uses apart from that.

You need to speak with Loqbox and make sure you are 100% sure of the penalties before you end the agreement. Forget about the score, lenders don't even use it!

cymruchris

EMMAH1410 said:

Hi ZX81
When i took out my loqbox i agreed to paying £5 per month so thatvthey would guarantee thatvmy credit score will increase by 25 points at the end of the term.

If you're paying £5 a month - and are already over half way through the year - why not let it run to conclusion? At the end you'll have a fully settled account which would aid your credit history. Ending it sooner doesn't involve any penalty as such, but it's not recommended if you want to show future lenders stability.