Loqbox 1% on money if CR is not 10 points higher.

SlovakianGuy

PDL are in a different section of your credit file, so, no.

The point is to get a history of paying off something. Especially for people who have difficulties to get any real loan or a CC.

DCFC79

LeslieAlan42 said:

My Loqbox had £240 in it and 1 year ago my CR was 484, I have sent screen shot of my CR and have now had the £240 back, but CR now is 471. How and will I get the £2.40? 

Whats the £2.40 for ?
Are you refering to the £240 ?

cymruchris

Taken directly from the FAQ on the Loqbox website.

cymruchris

D3xt3r5L4b said:

A £2400 loan just screams PDL.

Plus the whole point is to build up your (fictitious) score which will likely drop again after opening a bank account.

Which just puts more unnecessary fear into people. 

It's not recorded as a pay day loan - you'd be better off researching the facts rather than putting unnecessary fear into people.

It's aim is to provide a stable, managed account over a 12 month period, that eventually shows as settled, which is a positive factor on your credit history if you're in a position that you have very little on file, or a lot of previous negative. As I've said to you before (and I know you'll have a good memory on this) it's not for everyone, but it has it's place. There are people that it can be useful for, and it certainly benefitted me. I wasn't worried about the fictional score, or any points promise - just the addition of a fully settled loan account to add to the positive history that I'd been building on my file. 

D3xt3r5L4b

The only “place” it should be is shut down.

There are far batter ways of getting a credit history - if for example one is not eligible for a credit card then they should wait until they are. 

ceremony

D3xt3r5L4b said:

The only “place” it should be is shut down.

There are far batter ways of getting a credit history - if for example one is not eligible for a credit card then they should wait until they are. 

I agree with you that things like BITS (or the Cashplus credit builder) where the person is effectively "paying for an increase in their score" are a complete scam and are ripping people off, but I can see situations where Loqbox can be useful.

If someone currently only has a basic bank account and they want a better one, they could start saving with Loqbox which puts some positive history on their file, then go through them to open a mainstream account and get all their money back after the 12 month period. They're essentially using it as a savings account (and interest rates on many mainstream bank savings accounts are really bad right now so that's no loss if the user is only paying in £20 a month or similar).

Some credit building tools are a complete rip off, I agree, but this one costs the customer nothing if used properly and could be a useful psychological tool to help someone who is terrible with money get into the habit of saving.

D3xt3r5L4b

ceremony said:

D3xt3r5L4b said:

The only “place” it should be is shut down.

There are far batter ways of getting a credit history - if for example one is not eligible for a credit card then they should wait until they are. 

I agree with you that things like BITS (or the Cashplus credit builder) where the person is effectively "paying for an increase in their score" are a complete scam and are ripping people off, but I can see situations where Loqbox can be useful.

If someone currently only has a basic bank account and they want a better one, they could start saving with Loqbox which puts some positive history on their file, then go through them to open a mainstream account and get all their money back after the 12 month period. They're essentially using it as a savings account (and interest rates on many mainstream bank savings accounts are really bad right now so that's no loss if the user is only paying in £20 a month or similar).

Some credit building tools are a complete rip off, I agree, but this one costs the customer nothing if used properly and could be a useful psychological tool to help someone who is terrible with money get into the habit of saving.

It doesn’t set a psychological precedent of saving though. It sets one of “improving ones score” which is wrong. Especially by way of a short-term loan. 

Yahoo_Mail

ceremony said:

D3xt3r5L4b said:

The only “place” it should be is shut down.

There are far batter ways of getting a credit history - if for example one is not eligible for a credit card then they should wait until they are. 

I agree with you that things like BITS (or the Cashplus credit builder) where the person is effectively "paying for an increase in their score" are a complete scam and are ripping people off, but I can see situations where Loqbox can be useful.

If someone currently only has a basic bank account and they want a better one, they could start saving with Loqbox which puts some positive history on their file, then go through them to open a mainstream account and get all their money back after the 12 month period. They're essentially using it as a savings account (and interest rates on many mainstream bank savings accounts are really bad right now so that's no loss if the user is only paying in £20 a month or similar).

Some credit building tools are a complete rip off, I agree, but this one costs the customer nothing if used properly and could be a useful psychological tool to help someone who is terrible with money get into the habit of saving.

It's completely farcical though.  It's not a real loan and if you miss a "repayment" then they mark your debt as settled and that's the end of it.

I'm surprised these things aren't being cracked down on, they make a complete mockery of the CRA system.  But I suppose the CRAs don't really care about the integrity of their data if someone is handing them money.