Loqbox

You don't get double your money back, you get your money back* (can I attach multiple * to that...)

It is legit, I've seen it plastered over Facebook but also another site (ClearScore I think)

Companies are ICO & FCA regulated. I was tempted to do it, but I've got a car loan, and credit building cards, so not really worth it. For somebody with severe credit file issues, that can't get any cards, it may well be worthwhile

From my understanding:

You agree to 12 x £??? payments (£25 to £250). A loan company 'loans' you the total amount (e.g. if you agree to £100 per month, they'll loan you £1,200) at 0% for the year and setup a hire purchase or similar for a 'voucher' valued at £1,200. You repay the loan at £100 per month for you Loqbox 'voucher'.

At the end of the 12 months, you turn your voucher into cash, and get the £1,200 back.

You can do this earlier, e.g. at 6 months you can redeem your 'voucher' and you'd get the £600 back you'd paid in, the other £600 goes to the finance company who settle your account.

Does all seem legit, I've got the contracts etc but not executed them - I suppose the only issue is whether you trust the company to still be operating in 12 months time to return your funds to you. If they aren't operating, are they covered by the FSCS.

*you do have to jump through some hoops*

Benefits
Will improve your credit file, if it's severely trashed, as it reports as 12 x monthly repayments to a £xxx loan, successfully completed

Negatives/Potential Issues
Miss a payment and your file is screwed (they're obliged to report the payments)

You get no interest on your savings/loan repayments etc - so are forgoing £X in interest. If you could get a 5% regular saver instead you'd have approx £78. So that's 1 'issue'

You HAVE to apply for one of their "partner products" to get your money back. This includes ISAs, bank accounts etc. I've asked them how many apps you need to make, since excessive searches will undo the good work - they say just 1 (although I couldn't see this written into the contract). If you are declined, your money will then (allegedly) be sent free of charge.

If you don't want to apply for a partner product, they will charge you (£30 IIRC).

Obviously they get commission from sales of the partner products. I've asked them for a list, but they won't give it to me as it's ever changing. APPARENTLY basic bank accounts are included, but unless that's in writing I wouldn't trust it.


So it short, say you are doing the £250 a month option, you're losing access to £75 in interest, giving them commission if you're accepted (and forgoing any cashback or offers you may be able to get from QuidCo etc) and paying them £30 extra for the privilege if they deem you haven't properly applied for a product.

So I'd say it is possibly legit in as far as you won't lose money/it's not an outright scam (lender are legit, haven't checked on the actual savings side, as I'm not taking them up on their 'offer').

It's certainly questionable in terms of benefit (to the majority of users) and questionable terms/conditions/hoops to get through to get your money back.

Assuming the money is protected, it's massively better than "cashplus with credit builder", but I'd say it's true usefulness is extremely limited (just as the Cashplus card with a loan via APS is useless for most people)

MSE labelling the likes of 'credit improver' a best buy is a disgrace, in my opinion.

We'll see how long this post lasts....

I've complained to them before that if somebody's file is so trashed they can't get a Capital One Secured Card, or a low limit Aqua Start, or a Vanquis Card, they are essentially 'beyond help' - that sounds very harsh, but the point is true - they have ongoing credit file issues, that need to be resolved BEFORE they look at improving - whether it's via this, Capital One or anyone else.

Throwing money at credit improver will NOT improve their situation. Just because this is a 'free' (subject to jumping through hoops, and ignoring lack of interest benefit) version of that/a very similar scheme, doesn't make it good!