FAQ

ABOUT LOQBOX

What is LOQBOX all about?

With LOQBOX, you build your credit history, improve your financial management and grow your savings – all at the same time… for free.
It works like this:
1. You select how much money you want to save each month – your monthly savings payments.

2. You buy a LOQBOX from us. A LOQBOX is a digital voucher that costs one year of your monthly savings payments.

Your LOQBOX:
• Belongs to you
• Is always worth its purchase price because we promise to buy it back from you in cash, for the same amount you bought it for, whenever you want
• Gives you access to our financial educational programme
• Gives you access to exclusive savings and credit offers

3. Just like when you buy a car on finance, you don’t pay for your LOQBOX upfront. You pay for it using 12-month interest-free finance from our sister finance company, DDC Financial Solutions. This way, instead of putting your savings into a bank account, your monthly savings payments are transformed into monthly finance repayments. Each repayment builds your credit history, showing future lenders that you can responsibly manage finance.

4. Whenever you want, you can unlock your LOQBOX to release your savings. This means that we buy it back from you for the same amount you originally bought it for, using the proceeds to automatically settle any outstanding balance on your finance before returning every penny of your savings to you.

Why haven't I heard of LOQBOX before?

Because LOQBOX is a new solution to a difficult problem. We weren’t happy with the status quo that sees lots of people locked out the of the credit system, so we set out to fix it.

How much does LOQBOX cost?

If you open a new account for your savings, it’s free. If you want the money to go straight into your existing account, you can use our premium flexi-unlock for £30.

Is LOQBOX really completely free?

It really is but we need you to help us.

When you unlock your LOQBOX, we ask you to open a new account or take an ISA with one of our partners for us to pay your savings into. We get paid for this, which is how we can make LOQBOX completely free for you.

If you try, but really can’t open an account with any of our partners, we will pay your savings directly back into your existing account for no charge.

How long does it take to get a LOQBOX?

The fastest we’ve seen is 3 minutes, but most people will need 5.

I want a LOQBOX– what do I need to do?

You can get started right away.

It only takes 5 minutes to sign up online.

You pay nothing up front and only need a bank account which allows Direct Debits, an email address, a phone number and a residential address. Simple.

Do I need to pass a credit check?

No. You won’t be credit checked with LOQBOX.

Why should I use finance?

Using finance helps build your credit history.

If you wanted to build your credit history while saving £50 a month, you’d buy a LOQBOX worth £600 (£50 x 12 monthly payments) and finance it interest free. Each monthly payment is reported to the credit reference agencies, helping to build your credit history and improve your creditworthiness. Just don’t miss any payments, because this can damage your credit score.

You can buy a LOQBOX without the finance, but this won’t have any impact on your credit report and you’d need to pay for it up front.

What if I want to ask you something?

No problem. We’re happy to answer as many questions as you like. Drop us an email at support@loqbox.co.uk. We normally respond within the hour.

Who are DDC Financial Solutions?

They’re our partner finance provider. When you sign up for a LOQBOX, you accept a loan agreement with DDC to pay for it. Your monthly savings are the repayments on that loan, building your credit history over time. The finance DDC provides has no charges or interest.

LOQBOX MECHANICS

Can you tell me exactly how LOQBOX works?

With LOQBOX, you build your credit history, improve your financial management and grow your savings – all at the same time… for free.

Here is a step-by-step explanation of how LOQBOX works with an example…

  1. Firstly, you select how much money you want to save each month – your monthly savings payments. You are then allocated a LOQBOX, a digital voucher that costs one year of your monthly savings payments. Your LOQBOX:
    • Belongs to you
    • Is always worth its purchase price because we promise to redeem it in cash, for the same amount you bought it for, whenever you want
    • Gives you access to our financial educational programme
    • Gives you access to exclusive savings and credit offers

 

EXAMPLE: John Smith wants to save £100 per month for a year. This means he will save 12 x £100 = £1,200 over the full year. So we set up a LOQBOX worth £1,200.
  1. Now you’ve selected the value of your LOQBOX, you can use 12-month interest-free finance from our sister finance company, DDC Financial Solutions, to buy it. This transforms your monthly savings payments into finance repayments which means that each payment builds your credit history, showing future lenders that you can responsibly manage finance.
EXAMPLE: DDC Financial Solutions provides John with finance of £1,200 to buy his LOQBOX. Just like buying a car, John does not receive the money from the finance into his bank account. This is paid by DDC Financial Solutions direct to us. As John chose to save £100 per month over the year, his finance repayments are £100 per month for 12 months.
  1. Each monthly repayment reduces your finance balance. As your finance balance reduces, the amount you would receive from unlocking your LOQBOX increases by the same amount. We automatically transfer your LOQBOX Funds monthly into our ring fenced, independently verified, client account with Lloyds Bank. Your LOQBOX funds in this account are protected by the Financial Services Compensation Scheme (“FSCS”) up to £85,000. Whenever you want, you can unlock your LOQBOX to redeem your savings. The first part of the redeemed funds is used to  settle any outstanding balance on your finance before we return every penny of your savings to you.

 

EXAMPLE: John now owns his £1,200 LOQBOX which he can unlock at any time for the full value of £1,200. He also owes DDC Financial Solutions finance of £1,200 which he will repay at £100 per month. When he unlocks his LOQBOX, he gets back the full value of the LOQBOX, less any outstanding balance on the finance due to DDC Financial Solutions.
  1. At the end of the year, or sooner if you choose, you can unlock or redeem your LOQBOX for its full value. If you unlock at the end of the year, your finance will have been fully repaid so the full amount of the LOQBOX is yours. If you unlock before a full year has passed, the outstanding balance on your finance is automatically settled and the remainder, equal to the total of all your payments so far, is yours. It’s all set up so that you always get back your savings when you unlock.

EXAMPLE: As John makes his monthly payments of £100 per month, the balance of his finance reduces by £100 each time. Each month, this data is reported to the credit reference agencies to help other lenders see that John is a responsible borrower who can manage monthly payments.

If John unlocks his LOQBOX after making all 12 finance repayments, he will receive the full £1,200 that he has saved.

If he unlocks his LOQBOX before a year has passed, he will receive £1,200 minus any outstanding balance on his finance from DDC Financial Solutions.

So, if he unlocked his LOQBOX after making 4 payments of £100:

His outstanding finance balance would be £1,200 less 4 monthly payments of £100 = £800

He would receive his LOQBOX proceeds of £1,200 less the outstanding finance balance of £800 = £400, exactly the same amount as he has paid.

  1. We know that almost all savers are less likely to touch their savings if they keep them separate from their day-to-day funds. We also know that almost everyone would like to continue saving once they have started. For these reasons, when you unlock your LOQBOX, we help you to find a way to continue your saving habit. This might be by opening a free new bank account or it might be by taking an ISA or other savings solution. When you unlock your LOQBOX, we present a selection of these different ways for your redeemed LOQBOX proceeds to be paid back to you. When you select one of these options, we get paid by our partners which is why LOQBOX is free for you. Once you have selected the option that is right for you and your new account is open or your ISA has been set up, your money is transferred straight away.
EXAMPLE: After 12 months, John unlocks his LOQBOX. He chooses to open a new bank account with one of our partner banks. As soon as his account is open, we pay his LOQBOX proceeds of £1,200 into this account.
How many months does LOQBOX last?

12 months. But that doesn’t mean you have to be tied in for 12 months. You can unlock your LOQBOX at anytime and release your savings.

What is the smallest/biggest LOQBOX available?

You select the value of your LOQBOX as the amount you would like to save over a year. If you want to put aside £50 per month for a year, then the value of your LOQBOX would be £600 and your monthly payments would be £50.

The smallest LOQBOX we offer is £240, based on savings payments of £20 per month.

The largest LOQBOX we offer is £2400 based on savings payments of £200 per month.

The main thing to remember is that your monthly payments must be affordable. If you miss any payments you will damage your credit history which will make it harder for you to get credit in the future.  None of us want that, so make sure you pick an amount that you can comfortably afford to put aside each month.

When do I get my money?

When you buy a car, you don’t receive the money from the car finance into your bank account. Instead, you drive away in your car and start to pay off your finance. Just like buying a car, when you buy your LOQBOX, you don’t receive the money from the finance into your bank account. You receive your LOQBOX and, if you choose to finance it, the money is paid by our sister finance company, DDC Financial Solutions, direct to us.

When you unlock your LOQBOX, you receive the full value of your LOQBOX, less any outstanding balance on your finance. To help you keep saving, we will present you with a selection of different ways for your LOQBOX proceeds to be paid back to you. This might be by opening a free new bank account or it might be by taking an ISA or other savings solution. When you select one of these options, we get paid by our partners which is why we can make LOQBOX free for you. Once you have selected the option that is right for you and your new bank account or ISA has been set up, we will transfer your LOQBOX proceeds there on the same day you tell us the account or ISA details. This is usually available instantly but can sometimes take up to three days.

What if I don’t want to open a free new bank account or take an ISA at the end?

When we were designing LOQBOX, our research told us that almost everyone would like to continue saving once they have started and would be less likely to touch their savings if they keep them separate from their day-to-day funds. So, opening a free new bank account or taking an ISA will help you to protect your LOQBOX savings and continue your saving habit. It’s also how we get paid. When you open a free new bank account or take an ISA, we get paid by our partners. This is how we can make LOQBOX free for you.

Can I unlock my LOQBOX savings into any account?

Yes, but not for free. It’s one of our Premium Add-ons.

When it’s time to unlock your LOQBOX, we normally help you set up a new account with one of our partner banks. They pay us a little for each account we open, which is how we can keep LOQBOX completely free for you.

But so many customers asked us about this issue, we wanted to find a way to give them the flexibility they were looking for. We came up with Flexi Unlock – a Premium Add-on which, for £30, lets you unlock your LOQBOX savings into your existing account instead.

How should I select how much money to save each month? What would be the monthly finance repayment equivalent of my monthly savings payments?

Lenders are more likely to approve a credit application if they can see you already have a history of managing finance. It’s also helpful if you have already managed monthly repayments that are similar in amount to the repayments you will have to make to them. LOQBOX can help you do this.

As a guide, we have gathered some information to help you see what types of credit are serviced by different levels of monthly repayments.

£20 per month is the equivalent of a basic mobile phone contract.

£50 per month would repay a £1,000 credit card with an APR of 18.9% in two years.

£100 per month is the equivalent of the monthly repayment for a £3,250 loan over three years with a 7% APR.

£200 per month is the roughly the same as the monthly repayment for the finance on a second-hand Audi A1.

Whatever amount you choose to save with LOQBOX, it’s important that the amount is affordable. If you miss payments you will damage your credit history.

What payment methods are available?

All LOQBOX finance repayments are collected by DDC Financial Solutions using Direct Debit.  This is the safest method of payment for all our customers because each payment is covered by the direct debit guarantee.

The payment will appear on your bank statement as either ‘LOQBOX – DDC’ or ‘DDC Financial Solutions’.

Can I change my payment date?

No. Once your LOQBOX account has been set up we are unable to change the payment date.

Are the monthly payments collected automatically?

Yep! All monthly payments are collected by Direct Debit. This is set up at the start and is automated for you so there is no need to manually pay anything. If there is ever a problem with the payment, you’ll get an email to let you know. All payments are covered by the Direct Debit Guarantee for your protection.

When do I make the first payment?

Each repayment is collected by Direct Debit. Because this takes a little while to set up, your first repayment is normally collected the month after you buy your LOQBOX. You can pick the date that each repayment is taken.

Can I unlock my LOQBOX early?

Yes, whenever you want!

You can unlock your LOQBOX at any time to release your savings. This means that we buy it back from you for the same amount you originally bought it for, using the proceeds to automatically settle any outstanding balance on your finance before returning every penny of your savings to you.

Can I have more than one LOQBOX at a time?

No. We only allow people to have one LOQBOX at a time. When one LOQBOX ends we would be more than happy for you to open another.

How's LOQBOX different to a credit builder credit card?

Credit builder credit cards are offered to people who don’t qualify for prime credit cards and need to prove they can manage finance responsibly. They can be a great tool for building your credit worthiness but they also have some downsides for customers.

To get a credit builder credit card you have to pass the application process, and this can often result in more than 60% of applications being rejected. LOQBOX is available to everyone with no credit checking.

Once you get a credit builder credit card you can use it like any other credit card, which means you can use it to buy things. As with all credit cards, you also get additional purchase protection which can be very helpful in some circumstances. LOQBOX doesn’t give you that facility because it isn’t a credit card product.

Credit builder credit cards generally have very high APR’s, this is because the risk to the lender is greater. If the balance is cleared in full each month then there is usually no interest charge, which is great. If the balance isn’t cleared in full each month the interest payments can be expensive. LOQBOX is free.

Once you have a credit builder credit card you need to remember to use it each month and pay it each month.  LOQBOX repayments are set at the start and collected by direct debit, so the only thing you have to do each month is ensure that you have sufficient funds in your account to cover your monthly payment.

As with any credit product, both credit builder credit cards and LOQBOX can damage your credit history if you don’t make the repayments.

Credit builder credit cards, like any credit card, can have variable credit limits. This means if the credit limit is increased there could be a temptation to overspend and get into unmanageable debt. This isn’t a problem with LOQBOX as the finance amount and monthly repayments are fixed from the start.

So, to summarise, credit builder credit cards are great tools if you can get one and use it sensibly. LOQBOX doesn’t offer the spending options of a credit card but is more accessible and presents fewer risks. If you want to spend, a credit builder credit card is for you. If you want to save, LOQBOX is the answer. Or, you could of course use both!

Are you a lender?

No. We don’t offer any finance. All finance is provided by our sister finance company, DDC Financial Solutions.  DDC Financial Solutions is authorised and regulated by the Financial Conduct Authority, FRN 678579.

Are you a credit repair company?

Nope.

Credit repair companies try and change or remove information on your credit reports, usually for a hefty fee. We don’t make changes to your credit report, nor will we advise on any aspect of your historic credit information. LOQBOX helps you to show you can responsibly manage finance now and in the future while you save.

YOUR MONEY AND YOUR DATA

Is my LOQBOX secure?

Yes. 100%.

Every month, we transfer your LOQBOX Funds into a ring fenced, independently verified, client account with Lloyds Bank. Your LOQBOX Funds in this account are protected by the Financial Services Compensation Scheme (“FSCS”) up to £85,000.

How do I reset my password?

Visit https://www.loqbox.co.uk/go/login to reset your password.

How do I check my outstanding finance balance? Or next payment date?

Your LOQBOX members’ area gives you access to all of this information.

When you log in, you will be able to see the value of your LOQBOX, the amount of any outstanding balance on your finance, the amount you would receive if you unlocked your LOQBOX at that point, your full finance repayment history and the date of your next finance instalment – all on one page.

What if I can’t make a monthly finance repayment?

The first thing to do is to contact us. DDC Financial Solutions can give you more time to pay if you are struggling to make a monthly payment on time, but only if they are aware of the problem. Just drop us an email at support@loqbox.co.uk if you are having problems.

You can also unlock your LOQBOX which will settle any outstanding balance on your finance and close your LOQBOX.

Remember, if you miss a monthly finance repayment this will damage your credit history and will make it harder for you to borrow in the future.

When will I see the finance on my credit report?

You will normally see the finance details appear on your credit report by the end of the month after you have made your first payment. Finance data is reported by DDC Financial Solutions once a month for all activity in the previous month. After the first payment has been reported, your credit record should update on a monthly basis.

Do you sell my data? Will I get spammed?

Absolutely not.

While you own your LOQBOX, we’ll occasionally email you with useful finance tips and offers we think you’ll like, but that’s it. And you don’t have to use them if you’re not interested.

We use bank-level encryption to make sure your data is safe and we never, ever sell your contact information or use it for any purpose you don’t consent to! We hate SPAM as much as you do.

What information do you keep about me?

We keep limited information about you when you use LOQBOX. For more details, please see our privacy policy and terms of use.