Your LOQBOX questions

Can I crack open my savings any time?

Technically, yes. When you break open your piggy bank, you get back the amount you’ve paid so far. Anything you haven’t paid back is used to settle the outstanding loan, so you can unlock whenever and never be left in debt. But if you haven’t made enough regular payments, unlocking early could harm your credit history.

What if I struggle to keep up the monthly payments?

You should quit LOQBOX right away. You’d miss out on growing your credit history, and we’d report your loan as settled debt, but unlocking early is far better than missing a payment, which would harm your credit history.

Could using LOQBOX harm my credit score?

The LOQBOX credit builder is designed to work over a series of 12 monthly payments. Make all 12, and you should see an increase in your credit score.

If you quit LOQBOX early, you’re unlikely to see the full benefit. Particularly if you quit in the first few months. Most LOQBOX users see their credit score dip initially, before heading in the right direction. We call it the ‘Credit Tick’, and it’s totally normal. But, if you quit in the middle of the Credit Tick, you could leave LOQBOX with a lower credit score than you started with.

If you miss a LOQBOX payment, we’d have to report it to the CRAs, which would harm your credit score. But you can always unlock to avoid missing a payment, so this should never happen.

How much could I save with a better credit score?

Growing your credit profile can save you thousands on the interest you’ll pay to borrow money – things like credit cards, loans and mortgages. To give you an idea, here’s how much different increases could save you on average.

 

+10 points saves you +25 points saves you +50 points saves you
On a £10,000 loan* £219 £546 £1,088
On a £5,000 credit card balance† £450 £1,000 £1,750

 

* 60-month term, starting APR 14.9%APR

† £100 monthly repayment, starting APR 19.95%APR

Isn’t there a quicker way to a better credit score?

Afraid not. Things like setting up payments with your bank take time, and the credit reference agencies don’t report until 30 days after they hear from us, which is why it takes a few months to see changes.

The sooner you start, the sooner we can begin reporting your payments. And, with debit card payments now available, there’s never been a faster way to get up and running.

> Sign up with a debit card

Can I change my first paying in date?

Sorry. Once you’ve set up a LOQBOX, your first payment date is set and you cannot make changes to it.

The only workaround would be to quit and unlock your existing LOQBOX (because you’re yet to make your first payment, you wouldn’t need to open a free account), then set up a new LOQBOX with the different first payment date.

 

Can I change or delay my monthly paying in date?

Yes. You can move any payment (except your first one) to a different date in the same calendar month (as long as it’s not in the past, of course). Just log in to My LOQBOX, find ‘Personal details’ and choose ‘Amend my details’.

When is my paying in date?

You can find your payment date any time in My LOQBOX. Just log in and look for ‘Payment history’.

You can change this date at any time to another day within the same calendar month (as long as it’s not in the past, of course).

Can I pay in weekly or every four weeks, rather than monthly?

Nope. We have to take your payment on the same day of each month. This date is set when you sign up for LOQBOX.

How do I change the card I use for paying into my LOQBOX?

Just log in to My LOQBOX, find the ‘Personal details’ section and click ‘Update my card’. Then just follow the onscreen instructions to set up your new card.

Can I switch to paying in by debit card?

Once you sign up to pay in using Direct Debit, you can’t switch to a different payment method.

But if you haven’t joined LOQBOX yet, you can now choose which payment method you pay in with when you sign up.

> Sign up with a debit card

> Sign up with Direct Debit

What do DDC Financial Solutions have to do with it?

They’re our sister finance company and the people who’ll provide your interest-free loan.

Card Payment Pilot Scheme answer: How do I pay arrears? How do I pay a missed payment?

If your LOQBOX payments are made by card, we will only attempt to collect the payment once.

If you miss a payment, you’ll just need to log into your LOQBOX members’ area and request we take the payment again by clicking “Pay now”.

How LOQBOX works?

How does LOQBOX credit builder work?

LOQBOX grows your credit score by helping you prove your creditworthiness to credit reference agencies (CRAs) – the people who compile and keep your credit report.

In turn, lenders are more likely to trust you with their money, giving you better borrowing deals and saving you on the interest you’ll pay on things like credit cards, loans, mortgages and phones.

Here’s how we do it…

 

Step 1: SAVE

You decide how much you could comfortably save over a year. We lock away a 0% loan for that amount (issued by our finance partner DDC Financial Solutions) in your LOQBOX. Think of it like a digital piggy bank.

Let’s say you wanted to save £1,200 in a year. We’d lock away a loan for that amount, which you’d repay in 12 interest-free monthly payments of £100.

 

Step 2: GROW

We report your monthly loan repayments to the three main CRAs, which shows them you can handle credit, improves your creditworthiness and grows your credit score.

A year of regular payments gives you the best shot at growing your credit score, but you can quit LOQBOX any time and ‘unlock’ the loan inside, less anything you still owe. Effectively, you’ll get back what you’ve paid in so far.

 

Step 3: UNLOCK

After making monthly payments for a year, your loan is repaid and you leave LOQBOX with an improved credit score and your money back into a new account for free.

We know savers find it easier to keep their hands off their savings when they’re kept separate from their day-to-day funds. That’s why we recommend paying your LOQBOX savings into a dedicated savings account.

 

We get paid by our partner banks for opening a new account for you, which is how we keep LOQBOX free. But if you’d prefer, you can opt for our Flexi Unlock premium add-on and unlock into an existing account for £30.

How much will LOQBOX grow my credit score by?

There are too many influencing factors outside of LOQBOX for us to give you an exact figure.

We’ve been doing this long enough that we’re confident you’ll build your credit score. 

Also, it’s worth remembering that lenders don’t base their decisions on your credit score – they look at your credit history. As long as you make your LOQBOX payments each month, you should be more creditworthy in their eyes.

Is LOQBOX really free?

If you’re happy to pay your LOQBOX savings into a new account with one of our partner banks, then yes.

We know from our research that savers find it easier to keep their hands off their savings when they’re kept separate from their day-to-day funds. That’s why we recommend paying your LOQBOX savings into a dedicated savings account.

We get paid by our partner banks for opening a new account for you, which is how we keep LOQBOX free. But if you’d prefer, you can opt for our Flexi Unlock premium add-on and unlock into an existing account for £30.

Is my money safe with LOQBOX?

Your savings are held in an independently verified, ring-fenced account with Barclays, meaning it’s totally safe – even if Barclays and LOQBOX both went bust (don’t worry, they won’t).

How do I close my LOQBOX account (unlock)?

You can leave LOQBOX any time. Just log in to My LOQBOX, look for the ‘Unlock’ link at the bottom and follow the instructions from there.

If you haven’t made any payments yet, your LOQBOX will be closed down and there’s nothing more for you to do.

If you have made payments, you’ll be asked to open a new account to pay your LOQBOX savings into. Choose from a list of options and follow the link to set up your account, then return to My LOQBOX and enter the new sort code and account number. We’ll match these with the partner bank and transfer all your LOQBOX savings.

(If we can’t match the details you provide, your unlock will be considerably delayed.)

If you’d prefer not to open a new account, you can pay £30 to unlock your savings into an existing account using our Flexi Unlock premium add-on.

Why can’t I unlock my savings into an existing account for free?

When you unlock your savings into a new bank account, we get paid by our banking partners. This is how we can make LOQBOX free for you.

Once your LOQBOX funds are in your new account you can, of course, withdraw and spend them, although we hope you’ll carry on saving.

If you’d prefer to pay straight into an existing account, you can – with our Flexi Unlock add-on. Because using this method means we don’t get paid by our partner banks, we have to cover our costs another way, which is why Flexi Unlock is a premium service costing £30.

 

I’ve unlocked. Can I restart my LOQBOX?

Afraid not. Once you confirm you want to unlock (by clicking the second confirmation button) we instantly redeem your LOQBOX voucher and settle the loan with our sister finance company. This is the point of no return, and you’ll need to complete the unlock process.

But if you’d like to continue with LOQBOX, you can always sign up for another go.

Why have I had an email saying my Direct Debit has been cancelled?

This email is automatically triggered when you unlock your LOQBOX, whether that’s at the end of your 12-month term, or if you quit LOQBOX and unlock earlier.

You’ll also get this email if you’ve cancelled your own Direct Debit in order to set up a new one from a different account.

If you’ve cancelled your own Direct Debit thinking it’ll cancel your LOQBOX, it won’t. In order to quit LOQBOX and avoid missing your next payment, you’ll need to log in and unlock.

Is LOQBOX a loan?

No. LOQBOX itself is technically a ‘cash redeemable savings voucher’! But you use finance to buy the voucher. This finance element is the part that gets ‘locked’ in your digital piggy bank and is a loan provided by our sister finance company, DDC Financial Solutions Ltd.

It’s all very clever, behind-the-scenes stuff, but if you really want to know… the finance is transferred from DDC to LOQBOX on your behalf when you ‘buy’ your LOQBOX (voucher) using the DDC loan.

Which banks does LOQBOX partner with?

The banks we work with can change any time as new and better account options come on the market.

If you unlocked your LOQBOX savings today, you could choose to pay them into a range of free accounts from the likes of TSB, RBS, NatWest, Shepherds Friendly, Pockit and more.

Which credit reference agencies (CRAs) does LOQBOX report to?

We report our data to all three of the main CRAs: Experian, Equifax and TransUnion (formerly Callcredit).

 

I’ve unlocked. Why isn’t my last payment showing?

It usually takes three working days from when a payment is taken from your account to when it shows in your LOQBOX. If you unlock while your last payment is still processing, it will be returned separately to the account it was taken from.

Please allow up to four working days to receive this back as we have to wait for the payment to complete to us before we can return it.

What payment methods can I use with LOQBOX?

At the moment we accept Direct Debit, but we‘re rolling out debit card payments to our new customers. If you‘d like to be one of them, sign up below.

> Sign up with a debit card

When will my credit score go up?

Most LOQBOX customers see a real improvement to their credit report after about four payments, with steady growth as they make all 12 monthly payments. It takes a little patience, but the savings you’ll make on credit cards, loans and mortgages are worth it.

Remember, there are other factors beyond LOQBOX that will be impacting your credit history. Be sure to read our regular LOQBOX Learn emails to help you manage these.

Can I have more than one LOQBOX?

We wouldn’t recommend it.

Because your LOQBOX is financed, trying to take out more credit (in the form of another LOQBOX) is likely to harm your credit history and defeat the point.

Does it matter how much I choose to pay in each month?

Yes, but what matters most is that you don’t commit more than you can comfortably afford.

How much you decide to pay each month will make a difference to your credit history. Future lenders will look at how well you’ve managed credit as part of their assessment of your creditworthiness, and showing you can manage £20 a month is very different from showing you can manage £200 a month.

But remember, anything you pay will make a positive difference. The most important thing is that you don’t overstretch yourself, as a missed payment will damage your credit history. Be sure to choose a monthly amount you can easily manage – even in the event of a financial emergency.

Is there a LOQBOX app?

We’re working on it. We’ll let you know when it’s ready.

In the meantime, we’re making our mobile web experience work as well as it possibly can for you.

What do I do if my credit report contains errors?

If you think anything regarding your LOQBOX is wrong, please get in touch with us, please use the contact us form in My LOQBOX.

Why can’t I see LOQBOX on my credit report?

First, make sure you’re checking for DDC Financial Solutions Limited and not LOQBOX on your credit report. Your data is reported by our sister finance company, not LOQBOX.

Also, the reporting of your loan data to the three credit reference agencies (Experian, Equifax and TransUnion) is always a little delayed at the start.

We report all data for activity in a given month on the 18th of the following month. So, a payment taken in January would be reported on 18th February.

We have seen it take up to 90 days for the first record to be created on a credit report, although it often happens much faster.

When will my first LOQBOX payment be reported?

The reporting of your loan data to the three credit reference agencies (Experian, Equifax and TransUnion) is always a little delayed at the start.

When we report your first payment to each CRA, this establishes the loan record on your credit reports. It usually takes them about 20 days to validate the report and add the data to the relevant credit records for all of our users.

Once the record is on your report, it should be visible the next time your credit report refreshes. When you check your credit report, you’re often not looking at a ‘live’ version, but rather a snapshot collected once a month. The ‘report date’ will tell you when your report was last refreshed.

We report all data for activity in a given month on the 18th of the following month. So, a payment taken in January would be reported on 18th February.

The sooner you start, the sooner we can begin reporting your payments. And, with debit card payments now available, there’s never been a faster way to get up and running.

> Sign up with a debit card

I’ve unlocked. When do I get my money?

We only make LOQBOX payments on working days.

Once you’ve completed the unlock process online, your details are added to our payment sheet and processed the next working day. Payments can then take up to three days to arrive in your account.

What if I can’t make this months payment?

If you miss a payment you will be able to pay it at any point during the remaining months of your LOQBOX, however, if we don’t receive the payment before the 15th of the month following the month the payment was due it will be reported as missed. The only way to avoid the missed payment being reported if you can’t pay before this date is to unlock your LOQBOX.

I’ve missed a payment. What do I do?

If you pay in by Direct Debit, we’ll automatically attempt to collect a  payment twice (with a few days’ gap in between). Once both attempts have failed, you can log in to My LOQBOX and click the ‘Make arrears payment’ button to authorise us to collect your missed payment. Once you’ve done this, the status on your missed payment will change to ‘Awaiting arrears payment’.

If you pay in by debit card, we’ll only attempt to collect a payment once. If you miss a payment, you’ll just need to log in to My LOQBOX and prompt us to take the payment again by clicking ‘Retry payment now’.

Can I pay in weekly or every four weeks, rather than monthly?

Nope. We have to take your payment on the same day of each month. This date can be anything from 1st to 28th, and is set when you sign up for LOQBOX.

When is my paying in date?

You can find your payment date any time in My LOQBOX. Just log in and look for ‘Payment history’.

Please note: at present this date can’t be changed.

Why has a payment been taken after I unlocked my LOQBOX?

This very occasionally happens when you unlock your LOQBOX very close to your payment due date because we have to instruct your bank to collect Direct Debit payments three days in advance.

Don’t worry though. Your bank will pass the payment to us within three working days, then we can transfer the funds back to you.

How do I change the account I use for paying into my LOQBOX?

To change the account your Direct Debit is taken from, you’ll first need to cancel your existing Direct Debit mandate at your bank. Within two working days, this will trigger an email from us, asking you to restart a new mandate. Just click the link in that email and follow the instructions to add your new bank details.

It can take up to 14 days for the mandate to be processed by your bank. During that time we won’t be able to collect any payments, so it’s a good idea to do all this just after a payment has been collected. That way, you’ll avoid missing a payment while the new Direct Debit is being activated.

Can I pay extra into my LOQBOX?

Sorry, no. LOQBOX is a digital savings voucher and doesn’t work that way. Because we’re not a bank, we can’t allow transactions in or out of your account beyond the original value of your LOQBOX.

Can I change how much I pay in each month?

Once you’ve set up a LOQBOX, you can’t change the amount you pay. So make sure it’s an amount you can afford every month, and we’d suggest you pick a day when you’re most likely to have the money in your account – like just after payday.

Can I change or delay my monthly paying in date?

No. The collection of payments by Direct Debit is automated, so we can’t request that the payments are taken on any other day than the one you chose when you signed up.

The only way to stop a payment is to quit LOQBOX and unlock.

The only workaround to changing your paying in date would be to quit and unlock your existing LOQBOX (this would mean opening a new account to pay your savings into, unless you’re yet to make your first payment), then setting up a new LOQBOX with the different payment date.

Can I change my monthly payment date?

Unfortunately, it isn’t possible to change the payment date once the direct debit mandate has been set up.
We’re working on a solution at the moment that would allow you to change the payment date but at present, the direct debit system doesn’t allow it.

The only way to do this would be to do a full unlock, using the normal unlock process and then rebuy a new LOQBOX and select a different payment date. Please note you will need to open a new bank account with one of our partner banks to redeem your savings for free, as you would at the end of your 12-month LOQBOX. If you have not yet made your first payment, you will not need to open a new account.

Can I change my first paying in date?

Sorry. Once you’ve set up a LOQBOX, the Direct Debit system doesn’t allow any changes to your payment dates.

The only workaround would be to quit and unlock your existing LOQBOX (because you’re yet to make your first payment, you wouldn’t need to open a free account), then setting up a new LOQBOX with the different first payment date.

Ready to get started with LOQBOX?

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