In today’s financial landscape, having a good credit score is crucial for securing loans, credit cards, and even apartments. A good credit score can open doors to better financial opportunities, while a poor credit score can limit your options and lead to higher interest rates. One way to improve your credit score is by using a credit builder tool like LOQBOX.
In this article, we will have a discussion on LOQBOX, exploring how it works, its benefits, and what you can expect from this innovative credit-building solution.
The Story Behind LOQBOX
LOQBOX was founded by Tom Eyre and Gregor Mowat, two individuals who were frustrated with the lack of support and guidance available to consumers in the credit industry. Tom Eyre, in particular, had a personal experience with poor credit, which led him to create a paid-for service called Credit Improver in 2012.
However, he soon realized that many people could not afford the fees associated with his service. This led him to co-found LOQBOX with Gregor Mowat, with the goal of creating a completely free solution for those looking to improve their credit score.
How LOQBOX Works?
LOQBOX is a tool designed to help you build your credit score by reporting your monthly savings to three major credit reference agencies: TransUnion, Experian, and Equifax. The process is simple: you sign up for LOQBOX, set up a monthly savings plan, and make regular payments.
As you pay back the loan, LOQBOX reports your payments to the credit agencies, demonstrating your ability to manage credit and improve your credit worthiness.
The Benefits of LOQBOX
So, why should you consider using LOQBOX? For starters, it is completely free, with no hidden fees or charges. By reporting your monthly savings to the credit agencies, LOQBOX helps you build a positive credit history, which can lead to better loan options and lower interest rates in the future.
Also, LOQBOX offers a flexible payment plan, allowing you to set your own monthly savings goals and adjust them as needed.
How LOQBOX Reports Your Payments?
When you make a payment through LOQBOX, the platform reports your payment to the three major credit reference agencies: TransUnion, Experian, and Equifax. This shows that you can manage credit responsibly, which is a key factor in determining your credit score. The payments are reported as a loan, which is then reflected on your credit report.
This demonstrates your ability to handle credit and can help improve your credit score over time.
What to Expect from LOQBOX?
When you sign up for LOQBOX, you can expect a simple and straightforward process. You will need to provide some basic information, including your name, address, and contact details.
You will then set up a monthly savings plan, which can be adjusted as needed. As you make payments, LOQBOX will report your payments to the credit agencies, and you will be able to track your progress through the platform’s dashboard.
Conclusion
In conclusion, LOQBOX is a powerful tool for building your credit score, offering a free and flexible solution for those looking to improve their credit worthiness.
By reporting your monthly savings to the credit agencies, LOQBOX helps you build a positive credit history, which can lead to better loan options and lower interest rates in the future.
Some Questions
What is Loqbox credit builder?
Loqbox credit builder is a credit-building product that helps you build your credit history while saving your money. It is a UK-based app that combines a loan with a savings account to help you improve your credit score.
How does Loqbox credit builder work?
Loqbox credit builder works by allowing you to save a chosen amount each month for 12 months. Your direct debit payments are used to pay off a loan, which is then added to your credit history, helping to build your credit score.
Can I use Loqbox credit builder if I have no credit history?
Yes, Loqbox credit builder is designed for people who have no credit history or a thin file. It is a great way to start building your credit history from scratch.
Are there any interest rates or fees associated with Loqbox credit builder?
Loqbox credit products are provided with 0% APR (interest-free), and there are no fees associated with using the service.
Can I use Loqbox credit builder with a joint account?
Yes, Loqbox credit builder allows you to add yourself to a joint account, but be aware that poor credit behavior by one account holder may affect the credit score of the other account holders.
