Loqbox is a UK-based credit-building tool that takes a unique approach: you save money while building credit simultaneously. Unlike traditional credit-builder products that focus only on credit scores, Loqbox lets you reach two goals at once. Here's everything you need to know about whether it's right for you.
How Loqbox Works
Loqbox operates on a simple three-step cycle. You set up a savings goal and deposit money into a Loqbox account. The app holds your money in a savings vehicle while reporting your on-time deposits to credit agencies as if you're paying back a loan.
After 12 months of on-time deposits, you get your money back in full, plus interest. The key benefit: you've built six months to a year of positive payment history on your credit report during this time. It's like getting paid to improve your credit score.
Pricing and Costs
Loqbox's pricing structure is straightforward. You choose your monthly deposit amount (£20 to £200), and after 12 months, you receive your full savings back. Loqbox charges a membership fee of £2.99 per week (approximately £13 per month) on top of your chosen monthly savings amount.
The only real cost is the opportunity cost of your money being locked away for a year, plus the membership fee. However, many users view this as a feature, not a bug—it forces disciplined saving while you build credit. You'll earn some interest on your deposits, though rates are modest.
Pros and Cons
Loqbox's biggest strength is its dual benefit: you're not just building credit, you're also building savings discipline. Unlike credit-builder loans where you pay interest and get nothing back, you recoup your full investment plus interest. It's ideal for people who struggle with saving but want to improve their credit.
The main drawback is that Loqbox is only available in the UK. US residents cannot use it. Additionally, the credit-building effects take time—you need a full 12 months to see real results. It also requires consistent monthly deposits; missing a payment can derail your progress.
Alternatives for US Residents
If you're in the US, several alternatives offer similar credit-building benefits. Credit-builder loans from companies like Self or LendingClub work similarly but are available nationwide. Secured credit cards like Capital One or Discover require a deposit but give you an actual credit card to use.
Self reports to all three credit bureaus monthly, while some credit-builder loans only report to major bureaus quarterly. Compare timeline, fees, and reporting frequency before choosing your credit-building method. Learn more about best credit builder loans or compare credit builder loan vs secured credit card options.
Loqbox is an excellent option for UK residents who want to save money and build credit together. For those in the US, explore alternative credit-building tools that offer similar benefits. Whether you choose Loqbox or another method, the key is consistency. Discover how long it takes to build credit and get started on your credit-building journey today.
Frequently Asked Questions
How does Loqbox work?
Loqbox provides a credit-building loan that is locked in a savings account. You repay it through monthly installments over 12 months, and those payments are reported to credit agencies to build your credit history.
How much does Loqbox cost?
Loqbox charges a membership fee of £2.99 per week (approximately £13 per month) on top of your chosen monthly savings amount, which ranges from £20 to £200.
Is Loqbox available in the United States?
No. Loqbox currently operates only in the United Kingdom. US-based consumers can explore alternatives like Self Credit Builder Accounts or secured credit cards.
Do you get your money back from Loqbox?
Yes. After completing the 12-month term, you receive your accumulated savings back. The membership fees are not refundable.
