Loqbox grows your credit score by helping you prove your creditworthiness to the credit bureaus – 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 cellphones.
Here’s how we do it…
Step 1: Save
Decide how much you can save into your Loqbox each month for a year. We finance the full amount with a 0% APR loan (issued by our finance partner Loqbox Finance LLC). Think of it like a digital piggy bank.
Let’s say you wanted to save $1,200 in a year. We sell you a Loqbox in that amount and issue you a 0% APR loan to pay for it, which you repay in 12 interest-free monthly payments of $100.
Step 2: Build
We report your monthly loan repayments to Equifax, Experian and TransUnion, 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 ‘unlock’ your Loqbox at any time, receiving its face value less any amount 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 introducing them to new users, 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 $40.