is loqbox legit or scam? Loqbox reviews & complains 2023

Introduction

Loqbox is an innovative credit building platform that allows users to establish and improve their credit history without paying interest or facing strict credit requirements. This LOQBOX review will provide a comprehensive overview of how the service works, the pros and cons to consider, and whether it makes for a good credit building option.

Credit history and credit scores play a massive role in our financial lives and ability to access loans, credit cards, housing, and more favorable rates. While traditional credit products often have stringent eligibility criteria like an existing credit history, Loqbox aims to help more individuals establish a positive payment record from scratch.

Let’s take a closer look at the Loqbox process, experience of real users, alternatives to consider, and key things to know before deciding if Loqbox is right for your credit goals.

How Loqbox Works

Setting up a Loqbox account is simple and can be completed fully online within minutes. Here are the basic steps:

1. Savings Target – Users select a monthly savings amount between $20-200 that will be the basis of their virtual “loan.” Saving $100/month for 12 months results in a $1,200 target.

2. Auto-Payments – An automatic payment method like bank account debit or debit card is used to make smooth, on-time payments each month towards the savings goal.

3. Credit Reporting – Loqbox reports payments to Equifax, Experian and TransUnion so each installment builds credit history and increases payment on-time percentages over time.

4. Redemption – Upon completing payments (or early if desired), the accumulated savings are released to the user. A $40 fee applies if not transferring to a partner bank account.

Loqbox balances work much like a loan, with payments improving credit metrics, but there is no interest charged. The building block is saving consistently each period, not taking on debt. Users essentially “buy” the ability to build credit this way and access their savings later.

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Features and Benefits

Beyond the basic credit-building framework, Loqbox offers some notable features and upsides compared to other available options:

• No Credit Check – Loqbox approval does not depend on preexisting credit history or scores. This expands eligibility.

• Flexible Payments – Amounts can be set from $20-200 each month instead of fixed installments. Customizable.

• Early Redemption – Savings can be withdrawn ahead of schedule without penalties if needs arise.

• Multiple Accounts – Users are allowed to open more than one Loqbox simultaneously if wanting to boost credit through several trade lines.

• Added Savings – In addition to the credit perks, successful payments result in building personal savings over 12 months that can be accessed later.

• Partner Banks – Released funds can be transferred fee-free into a new associated savings account at one of Loqbox’s partner banks for added perks like higher interest rates than regular accounts.

Overall, Loqbox seems ideal for goal-oriented individuals aiming to demonstrate responsible financial habits to lenders through sustained installments, whether starting credit from zero or improving current profiles. The path is straightforward and low-pressure compared to traditional secured cards or loans.

Customer Reviews and Experiences

Since launching in the United Kingdom in 2017 and United States in late 2020, Loqbox has accumulated hundreds of reviews from real users on sites like Trustpilot. Though no platform is perfect, overall receptiveness appears positive:

• Ease of Use – Many appreciate the simple setup and management through the app or website. Payments are auto-drawn without hassle.

• Credit Gains – Customers report common increases of 30-50+ points across bureaus over 6-12 months of on-time payments, more for those starting with limited credit.

• Access to Funds – When unlocking savings, the bulk of reviews confirm quick transfers whether to partner bank accounts or personal accounts subject to the one-time $40 fee.

• Customer Support – While support is lacking for some complex issues, several note prompt responses to basic questions through email or the in-app messaging center.

Of course, some negative reviews also exist. A few cite technical errors disrupting payments or slow responses when facing account issues. Bad experiences may simply be more vocalized than satisfied customers overall, however. In general, real user comments track with the product benefits and identify it as a hassle-free resource.

Pros and Cons to Consider

As with any financial tool, it’s important to weigh both the pros and cons of Loqbox:

Potential Pros:

• Reported credit score improvements for successful users
• Flexible payment amounts from $20-200 per month
• No credit check or strict eligibility
• Multiple accounts allowed for greater credit mixing
• Funds fully accessible when unlocked

Potential Cons:

• Credit dip possible after opening from initial hard pull
• No interest earned on accumulating savings balance
• $40 fee to withdraw outside partner bank accounts
• Limited utilization history may still leave thin files
• Service only available in 43 U.S. states currently

Weighing these specifics will help determine if Loqbox fits into individual credit rebuilding plans or not. Communication with their support team can also alleviate concerns in some cases. Overall, it seems to successfully serve justified purposes for many users.

Alternatives to Consider

While Loqbox presents as a competitive option, it’s still worthwhile exploring viable alternatives depending on credit profile and goals:

• Self – A similar installment-based credit builder. Reported across all bureaus but does charge monthly/early payoff fees.

• Credit Builder Loans – Offered through some banks and credit unions for members, sometimes with lower monthly payments.

• Secured Credit Cards – Require security deposit but easily accessible with starter limits. Report monthly statements.

• Authorized User Accounts – Ask family/friends to add your name for credit history growth from responsible accounts.

• Rent/Utility Reporting – Services that communicate rent/bill payments made directly to the bureaus.

• Credit Karma Savings – New high-yield savings account allowing small daily spending to build credit over time.

Comparing features and costs upfront helps identify the most practical fit. Combining strategies improves credit standing results further through diversified tradelines.

Frequently Asked Questions

• Can I cancel Loqbox early and keep my savings? Yes, early redemption is permitted without penalty fees applied.

• How quickly does Loqbox get reported to the bureaus? Payments post to all three credit bureaus on a monthly basis.

• What’s the approval process like? No credit check or denial risk involved—simply pick a monthly savings amount after verifying identity.

• Is my money secure with Loqbox? Yes, funds are held in FDIC-insured custodial accounts separate from Loqbox’s operations.

• Do I need good credit to join? No minimum credit score requirements exist – Loqbox is meant to help those new to credit or working on repairing their reports.

• Are there any late fees? Late or missed payments will incur lates fees set at $15 by Loqbox and negatively impact credit scores.

• Can I explain late payments on my reports? While late payments hurt, users can contact credit bureaus to add clarifying statements after catching up if desired.

With transparent, responsible practices Loqbox appears effective at gradually documenting responsible financial behaviors for credit file development and score boosting over consistent on-time installments. Understanding nuances upfront lays the best path for success.

In Summary

For individuals seeking accessible, easy means of starting to build credit securely from non-existent or poor starting points—particularly without risking the debt that traditional credit vehicles entail—Loqbox presents as a sound option deserving consideration.

Its competitive approval terms, customizable payment structures conducive to nearly any budget, and clear transparency into credit improvement metrics position it favorably versus similar alternatives in many cases too.

While no one solution fits every situation, customers initiating Loqbox accounts report enjoyable experiences improving credit profiles worth over 30 points on average within a year. Combining it with other positive tradelines seems ideal for accelerated strengthening too.

With careful attention paid to on-time payments, prospective Loqbox users stand much to gain through their convenient, proven credit development paths. Taking advantage requires only a small time commitment upfront promising greater long-term financial rewards and options down the road.