Frequently Asked Questions | US

Our top FAQs

How Loqbox works

Making payments

Your credit score

Missing a payment

Leaving Loqbox (unlocking)

Why can’t I join Loqbox?

Unfortunately, Loqbox is currently unavailable in this state. If you're an existing Loqbox member you'll still have access to your account and will be able to fully complete your journey with us.

I am coming to the end of my Loqbox, can I start a new one?

Loqbox is no longer available in your state so you won’t be able to set up a new Loqbox once you have completed your current Loqbox.

How do I refer a friend?

We’re sorry, this service is no longer available in your state.

How does Loqbox work?

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.

How much does it cost?

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

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 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.

Is my money safe with Loqbox?

Your savings are held for your benefit in an account with BMO Harris Bank and are FDIC insured.

Is Loqbox a loan?

Loqbox Save is a feature which incorporates a secured consumer loan from Loqbox Finance, LLC backed by a digital savings voucher purchased from Loqbox Savings, LLC.

Which banks and financial service institutions does Loqbox partner with?

The banks and financial service institutions we work with can change any time as new and exciting 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 Stash, Axos Bank, Nationwide Bank and CIT Bank.

How do we take payments?

Your payments will be processed electronically in a bank-to-bank (ACH) transfer by our trusted partner, Dwolla.

What happens if I want to change my payment method?

You can change your funding source at any point within My Loqbox. Head to your ‘Profile’ section and then click ‘Payment details’ to edit this.

When do you report to the credit bureaus?

We report your progress to Equifax, Experian and TransUnion at the start of each month, this report will include your activity from the previous month.

What time do you take payment on my chosen payment date?

We aim to process all payments at 4pm Central Time on your chosen payment date. If your payment date falls on a weekend then it’ll be processed on the next working day.

Can I change my first payment 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 my regular monthly payment date?

You can move any payment (except your first one) a month in advance 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, head to your ‘Profile’ section and then click ‘Payment details’ to update.

When is my payment date?

You can find your payment date any time in My Loqbox under your ‘Products’ section.

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

Unfortunately not. 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 my funding source for paying into my Loqbox?

Just log in to My Loqbox, find the ‘Profile’ section and click ‘Update my payment details’. Then just follow the onscreen instructions to set up your new funding source.

What does Loqbox Finance LLC have to do with it?

It is our sister finance company and the institution that will provide your 0% APR loan.

How do I pay a missed or overdue payment?

If your payment fails we won’t be able to attempt it again. You’ll need to log in to My Loqbox to retry the payment. Make your way to your ‘Timeline’, click on the missed payment and follow the instructions from there.

What payment methods can I use with Loqbox?

At the moment we can only accept ACH payments.

Could using Loqbox harm my credit score?

Loqbox 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. This is totally normal and happens whenever you take out a new line of credit. But, if you quit early on, you could leave Loqbox with a lower credit score than you started with.

If you miss a Loqbox payment, we have to report it to the credit bureaus, which could harm your credit score. But you can always unlock to avoid missing a payment, so this should never happen.

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

Afraid not. Things like setting up payments with your bank take time, as does reporting to the credit bureaus, which is why it takes a few months to see changes.

The sooner you start, the sooner we can begin reporting your payments.

Which credit bureaus does Loqbox report to?

We currently report our data to Equifax, Experian and TransUnion.

When will my credit score go up?

Most Loqbox users see a real improvement to their credit score 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.

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

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

What if I struggle to keep up the monthly payments?

You should think about unlocking your Loqbox right away. You’d miss out on building 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.

Can I crack open my savings at 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.

How do I close my Loqbox (unlock)?

You can leave Loqbox any time. Just log in to My Loqbox, go to your ‘Product’ section and follow the instructions from there to unlock your Loqbox.

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 routing number 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 $40 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?

If you’d prefer to pay straight into an existing account, you can use our Flexi Unlock premium service to do this for $40. When you use Flexi Unlock, we don’t get paid by our partner banks for introducing you so we have to cover our costs another way. This is why we have to charge for Flexi Unlock.

I've unlocked. Can I restart my Loqbox?

Afraid not. Once you confirm you want to unlock 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.

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

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

Loqbox FAQs

Got any questions about your Loqbox or thinking of signing up? We’ve captured our frequently asked questions below to make your life a little easier.