Will unlocking my LOQBOX Save early have a negative impact on my credit score?
The process of unlocking your LOQBOX Save early will not directly affect your credit score.
When your LOQBOX Save loan first appears on your credit report it's normal to see a bit of a dip in your credit score. This happens because the credit reference agencies (CRAs) don't yet know if you will make your monthly payments. As we collect your monthly payments, we report them to the CRAs. This positively impacts your payment history and your credit score.
Unlocking early stops this process and so the initial drop may not be recovered by unlocking before making all of your repayments. Because of this, we recommend that you don't unlock early, however, we understand that sometimes this is unavoidable.