Is Loqbox Save a loan?

Erika
Erika
  • Updated

Let's chat about how Loqbox Save works – it's a bit different from a traditional loan. 

 

With Loqbox, you'll receive that lump sum payment back at the end of your monthly payments, not at the beginning. Just to clear things up, if you're on the hunt for an upfront cash loan, Loqbox Save might not be the match for you. Our focus is on helping you grow your savings over a year and giving your credit score a boost as you go.

 

Loqbox Save is technically a 'cash redeemable savings voucher' (a bit of a mouthful, we know!). Here's the twist – a ‘loan’ steps in to finance this voucher, courtesy of our sister finance company, Loqbox Finance. The finance for your voucher is what's 'locked' in your digital piggy bank, making it possible for us to report your progress to Experian, Equifax, and TransUnion — and ultimately boosting your credit score.

 

Once you've made all 12 payments, we'll give you the heads-up that your savings are ready to ‘unlock’. You'll then have the freedom to log in and make your choice from three options:

 

1. The Free Option

Unlock your savings into a new bank account with one of our trusted partners. They show their appreciation by paying us a commission, which keeps Loqbox Save completely free for you.

✔ You get a new UK bank account

✔ The new account setup takes as little as five minutes and has no impact on your existing bank account

✔ You pay nothing to unlock, so Loqbox Save is free for you to use

 

2. The Premium Option

Unlock your savings into your existing account. A £30 fee covers the cost of your credit-building journey.

 

✔ You withdraw your savings into your existing bank account

✔ There is no new bank account setup



3. Full Member Option

There’s another option to unlock your savings into an existing bank account. As a Full member, you get a free Flexi Unlock after you've made 26 weekly membership payments, or available immediately if you pay for your membership annually.

 

Whichever route you choose, you'll typically find your funds in your hands after just one working day from the time you redeem your savings. 

 

We're here to make your financial journey smoother, simpler, and more rewarding. Ready to dive in? Let's do this!