Will unlocking Loqbox Save early have a negative effect?

  • Updated

Unlocking your Loqbox Save account ahead of schedule won't have a direct negative impact on your credit score. However there are some things to keep in mind.

When your loan account is first added to your credit report, it's not unusual to observe a slight dip in your credit score. This happens because credit reference agencies are still in the process of assessing your consistent payment behaviour. As you continue making your monthly payments, we regularly report these payments to the credit reference agencies. And reporting this positive financial behaviour has a significant contribution to building your credit history — and ultimately your credit score.

Unlocking your Loqbox Save account early would interrupt this process. Consequently, the initial credit score dip might not be fully recovered if you unlock your account prior to completing all your payments. For this reason, we generally recommend against early unlocking. But we do understand that certain circumstances might require early unlocking, and we're here to support you whatever your decision.

If you have any further questions or need additional guidance, please don't hesitate to reach out. Your credit journey is important to us, and we're here to help you make informed decisions.