Pockit vs Loqbox: which is the best credit builder?

Improving your credit score is a crucial step towards better financial health, but it can seem like a minefield if you’re starting with poor or no credit history. 

If you’ve been looking at Pockit vs Loqbox reviews you’ll know they both offer solutions to build your score, but go about it in very different ways. 

In this article, we’ll take a deep dive into two of the best credit builder options on the market so you can make up your own mind about which will work best for you.

Pockit vs Loqbox: Credit builders at a glance

The main difference between Loqbox and Pockit is that Loqbox offers solely a credit building function while Pockit credit builder works through the prepaid card model. This means with Pockit, in addition to building your credit, you get a card you can use to make payments and a ton of other benefits.

Pockit vs Loqbox: how they work 

Loqbox uses the savings model of credit building. That means you pay money in each month, and Loqbox reports these payments to the three main credit reference agencies (CRAs) in the UK. 

Loqbox offers two plans: Loqbox Save is £20 per month. A loan is taken out in your name (that you can never access) and you pay this back over 12 months. At the end of the period, you can claim the money you have paid in back, but this comes with a £30 fee unless you want to set up an account with one of Loqbox’s partner banks.

With Loqbox Grow, you pay £2.50 per week to build your credit history. 

Pockit takes a different approach where the ‘Fast Track to Credit’ solution is integrated into the prepaid card model. 

Prepaid cards are like debit cards but you load money onto them (via cash, salary, or transfer) before using them like a regular card. They aren’t linked to a traditional bank account but do offer similar functionality such as making payments in-store and online, transferring money, and managing finances.

With Pockit’s Fast Track to Credit, you make a payment of £9.99 from your prepaid account or as part of your prepaid card payments and this is reported to three main CRAs. In addition to having another card to use, you also get access to personal credit like loans or salary advances in as little as 3 months, along with a host of other benefits associated with Pockit’s prepaid card plans.

Pockit also doesn’t report any missed payments to the credit reference agencies, so if you can’t make your monthly fee, your account simply gets downgraded to a basic prepaid card.

Pockit vs Loqbox: Ease of setup

To set up Loqbox you need to decide how much you want to put away each month, and Loqbox will turn this amount into a 12-month savings plan. Setup is straightforward and users can set up a plan in less than 5 minutes.

Pockit is also straightforward and you can set up your card entirely online. You’ll have to provide some details like ID and proof of address, but it’s a much simpler process than setting up an account with a high street bank.

Setting up Pockit online can be done in as little as 3 minutes making it one of the easiest ways to start building credit immediately.

Neither the Pockit credit builder nor Loqbox credit builder require hard credit checks to open, and you can opt out of both at any time.

How quickly do Pockit & Loqbox improve your credit score?

Loqbox can help you start improving your credit score within 6 to 9 months. Meanwhile, you can get approved for a loan after building your credit score for 3 months with Pockit. 

However, though this information is sometimes missed when you read a Loqbox credit builder review, it’s important to note that missing the payments you agree to with Loqbox credit builder can actually harm your credit score. 

Pockit vs Loqbox: Financial help 

Pockit offers a wide range of financial tools and educational resources to help you manage your money better. These included built-in budgeting tools in the mobile app where you manage your money, as well as helpful financial tips. Meanwhile, Loqbox offers personalised financial advice and educational content to help you understand how credit works and improve your financial habits.

Pockit vs Loqbox: Fee structure

Pockit’s credit builder involves a flat monthly fee of £9.99 to get started with improving your credit score. There are also other small fees for things like money transfers etc. when using the prepaid card that’s part of your credit builder account.

Loqbox offers two plans: Loqbox Save is £20 per month while Loqbox Grow is £2.50 per week. There is also a flat fee of £30 to claim your money back at the end of the 12 months if you don’t wish to open an account with one of Loqbox’s partner banks.

Pockit vs Loqbox: support features

Pockit offers responsive customer support through email, chat, and a dedicated help centre on the website. You’ll also find a detailed FAQ section offering helpful answers to common questions. 

Loqbox offers support through email, an online chat service, and a help section on its website. 

Security and transparency of Pockit and Loqbox: 

Both Loqbox and Pockit are highly secure solutions. For instance, Pockit follows safeguarding. This means that your money is stored separately from any other funds and you are protected in case anything happens to Pockit. Learn more here.  

Pockit vs Loqbox: rewards and benefits

The main reward provided by Loqbox is built-in to the savings model of credit building as you can unlock the money you’ve paid in at the end of the term. There are also other rewards and benefits associated with Loqbox’s premium plans. 

As one of the best credit builder cards, Pockit offers more instant rewards as you can get helpful features like cashback when making purchases with the prepaid Mastercard® you get as part of your plan, as well as access to credit facilities like loans and salary advances.

For instance, you can borrow up to £500 after 3 months at 0% interest, then repay it easily in 3 monthly instalments with a small flat fee

Choosing the right credit builder for you

We hope this article has made the Pockit vs Loqbox decision easier. Both Pockit and Loqbox offer unique approaches to improving your credit and bettering your financial position. The option that’s right for you will depend on your individual circumstances and financial needs.

If you don’t mind locking your cash away for 12 months, Loqbox is a great option. But if you’re looking for access to credit and additional benefits like cashback and savings on utilities, then Pockit is the better option.  Start building your credit score in as little as 3 minutes. 

FAQs

How should you choose a credit builder?

To choose the right credit builder for you, think about your financial objectives and assess the features offered by each service. Most people will need to find a solution that’s easy to set up and easy to pay into with a simple fee structure. You should always look for a service that reports your payments to all three of the main credit reference agencies to build credit most efficiently.

How do Pockit and Loqbox handle missed payments?

Both Pockit credit builder and Loqbox credit builder encourage responsible management of your finances. However, if you miss a payment with Loqbox it could harm your credit score. With Pockit Credit Builder your missed payments won't be reported meaning the worst that can happen is your card is downgraded to a basic one.

What do you need to apply for a credit builder?

To apply for a credit builder with either Pockit or Loqbox you’ll need to provide information like your name, proof of address, and identification. With Pockit, you can apply with just proof of address and one of over a dozen forms of ID.