Loqbox launches credit booster for renters

Credit building fintech Loqbox has launched a new feature aimed at helping renters get on the property ladder.

Loqbox, set up in 2017, works by offering a kind of 12-month savings-loan to those with poor credit ratings. 

The loan itself is always held by Loqbox, helping to keep the interest low, while customers repay the amount each month, which is reported to the three main credit rating agencies—Experian,Equifax and TransUnion—helping to build their credit rating.

It has now launched a new feature, Loqbox Rent, which will allow users to use Moneyhub’s open banking technology to track and report rent payments to Experian.

The idea is to build renters’ creditworthiness, making them more eligible for a mortgage in the future.

Open banking technology allows the fintech to accurately identify regular rent payments and report them to Experian, Loqbox says.

Loqbox co-founder and co-chief executive officer Tom Eyre said: "Our latest feature is the first of many new developments to the Loqbox membership suite.

"We are committed to giving our members access to a richer life. There will be a range of brand new features being launched in what will be a very exciting year for Loqbox members”.

Since its launch, Loqbox says it has “helped nearly 1 million people in the UK and the US”, where it launched in 2020.

Jonathan Westley, chief data officer at Experian UK and Ireland, said: “By using cutting-edge open banking technology, we are making it easier for more people to seamlessly add rental payment information to their credit report, helping them strengthen their credit history and improving their chances of accessing fair, and affordable credit."

Credit building initiatives are becoming increasingly popular with fintechs, with Monese,Tide and Cashplus introducing features in this area.