Vanquis signs credit building partnership with Loqbox
Vanquis Bank has signed a partnership with credit builder Loqbox, for greater provision of credit to potential customers.
Vanquis sees the deal enabling it to refer to Loqbox applicants unable to receive credit from it. This, it argues, gives them “the best chance to build a credit score”.
Loqbox claims to have already helped “hundreds of thousands” to “master their money” and build out their credit scores.
The firm, founded in 2017, allows customers to decide an amount they can save in a year. A 0% rate is then offered matching their monthly savings (to a maximum of £200).
Once the “loan” is paid over the 12 months, a user’s credit score has been improved. The funds are then released back into a bank account.
Should a customer reach a point where a traditional credit card could be offered, Vanquis steps in to facilitate it.
“Consumers can be left disappointed and without choices if they have not been immediately successful in their application for a credit card,” says Vanquis customer director, Tom Allder.
“Due to the current economic climate, people are finding it increasingly difficult to get credit.
“This unique partnership has launched at the perfect time to help people to live a healthy financial life.”
Tom Eyre, Loqbox co-founder and CEO, says his firm is seeing a “huge” increase in companies wanting to partner. He says this is due to the data Loqbox is able to provide.
Eyre adds: “Vanquis is a great example of how two UK financial institutions can collaborate to produce solutions that help people to take control.”