Amigo loans guarantor criteria

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Since the start of the economic crisis, millions of people have been left out in the cold by their bank. If you need a loan and have no credit history, or a bad credit score, you may feel like your only option is to apply for a payday loan, which can mean an APR as high as 4, per cent. There are options out there with less jaw-dropping interest rates that are willing to lend to people that the banks won't. Until recently, one of these options, Guarantor Loans, was relatively unknown, but in recent times they've started to become seen as an increasingly viable alternative to the under-fire payday industry, partly due to the work of guarantor lender, Amigo Loans. Benamor's Amigo Loans is shaking up the industry by returning to a more traditional, trust based form of lending, where affordability is the main focus and borrowers are asked to provide a guarantor to back their application. Back then your local bank manager would know you and lend to you based on your assets or your income.

Amigo loans guarantor criteria

Amigo Loans is the largest guarantor loan lender in the UK. The Bournemouth-based company has approved over , loans since they were founded in The representative APR is If successful, funds can be transferred within 24 hours but usually takes around 48 hours. Amigo recommend having a guarantor with very good credit history or one which is preferably a homeowner because if you cannot repay your loan , there is a good chance that someone with good credit will be able to. This is why Amigo Loans are popular for those individuals with bad credit especially if they have been unable to access funds from other commercial lenders. Amigo mentions that customers with bad credit are able to rebuild their credit rating if they pay on time because the information is passed onto a credit reference agency. Borrowers with a bad credit history can still be eligible for a loan with Amigo, even if they have a County Court Judgement. However, the guarantor must be aged between 18 and 75 and a very good credit history, preferably a UK homeowner. The idea is that homeowners usually have a strong credit rating in order to get a mortgage and they are less likely to leave town if they have a property. For more information, read about who could be my guarantor. The idea of having a strong guarantor is based largely on trust. Amigo believe that if someone with good credit history trusts you, then Amigo can trust you too. How much you can borrow with Amigo Loans depends on a number of factors.

Join our commenting forum Join thought-provoking conversations, amigo loans guarantor criteria, follow other Independent readers and see their replies Comments. He's a specialist in personal finance, from day-to-day banking to investing to borrowing, and is passionate about helping UK consumers make informed decisions about their money. However, missed payments are also recorded, so your credit score can be negatively impacted, too.

We have access to 10 other guarantor lenders that may be able to offer you a loan with better terms, including lower rates or higher borrowing amounts. Each and every lender will have their own list of criteria. Forces Compare can look through your details and help you find personal loans, or even secured loans, at fantastic rates. Amigo offers guarantor loans. With this type of loan, a guarantor is elected and promises to repay the loan if the borrower defaults.

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Amigo loans guarantor criteria

The loans come with a representative APR of People borrowing money from Amigo Loans will need a guarantor who will have to pay the loan back if the borrower defaults. This involves checking their credit history and their track record of repaying debts. Although guarantors need to be homeowners, the loan is not secured on the property. Amigo suggests asking a friend or family member to be a guarantor. Being a guarantor for a loan means you are responsible for the loan and can be chased for the debt if it goes unpaid. Here's what James Benamor, the CEO of Amigo Loans, has to say: "Over 65, people have acted as guarantors for their friends and family with Amigo and customers tell us it's a positive and rewarding experience. Guarantors have been able to help their loved ones regain financial control, whether it's been to start their own business, buy a car for work or consolidate expensive payday loans. Ultimately this means the borrower will have a wider choice of financial products in the future.

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The longer you have the loan open for with Amigo, the more you can borrow. When you applied for a loan, Amigo set up a monthly direct debit. You must have a friend or family member who agrees to be your guarantor. I would like to be emailed about offers, events and updates from The Independent. View offers. The flexibility of guarantor loans with some guarantor lenders, like Amigo Loans , means that you can pay your loan off early, without a charge, making it possible to use it in the same way as a payday loan, at around th of the APR. Amigo offers guarantor loans. The representative APR is Amex has launched a deal similar to buy now, pay later. A-Z list. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.

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If you need a loan and have no credit history, or a bad credit score, you may feel like your only option is to apply for a payday loan, which can mean an APR as high as 4, per cent. Unless we've said otherwise, products are in no particular order. For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails. Your guarantor should be someone who trusts that you will make the repayments each month and would be comfortable making the payments on your behalf if things go wrong. You can still contact Amigo by phone on or by email at hello amigoloans. Forces Compare can look through your details and help you find personal loans, or even secured loans, at fantastic rates. The guarantor can then transfer it to you. Borrowers with a bad credit history can still be eligible for a loan with Amigo, even if they have a County Court Judgement. This is only the case when the borrower keeps up with their repayments and makes sure they are paid on time. We explain how and compare a range of providers that can give you access to many brands, including SoundHound AI.