Amigo Loans Review

Amigo Loans is a credit institution that specializes in providing loans to people who are considered bad creditors. Furthermore, this company specializes in providing so-called guarantor loans, which guarantee that a friend or family member of the applicant will pay the debts in case the client does not honor the payment.

Thus, by guaranteeing that someone else will pay the debts in case the applicant defaults on the loan, the company does not hesitate to provide credit for people with negative credit profiles. Thus, the company can serve clients that are usually refused by other credit institutions.

The company also regularly gives out debt consolidation loans, i.e. when the individual includes all his or her debts in one monthly instalment. Some people even use this type of loan to finance severe expenses such as weddings or the purchase of vehicles. For individuals who need quick cash, if the APR rate is considered, this can be a superior option to traditional payday loans. This, too, is a good alternative for entrepreneurs or small business owners to consolidate their cash flow.

Although it requires a family member or close friend of the applicant to be the business lender, the institution still establishes consequences for customers who do not honor the payment of the loan in question.

How does a guarantor loan work?

This is a loan modality totally directed to people with a negative credit profile. Thus, when applying for this type of loan, the individual must indicate a family member or a close friend who has a good credit profile so that she can pay the debts in case the lender defaults. This person, however, must agree to bear the debts. This makes it so that the credit institution can rely on more than one person to pay back the amount and that, one way or another, the payment will definitely be made.

In order to apply for a guarantor loan, the client must also prove that he or she is able to keep up a steady pace of payment. Contrary to what many people think, this type of loan does not allow money to be requested without repaying it later. If the institution, Amigo Loans in this case, finds that the applicant is not able to maintain a constant payment routine, it will start collecting the amounts from the guarantor in question.

Therefore, to apply for a loan, you must be sure of your credit score. This can be done on several websites, but it is always recommended to look at the portals of the credit bureaus in your region.

However, this type of credit also has higher interest rates than conventional ones, which can be interpreted as an “additional guarantee” that the amounts will be paid back.

It also represents an opportunity for customers with a low credit score to improve their situation. If the individual proves that he or she is a responsible applicant, and that he or she is able to honor the loan payments in full and on a constant basis, his or her credit profile will definitely improve.

Requirements to become a guarantor?

For someone to be eligible to become a guarantor for an applicant, he or she must normally be a close friend or family member of the client in question. In addition, they must be between 18 and 75 years old and have a good credit profile: owning assets such as real estate or cars is a good sign. In addition, the institution will only accept guarantors who have enough money to pay off the debts generated by the loans while continuing their lives as normal.

Amigo Loans

Being a lending institution, Amigo Loans has a number of rules about its loans.

The minimum amount to be borrowed is £1,000. The maximum is £10,000 for one to five years. For loans of three years or less, the largest amount will be £2,500.

If approved, the applicant will have access to the money within two hours to two days.

The current APR on your loans is 49.9%. It is important to take into account that this factor can change, even if the institution claims that this has not been done for about 11 years.

If the loan does not involve collateral, it is not necessary to offer an asset in exchange.

If it does, it is necessary for the applicant to indicate a guarantor who is willing to take on the debts in case the client cannot pay for the loan.

For the loan to be applied for, no fees will be included.

Because Amigo Loans deals with customers with a low credit score, they allow their applicants to repay early without any fees being charged. In this way, the institution allows its customers to pay multiple installments at once, or to do so as early as possible.

The company makes loans available to people with a low credit score.

It is also regulated by the FCA (Financial Conduct Authority).

Common questions about Amigo Loans

How long does it take for the money to be accessed?

The time frame for Amigo Loans customers to access the amount borrowed is from two hours to two days.

Can I accumulate loans?

Yes, Amigo Loans allows loans to be accumulated. The institution offers its customers new loans that join previous ones, allowing the customer to reach the amount they want.

Which people can be a guarantor?

Technically you can ask anyone to be a guarantor, but in reality it has to be someone close enough to you to trust that you can pay back your own loan. They also need to have very good credit to be considered.

Can I accumulate loans?

Yes, Amigo Loans allows loans to be accumulated. The institution offers its clients new loans that are added to the previous ones, allowing the client to reach the amount they want.

Which persons can be a guarantor?

By the credit institution’s criteria, any individual who is a close friend or has family ties to the applicant can be a guarantor. However, you must choose someone you can trust. In addition, they need to have a good credit score to be accepted.

Requirements to apply for a loan with Amigo Loan?

Because it is focused on applicants with a low credit score, people who normally do not meet the requirements for other lenders are eligible for Amigo Loan. Therefore, it is more important to the company that their client can prove that they are a good applicant.

The primary requirements are:

The client must reside in the UK

Between the ages of 18 and 75

Not have filed for bankruptcy or participate in debt management plans or an individual voluntary arrangement (IVA)

Prove that they are able to afford to repay the loans. 

Have a guarantor who is willing to pay the debts in case the applicant cannot pay.

How to apply for a loan?

After considering the options available in the market, you must decide if this is the best option for you. If it is, the application process is done entirely on the institution’s official website.