Loan gamble

D1mitchell

Dear all,

Can anyone give me some advice ?

I am considering taking a loan with Amigo loans that has an apr of 62%. This is partly due to my terrible credit rating. I've tried to get a loan with my own bank and also other high street bankers. My intention is to pay off all of my outstanding debts with the loan. This includes my current account overdraft (of which I incure a daily fee) and other bills such as my credit cards and some old bills.

The gamble is this: I would hope that by paying everything off and not missing any payments with Amigo that my credit rating would improve and that I'd be able to successfully apply for a loan with a normal apr rate of say between 6-8%.

I know that I can afford the monthly repayments with Amigo I however, would hope that this would be short term (6months) tops.

Am I being naive ?

Best

David

ILW

What fool is going to be your guarantor?

DCFC79

D1mitchell wrote: »

Dear all,

Can anyone give me some advice ?

I am considering taking a loan with Amigo loans that has an apr of 62%. This is partly due to my terrible credit rating. I've tried to get a loan with my own bank and also other high street bankers. My intention is to pay off all of my outstanding debts with the loan. This includes my current account overdraft (of which I incure a daily fee) and other bills such as my credit cards and some old bills.

The gamble is this: I would hope that by paying everything off and not missing any payments with Amigo that my credit rating would improve and that I'd be able to successfully apply for a loan with a normal apr rate of say between 6-8%.

How long do you think a credit rating takes to improve ?
Id imagine it would take a good few months to improve and theres no guarantee you would be able to get a loan of 6 - 8%.

I know that I can afford the monthly repayments with Amigo I however, would hope that this would be short term (6months) tops.

Am I being naive ?

Best

David

I thought amigo loans did guarantor loans, do they do normals then ?

If your on about a loan where you have a guarantor whose neck is on the line then have you found someone to be the guarantor ?

Rather than jump in bed with the devil (or let a friend do so) you considered setting up payment plans with who you owe money to ?
Maybe post an soa on the debt free board.

BugsyBrowne

D1mitchell wrote: »

Dear all,

Can anyone give me some advice ?

I am considering taking a loan with Amigo loans that has an apr of 62%. This is partly due to my terrible credit rating. I've tried to get a loan with my own bank and also other high street bankers. My intention is to pay off all of my outstanding debts with the loan. This includes my current account overdraft (of which I incure a daily fee) and other bills such as my credit cards and some old bills.

The gamble is this: I would hope that by paying everything off and not missing any payments with Amigo that my credit rating would improve and that I'd be able to successfully apply for a loan with a normal apr rate of say between 6-8%.

I know that I can afford the monthly repayments with Amigo I however, would hope that this would be short term (6months) tops.

Am I being naive ?

Best

David

If you have a bad credit rating and depending what's on it then it's going to be a hell of a lot longer then 6 months to repair it as these can take years.

tell_it_how_it_is

Are you out of your mind?

Apples2

It is this way of thinking which led to your current predicament (unless you took the others out knowing you couldn't repay).

D1mitchell wrote: »

I know that I can afford the monthly repayments with Amigo

Everybody can when they apply for the money, trouble comes later.

The Gamble on this venture lies solely with the guarantor, whoever says yes to you is not of sound mind (we will tell him if he posts on here).

Don't do it.

D1mitchell

Cheers folks that's all I needed. A little dose of reality !

broad-sword_2

Nice to see somone waking up to the problem and not coming out with a load of whining and abuse.Well done - now make it stick!