Anyone seen this new loan company

Treadmill

Loans with guarantors who obviously have a bad credit rating too because if they didn't they could borrow the money from a high street lender for you, recipe for disaster, the website is cringeworthy too, a bunch of people claiming to be computer designers etc, surely it would be better if they where financial professionals. Another leaching pimple on the !!!! of civilised society.

FinanceForEveryone

Treadmill wrote: »

Loans with guarantors who obviously have a bad credit rating too because if they didn't they could borrow the money from a high street lender for you, recipe for disaster, the website is cringeworthy too, a bunch of people claiming to be computer designers etc, surely it would be better if they where financial professionals. Another leaching pimple on the !!!! of civilised society.

The sad fact is the guarantor usually has a very good credit rating as must be a home owner and are ultimately the person getting out a loan to give to their close friend or family member, except rather than borrowing from their bank at sub 10% APR they borrow at 49.9% APR!! Very lucrative business model for Amigo:

http://www.lovemoney.com/news/credit-cards-current-accounts-and-loans/loans/15679/amigo-loans-danger-guarantor-50-apr

Treadmill

Being a homeowner doesn't necessarily mean a good credit rating, I am a homeowner and mine is horrendous. It probably means that they are less able to do a bunk and also there's also the possibility of charges against the property.

Wutang_2

harveybobbles wrote: »

I know someone who got one of these loans from Amigo...

Borrowed £5000... no credit checks. Money in account within days... Got ther 72 year old home owning Nan to be guarantor...

Pay back £195 for erm 5 years. So thats £11700 to pay back.

Madness.

If they fail to get payment, they will then aopply to the guarantors bank to get the payment.

Every missed payment goes on the guarantors CRA.

disgusting.

Agreed.......................I LOVE THIS POST

Brains64

The other problem I can see with this "guarantor" thing is that you may have to ask more than one person before you get someone to agree and I take it that most people don't exactly want to....uh...shout from their local rooftops that they are taking out a loan??, it's certainly not something that I want to advertise in my local, whether those people you ask agree to do it or not, they will now know your financial affairs which you might not want them to know about, whether it's friends or family there are some things you may want to keep private, this is another reason why I think it's a bad idea as well as the other things that have been mentioned.

iaintw

if you have this then DON'T
these loans are really pain
my advice is to get a overdraft from your bank if you have money issues and not a loan or payday loans