Guarentor loans

farmer078

Hi

I would like to borrow some money but have a desperately poor credit rating. Looking for loans that are available to me I keep seeing Guarantor loans the most common provider Amigo loans. The Apr is very high (49%) but the repayments are affordable now I have as job and partner is returning to work after a shortened maternity leave.

I've not heard of this type of loan before and cannot find anything on here about them? What are the pros and cons? Should I avoid at all costs? Does the guarantor know who I am and if I fail to repay am I likely to be pursued and threatened by the 3rd party?

Thanks in advance for any advise on this matter?

27col

That's a laugh "Does the guarantor know who I am".
The answer is yes, because you have to find an idiot to act as guarantor. Did you seriously think that there was a pool of people out there, who are prepared to guarantee loans for complete strangers with trashed credit records. The clue is in the name Amigo Loans. Amigo, as in Spanish for friend. If you do not know what a guarantor loan is, then I suggest that you look it up.

BugsyBrowne

farmer078 wrote: »

Hi

I would like to borrow some money but have a desperately poor credit rating. Looking for loans that are available to me I keep seeing Guarantor loans the most common provider Amigo loans. The Apr is very high (49%) but the repayments are affordable now I have as job and partner is returning to work after a shortened maternity leave.

I've not heard of this type of loan before and cannot find anything on here about them? What are the pros and cons? Should I avoid at all costs? Does the guarantor know who I am and if I fail to repay am I likely to be pursued and threatened by the 3rd party?

Thanks in advance for any advise on this matter?

'Brain dead nut case larry forgot my medication mug 'loans are available and unfortunately many guarantors don't realise the consequences when payments are not made and most have to be homeowners for a reason.

DCFC79

farmer078 wrote: »

Hi

I would like to borrow some money but have a desperately poor credit rating. Looking for loans that are available to me I keep seeing Guarantor loans the most common provider Amigo loans. The Apr is very high (49%) but the repayments are affordable now I have as job and partner is returning to work after a shortened maternity leave.

I've not heard of this type of loan before and cannot find anything on here about them? What are the pros and cons? Should I avoid at all costs? Does the guarantor know who I am and if I fail to repay am I likely to be pursued and threatened by the 3rd party?

Thanks in advance for any advise on this matter?

OP whats the loan for ?

Maybe cut your spending to then have money to save up.

Why do you have poor credit ? Missed payments I guess, if so why should anyone be a guarantor for a loan for you if you have missed payments in the past.

Unfortunately the guarantor will know who you are as you need to ask someone eg a friend, family member to be the guarantor and if you miss a payment its not you who is chased but the friend/family member who is chased for the money.

Its not really an avenue 1 should go down, really really think about it before 1 proceeds with it.

farmer078

Hi

Thanks for the replies guy and also pointed out what a Muppet I am too. For some reason I got it into my head the guarantor was as third party that was willing to take a risk for a greater return on his money hence the 49% Apr similar to those guys that let you lend your own money out. At no point in the application do amigo loans ask for details of a guarantor even at the point of accepting the t's and c's, which is what through me and when I ended the process. It also occurred to me at this point that this was a new way for loan sharks to get in on the internet lending act. To be honest I'm still not 100% sure that i 'm not right in the first instance but theirs no way of telling without completing the app and possibly signing up to stupid OK interest rate, which is why I posted join here.

Thank you for your help and apologies for all the grammatical errors writing on the tablet and it won't allow me to edit due to formats.

barbarawright

http://www.amigoloans.co.uk/


" Loans like they used to be
We'll lend you up to £5,000, if a friend
or family member guarantees the loan"

In very large print. I know nothing about whether Amigo are sharks or not but they are making it fairly clear on their homepage what a guarantor is

Errata

49% :eek::eek::eek::eek:

barbarawright

farmer078 wrote: »

Hi

Thanks for the replies guy and also pointed out what a Muppet I am too. For some reason I got it into my head the guarantor was as third party that was willing to take a risk for a greater return on his money hence the 49% Apr similar to those guys that let you lend your own money out. At no point in the application do amigo loans ask for details of a guarantor even at the point of accepting the t's and c's, which is what through me and when I ended the process. It also occurred to me at this point that this was a new way for loan sharks to get in on the internet lending act. To be honest I'm still not 100% sure that i 'm not right in the first instance but theirs no way of telling without completing the app and possibly signing up to stupid OK interest rate, which is why I posted join here.

Thank you for your help and apologies for all the grammatical errors writing on the tablet and it won't allow me to edit due to formats.

JUst out of interest, I filled in a dummy application form - once filled in you get a message which says -


"XXXXX, we've opened an account for you



To get your £5,000 you need a guarantor

They need to be aged 18-75, have good credit and be a UK homeowner,

Ask them to go to amigo.me/G6CC6FL3 and sign the contract. This link will be text and emailed to you.

As soon as your guarantor has signed we'll complete our checks and call you to payout the money"

Hopefully this will convince you that *you* need to find a guarantor who will have to pay back the loan if/when you default. Not some random stranger who Amigo provide.

27col

If the OP could not see the bit in the T &C's about providing a guarantor. Then I suggest that they were being very selective about what they actually were reading.

Brains64

I believe I saw Amigo advertise on ITV4 the other day, as has been said they kinda hark back very emotively to the old days when banks went on personal recommendation rather then electronic credit scoring etc and Amigo incorporate that old way into this contemporary "guarantor" idea.

Sounds like a good idea on paper and yes, I too wish that we could go back to those seemingly more simplistic times and not be at the mercy of these rather fickle, stupid and pointless credit rating systems which really don't do most of us on them any justice at all but I can see a lot of dangers in this guarantor idea, especially for the person offering to be the guarantor.

Perhaps this is why this idea of Amigo's actually works, because let's face it, anyone who would be willing to be a guarantor must be absolutely confident that the person they are doing it for won't default because it'll be their head on the block, personally speaking though, I can't see how anyone can be so sure of someone else, I couldn't be, considering I can't even guarantee that I myself won't default on my loans there's no way I could ever be sure anyone else I know wouldn't default on theirs.

Apples2

Brains64 wrote: »

I too wish that we could go back to those seemingly more simplistic times and not be at the mercy of these rather fickle, stupid and pointless credit rating systems which really don't do most of us on them any justice at all

That's ludicrous.
Credit Ratings offer a chance for lenders to offer competitive rates on a fairly sound basis that profit is going to be made on the product.

If there were no credit ratings, how many more loans would the OP be approved for? How long would it continue with this endless chain of obtaining loans without repaying any of them?

Who covers the losses the lenders will incur when the OP fails to repay the capital investment, let alone the interest (hint: the rest of us through highter interest rates)

How many men behind a desk would it take to have one on one interviews with every applicant? How many Salaries are we talking about and where would those Salaries come from (hint: the rest of us through highter interest rates)

A machine can quite adequately compare an applicants history of repayments to it's own scoring system. For sure a man could do it, but a machine can do it faster and cheaper.

A man who approves loans for everyone will soon be out of a job as it would be costing his employers huge sums of money.

It's very short sighted to think you can bully a company into throwing cash at you just because of a hard luck story. They are there to make profit from you, nothing more.